How to Apply for IPO on Groww: A Step-by-Step Guide

Investing in an Initial Public Offering (IPO) is an exciting opportunity to buy shares of a company before it is listed on the stock exchange. The process of applying for an IPO has become much simpler with platforms like Groww. In this guide, we’ll walk you through how to apply for IPO on Groww, from account setup to checking your application status.

Pre-Requisites for IPO Application on Groww

Before you apply for an IPO on Groww, there are a few preliminary steps you need to complete:

1. Register on Groww: If you don’t already have a Groww account, the first step is to download the Groww app and complete the registration process.
2. Open a Demat-cum-Trading Account: A Demat account is required to hold the shares you buy, while a trading account is used for buying and selling shares.
3. KYC Verification: You must complete your KYC (Know Your Customer) process for identity verification. This is a standard procedure to ensure that your personal details are accurate and up to date.

Once these steps are done, applying for an IPO on Groww is a seamless process. Let’s get started!

Steps to Apply for IPO on Groww

1. Open the Groww App

First, open the Groww app on your phone. Ensure that you are logged in to your account.

2. Navigate to the IPO Section

On the homepage, go to the “Stocks” tab. Scroll down, and you’ll find the IPO section. Click on it to proceed.

3. Choose a Live IPO

On the next page, you’ll see a list of live IPOs, upcoming IPOs, and closed IPOs. Select the live IPO that you want to apply for. Only live IPOs are open for investment, so make sure you choose one that is currently accepting applications.

4. Enter the Number of Lots

After selecting the IPO, you will be directed to a page where you can specify the number of lots you want to apply for. Each lot is a predefined number of shares, and you must apply for whole lots (you cannot apply for fractional shares).

5. Provide Your UPI ID

To complete your application, you will be prompted to enter your UPI ID. Groww uses UPI (Unified Payments Interface) for IPO applications, which blocks the money for the application in your bank account until the allotment process is complete.

6. Complete the UPI Payment Process

Once you enter your UPI ID, you will be redirected to your UPI app (e.g., Google Pay, PhonePe, etc.). You will need to approve the block amount for the IPO application. The funds will be blocked in your bank account until the IPO allotment is finalized.

7. Check IPO Application Status

After submitting your IPO application, you can check its status anytime. In the IPO section of the Groww app, you will see the status of your application listed next to your application number.

Note: Currently, Groww does not allow pre-open orders for IPOs on the listing day, so ensure you apply during the IPO subscription period.

Also Read: Link Intime India Private Ltd IPO Registrar Review

What Happens After the IPO Period?

Once the IPO subscription period is over, the next step is the allotment process. The shares are allotted to investors based on their application and the number of shares available. The IPO shares will then be listed on the stock exchange, and you will be able to trade them in the secondary market. If you’re allotted shares, the amount will be debited from your account. If not, the blocked amount will be unblocked and made available for use.

Categories of Investors for IPO

IPOs have different categories of investors, each with a certain portion of the offering:

1. Qualified Institutional Buyers (QIB): Includes mutual funds, domestic financial institutions (banks, insurance companies), and foreign institutional investors.
2. Non-Institutional Investors (NII): Comprises corporate entities and individuals who apply for a larger portion than retail investors.
3. Retail Individual Investors (RII): Includes individual investors who apply for shares under the prescribed limit.

Also Read: Top IPO Registrars in India: IPO Registrar List in India

What Happens After You Apply for an IPO?

After applying for an IPO, the following steps take place:

• Application Money Blocked: The amount you bid for the IPO is blocked from your account but is not debited until the allotment process is done.
• IPO Allotment: If you are allotted shares, the amount will be debited from your account. If you’re not allotted any shares, the blocked amount will be unblocked.
• Shares Listed: After the IPO listing, you can sell the shares you’ve been allotted in the secondary market.

Why Should You Apply for an IPO?

Investing in IPOs offers the potential for significant returns, especially if the company has strong fundamentals and growth prospects. By applying through Groww, you can easily access IPOs and apply in just a few steps.

Conclusion

Applying for an IPO on Groww is a straightforward process, and with the steps outlined above, you can easily participate in new stock offerings. Just make sure your accounts are ready, do your research on the IPO, and follow the steps in the app for a seamless investment experience. Whether you’re a seasoned investor or a beginner, Groww makes the IPO application process simple and accessible.

Now that you know how to apply for IPO on Groww, you’re all set to dive into the exciting world of IPO investments.

FAQs