What happens to your money once you bid for IPO?

In case the number of shares allotted are less than what you had applied for, the excess funds blocked in your account are released. The same mechanism (also called ASBA- Applications Supported by Blocked Amount) is applied even if you pay for an IPO directly from your bank account without using your UPI ID.

What happens after applying for IPO?

On the third day after bidding for an IPO, the allotment of shares takes place. This process is also termed as the allotment date. The fourth day is concerned with the intimation of refunds. The most important day is the fifth day which is when your demat account is credited with the pertinent shares.

How do I pay for an IPO?

IPO live on UPI Now you can use your UPI ID as a payment option while subscribing for IPO on National Stock Exchange(NSE) & Bombay Stock Exchange(BSE). Simply tell your broker to use UPI ID as the payment option while filling the IPO application.

Do we lose money in IPO?

If you are investing in any Initial Public Offer just for listing gains then you can gamble with your money. Therefore, the gain in two IPO’s and loss in one might be enough to wash out all the gains.

Can I cancel IPO bid?

Yes, you can cancel your IPO application through your bank or broker from where you had applied for an IPO if you are a retail investor. The investors in NII or QIB category cannot cancel their bids. The IPO cancellation request can be placed anytime from the issue open date till the issue closure date.

Does all IPO Give profit?

If you participate and buy stocks in an IPO, you become a shareholder of the company. As a shareholder, you can enjoy profits from sale of your shares on the stock exchange, or you can receive dividends offered by the company on the shares you hold. IPO or Initial Public issues is open to all retail investors.