What is Zerodha?
Zerodha is one of the largest Online brokerage platforms designed to invest in stocks, derivatives, mutual funds, ETFs, bonds, and more. Zerodha started its operations in 2010 with an aim to offer an app to investors that is secure, easy to use, and accessible to everyone, that too at the lowest possible cost. Do you know the reason behind the name Zerodha? The name Zerodha, “Zero” and “Rodha”, means Barrier in Sanskrit. Every day, Zerodha receives over 1.6 crore+ clients to use its investment platforms, making it the most trusted and reliable trading app in India.
What do you need before applying for an IPO in Zerodha?
Before getting into the process of how to buy ipo in Zerodha, here are some basic things that one must have in order to jump to the next section.
- Working Zerodha demat account, obviously.
- UPI ID (Google Pay, PhonePe, BHIM, Paytm, etc.), which is connected to your bank account.
- A necessary balance in your bank account to apply for IPO
- Lastly, internet access.
How to buy IPO in Zerodha
Step 1: Visit the Kite App
Click on Login to Kite and enter the Phone/User ID and Password if already signed in.
Otherwise, click on Open a free account to where you have to enter all the necessary details like PAN Card, Aadhar card, and bank details to get your Zerodha app started working.
Step 2: Go to the IPO Section
- Once logged in, you will see the Dashboard of the Kite app.
- Now you need to click on Bids in the bottom menu
- Then, click on IPO in the top menu
Once you select IPO, you will be taken to the page where you can see a list of ongoing, Applied, and upcoming IPOs currently open for subscription.
Step 3: Select the IPO you want to buy
Kindly click on the IPO name you want to buy
If you click on any IPO, you will see a pop-up showing various Investor Types.
The investor type is a Quota/category that investors can choose to apply for the IPO, which can be:
- Retail Individual Investor
- Employee
- Existing Shareholder
- Non-institutional investor
Step 4: Select the Investor Type
If it’s a Mainboard IPO, you will normally choose the RII (Retail Individual Investor) Category.
If it’s an SME IPO, you will see the HNI category. And other than that, there are NII, Employee, and Shareholder options too.
Step 5: IPO Details
Once selected, Investor type, a new page will open with all the IPO details like:
- Min Quantity
- Price range
- Dates
- Lot size
- Issue Size
- Investor Type
- Discount
- About company
- Fundamentals
- Purpose
- Strengths/Risks
- Subscription times
- IPO Status
Click on Apply Now to start your application
Step 6: Enter your UPI ID
Now you need to enter your UPI ID that is linked to your bank account
Make sure to enter the correct UPI ID; otherwise, you won’t be able to apply for the IPO.
If you have entered the correct ID, then your name will be displayed.
Step 7: Choose the Lot and Bid Price
Here you can select the Number of Lots you want to apply for.
Select the Bid price. Usually, people bid for the cut-off price as it maximizes the chances of getting the allotment.
Click on the Submit button to apply for the IPO
After applying your IPO, you don’t stop here.
In fact, this is the most important step you must follow:
Step 8: Approve the UPI Mandate
After clicking on Apply for IPO, you will soon receive a notification in your UPI ID (GPay/PhonePe/BHIM/Paytm) for the mandate approval.
- Click on Approve
- Enter your UPI Pin
- The IPO amount will be blocked until the allotment announcement.
And that’s it!! Here is how you can follow the zerodha ipo process. It can be overwhelming at first, but after giving it some time, it is quite a quick and easy process, and it only takes 2-5 minutes to follow this process.
IPO Apply Timing on Zerodha
Once the IPO is open for subscription, investors can start the Zerodha IPO process from 10:00 AM onwards, and the IPO application window stays open until 04:30 PM. One must compulsorily accept the mandate approval before 05:00 PM. If you apply for the IPO after 04:30 PM, then your application might be processed the next day.
If you are applying on the last day, make sure to apply before 04:30, or else your IPO application will go to null. Moreover, you can also apply for the IPO one day before it opens for subscription by following the same above given steps.
