How to Apply for IPO online (step by step guide)

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If you want to transform a privately-held company into a public company then you must come up with an IPO. Initial Public Offering (IPO) can be defined as the process in which a private company or corporation can become public by selling a portion of its stake to the investors.  This process also creates an opportunity for smart investors to earn a handsome return on their investments.

So, an IPO is generally initiated to infuse the new equity capital to the company to simply raise capital for the future or to monetize the investments made by existing stakeholders. The institutional investors like Mutual Funds or LIC, high net worth individuals (HNIs) and the normal people like us can buy the first sale of shares in the prospectus.

Once the IPO is done, the shares of the firm are listed and can be traded freely in the open market and share price will fluctuate.

Investing in IPOs can be a smart move if you are an informed investor. But not every upcoming IPO is a great opportunity, fortunately out of the last 14 IPOs only 4 opened in loss, other 10 cheered the investor with returns as much as 123% in just one week.  

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Here is how you can apply for any IPO online.

Burger King IPO is live, I will explain step by step process to apply:

1) Open a demat account in Upstox here and you will get id & passwords on same day. Opening demat is free. (If you already have a demat account then skip this step).

2) Goto

3) You will see live IPOs here, Click on ‘Details’ tab of respective IPO.

4) Here is the IPO details. Continue with ‘Place bid’

5) Select investor type as ‘Individual’ and enter your UPI id below it.

6) Fill quantity or Market Lot (minimum shares you can apply), 250 in this case,  and tick on ‘Use Cutoff-price of ₹60’ and click on continue.

7) Complete it with ‘Confirm and Apply’ & Done!

7) Done!

Note: These steps can also be performed via Upstox App. IPO can also be applied via Net Banking > IPO

8) Check your UPI App where you must have received IPO request for approval.
It can be BHIM UPI app or Google Pay or PhonePay. Whatsoever app you use.
(This may take few minutes or hours to receive this notification).
Approve it.

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Your respective Funds (15,000 Rs. in this case) will be freezed and won’t debit until you get one lot.

What’s next:

Case 1) If you get the IPO lot:  Then 15,00o Rs. would be debited and respective stocks (250 Qty at 60 Rs. in this case) would be credited in your demat account.

Case 2) If you don’t get the UPI lot: Then funds would be released to use from your account. Bad Luck!

Hope this helps!

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Akshay Seth
Research Analyst (SEBI Regd.)
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Akshay Seth is a SEBI Registered Research Analyst. Has taken sessions on 'Equity Analysis' in IIT Madras, IIT Delhi, IIT Guwahati, IIT Mandi, NMIMS Mumbai. Can be contacted for Stock Advice and Learning Stock Analysis (Fundamental & Technical). +91 8826423141 |
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