Zerodha is a leading discount broker in India. The firm offers online trading and investment opportunities and is a pioneer of the country’s discount brokerage industry. Many customers are looking forward to learn how to apply for IPO in Zerodha.
Zerodha offers an easy way for its customers to apply for IPO online by login to Zerodha Kite and going to Zerodha Console. You can access these trading platform after opening demat account with Zerodha.
But wait, are you thinking, “Can I buy IPO without demat account?”
Or is it compulsory to have demat account for IPO? Well! as already known that demat account ensure safety to your investment and further smoothens the process of IPO application.
Thus, it is important to have an account with the stockbroker, further having a demat account with the broker makes it easier for you to trade shares online using their trading app.
So, let’s dive in to know how you can apply for the IPO with Zerodha.
Zerodha IPO Apply
You can apply for Zerodha IPO only if you have an account with the firm. Then, all you need to do is log in to Zerodha Console and use your UPI (Unified Payment Interface) for application.
Therefore, the Zerodha UPI IPO application allows the firm’s existing clients to apply for IPO via an online method.
The Zerodha IPO application involves 3 major processes:
- Creating a UPI ID on any BHIM UPI app (only for those who do not have UPI enabled)
- Applying through Zerodha Console using the UPI ID
- Approving the mandate notification on BHIM UPI app ( using the UPI PIN)
Now if you are thinking, “Can I apply for IPO from two Demat account“, then this is often confusing. Two Demat accounts registered with the same PAN card number do give you access to multiple applications.
However, have multiple Demat accounts with different names with the same or different stockbroker, makes it possible for you to apply for multiple IPO applications.
Here if you want to fill multiple IPO applications with Zerodha, then you can use different Demat accounts of your friends and family to increase the chances of subscription.
Zerodha IPO Console
You should note that the Zerodha IPO application can be done only through the firm’s back-office i.e. Zerodha Console.
Also, you need a UPI app with has UPI 2.0 version enabled. Any lower version, shall not work. To check out the UPI 2.0 app list, click here.
Just install one of the supported apps and follow these steps to apply for an IPO through Zerodha.
- Firstly, Zerodha login with client id and then click on Console to choose the IPO you want to invest in.
- Once you do so, you will be able to view all its details namely – open date, close date, lot size, issue size, etc.
- Now, you need to enter your UPI ID and then click on “verify”. The provided UPI ID should be linked to your personal bank account otherwise the IPO application can get rejected.
- After the UPI verification, place your bid and select the investor type. Note that the quantity should be a multiple of the lot size.
- For applying at the cut-off price, just tick the checkbox next to “Cutoff-price”.
- For placing the bid at your desired price, enter the price of your choice in the “Price” field.
- Once done with these, “confirm” your application and then click on “Submit”.
- Once you do so, you will receive a mandate request on the UPI app that you chose.
- Simply accept the mandate request and that’s it. (In some cases, receiving a mandate make take long)
Once the bid is submitted, you will receive a confirmation message from the exchange via SMS. You can also check your IPO application’s status.
Open your account with Zerodha now for Paytm IPO apply.
Accepting the mandate will block the respective funds in your bank account. They shall remain blocked until the allotment date – which is 2 days prior to the listing date.
In case you receive an allotment, the respective amount will be debited from your bank account. Further, this amount will be credited to your Demat account in the form of shares.
In case you do not receive an IPO allotment, the blocked funds will be released back in your bank account on the date of allotment.
How to Apply for IPO in Zerodha Kite?
Unfortunately, you can not apply in IPO through Zerodha Kite. Instead, clients can apply through the online banking portal of their respective banks.
Note that you have to fill your Zerodha Demat account-related information every time you apply for IPO’s through the bank.
How to Apply for IPO in Zerodha without UPI?
Only Zerodha UPI based IPO applications are offered by the firm. If you do not have UPI, you can create one for free through simple steps.
Alternatively, you can apply for an IPO using “net banking”. Such a provision is available in these banks – SBI, Kotak, HDFC, Axis Bank and ICICI.
Zerodha IPO Allotment Status
Unfortunately, the IPO allotment status can not be checked on Zerodha. However, you can check your Zerodha IPO status on the IPO registrar’s website. Your PAN number is required to do so.
You can also get an alert from CDSL after the shares (IPO allocated ones) are credited in your Demat account.
Note that your allotment status is published only after the allotment is done.
Zerodha IPO Charges
Good news! IPO applications are free on Zerodha. Since the firm offers equity deliveries at zero brokerage charges, they do not charge any commission for selling IPO allocated shares through their platform.
However, if you sell IPO shares through Zerodha, you need to pay government taxes as well as some transaction changes.
Zerodha IPO Cutoff Price
The cut-off price of an IPO is decided by the issuer company. Moreover, this price is based on the share’s demand.
You can opt to apply for IPOs at the cut-off price. If you so so, you need not choose a price while bidding.
Simply select “cut-off” and the shares will be allocated at the cut-off price. As mentioned before, the cut-off price option is available in the Zerodha IPO.
IPO Through Zerodha – Final Thoughts
Zerodha offers an online IPO application service using the UPI payment gateway. The only legitimate way to do so is through Console.
The firm has continuously been developing innovative investment ideas and trading facilities for its users. Hope this article on IPO application through Zerodha has made things clear for you. Happy trading!
In case you are looking ahead to open the Demat Account
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