IPO Investment Tips – Know Why & How to Buy IPO Online in India

SThe stock market offers various possibilities for an investor to invest in financial assets as per his or her needs. IPO investment is one such means to fulfill your dreams. Have you ever invested in a company by means of IPO? If no, this article will give you a very clear understanding of how to buy IPO, how to invest in IPO and many more. So why does a company go for initial public offering when it can use other modes of financing like bank loans, etc.? Through IPO, the company gets more visibility in the public domain. General public like you and me get an opportunity to become shareholders of a big corporate or entity. Even a start up that seeks funds by means of IPO may grow to become one of the most sought after companies in the future. You see many companies listed on the stock exchanges like BSE and NSE. Before getting listed on the exchanges, these companies had issued shares to the public through IPO for want of capital. After the IPO process, they got listed. Many are not aware of how to invest in IPO in India. Let us understand how to apply for IPO through this article.

Why should you buy IPO shares?

Investors buy shares of the issuer company by investing money in the company and thereby become shareholders of the company. As a shareholder, you may get dividends, bonus shares, etc. based on the profit the company earns and based on its discretion. Each one of us has dreams and to fulfill those, proper financial planning is necessary. We should correctly identify the opportunities by which we can make our money grow. Investing in equity that is buying shares of the company is one of the best ways by which you can plan to achieve your long term goals. The price of the share you hold may increase with every year and will help you in wealth creation. Let us learn more about how to buy IPO shares in India.

What should you do before investing in IPO?

You should do have a good knowledge of the sector and the company you are planning to invest. Analysis of the company’s balance sheet is very crucial. A clear understanding of the company’s future projects and vision is very necessary to know whether it will have a sustainable future. Investment decision has to be taken carefully and not in a hurry. Many well established companies that you see now-a-days would have raised IPO in their initial stages. The company you choose to invest may join the top league of the companies sometime later.

How to buy IPO shares:

The most important thing you need to have before you apply for IPO is the demat account. If shares are allotted to you under the IPO investment process, the shares will get credited to your demat account only. Demat account can very easily be opened with any of the SEBI registered brokers. You can buy IPO shares through brokers wherein you can download the IPO application form from their website. You can fill the form and submit to the broker again.

How to buy IPO shares online:

Many investors may not have the idea of how to invest in IPO online. You can buy IPO shares online as well by applying for it through certain websites. ASBA (Application Supported by Blocked Amount) procedure is followed in case of payment. It simply means that your IPO application money remains blocked in your bank account till the allotment is finalized. If no IPO shares are allotted to you, then the particular amount that was blocked is released. To know how to buy IPO online, visit

Hope you learnt something about how to buy IPO in India with me today. Figure out the best way to invest and do it now!