IPO Guide for Beginners
Everything you need to know about investing in Indian IPOs — from what an IPO is to how to check your allotment.
What is an IPO?
An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time on a stock exchange like NSE or BSE. It is a way for companies to raise capital, and for investors like you to become part-owners of a business from day one.
How to Apply for an IPO
Follow these six steps to apply for your first IPO in India.
Open a Demat & Trading Account
You need a Demat account to hold shares and a trading account to apply for IPOs. Open one with a SEBI-registered broker like Zerodha, Groww, or Upstox. It takes 10–15 minutes online.
Tip: Keep your PAN card and Aadhaar handy for KYC verification.
Link Your Bank Account (UPI / ASBA)
IPO applications use ASBA (Application Supported by Blocked Amount). Your money stays in your bank account and is only debited if you get an allotment. Link your UPI ID or net banking to your broker.
Tip: UPI is the fastest method — most brokers support it for IPO applications up to ₹5 lakh.
Research the IPO
Read the Red Herring Prospectus (RHP) for financials, business model, and risk factors. Check the Grey Market Premium (GMP) as a sentiment indicator. Look at the company's revenue growth, profitability, and valuation compared to listed peers.
Tip: A high GMP does not guarantee listing gains. Always check the fundamentals.
Apply for the IPO
Log in to your broker app, go to the IPO section, select the IPO, choose the number of lots, enter your UPI ID, and submit. You can apply at the cut-off price to maximise allotment chances. The IPO is open for 3 days.
Tip: Apply on the first or second day — avoid the last-minute rush that can cause technical issues.
Check Allotment Status
Allotment is announced 6 days after the IPO closes. Check your status on the registrar's website (Link Intime, KFin Technologies, etc.) using your PAN or application number. If not allotted, your blocked amount is released within 1–2 days.
Tip: Use our Allotment Status page for direct links to all major registrar portals.
Listing Day Strategy
Under SEBI's T+3 framework, shares are credited to your Demat account by T+2 and the stock lists on T+3 after the IPO closes. On listing day, you can sell at the open price for listing gains, or hold for the long term. Have a clear exit strategy before listing day.
Tip: Avoid panic selling on volatile listing days. Set a target price in advance.
IPO Glossary
Key terms every IPO investor should know.
Initial Public Offering — the first sale of a company's shares to the public.
The unofficial premium at which IPO shares trade before listing. It indicates market sentiment but is not regulated.
Application Supported by Blocked Amount — your application money stays in your bank and is only debited on allotment.
Applying at cut-off means you agree to pay whatever price is finalised within the price band. Recommended for retail investors.
The minimum number of shares you must apply for. You can apply for multiples of one lot.
The range within which you can bid for IPO shares, e.g. ₹100–₹105. The final price is set at or below the upper end.
The detailed offer document filed with SEBI containing the company's financials, business details, and risk factors.
When total applications exceed the shares on offer. A 10x subscription means 10 times more applications than shares available.
The agency that manages IPO applications and allotment — e.g. Link Intime, KFin Technologies, Bigshare.
The profit made by selling shares on listing day at a price higher than the IPO issue price.
Frequently Asked Questions
Common questions from first-time IPO investors.
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