How to Apply for IPO in India

What I found out that a lot of people don't know what is IPO or they don't know how to apply for an IPO especially in India. That's why I have created a Video on the same subject but in my native language Hindi.

In simple language, IPO or Initial Public Offering is a process through which a private company offers its shares to the public because they have to raise capital through the public. After IPO a private limited company becomes a public listed company. This entire process is handled by SEBI i.e. Securities and Exchange Board of India. SEBI ensures that the entire process is transparent and the company maintains certain criteria before going public so that the public money is safe. Any company that wants to do an IPO, files a Draft Red Herring Prospectus (i.e. DRHP) which gives complete information about the company's business, financials, risks and the purpose of raising the fund.

To know which IPO is available for application, I check the https://www.chittorgarh.com/ website. You can also see which IPOs are available in Groww, Zerodha or any broker. I prefer mainly Chittorgarh website because all the information is available here. Information like, what is the current subscription and what people think about the IPO. If you have any doubt you can also ask in Chittorgarh forum main. Here we can also see GMP or Gray Market Premium. Gray Market Premium indicates how much profit can be made in IPO, but we should not apply only in basis of GMP. Because GMP can be manipulated for the small companies.

The whole process of applying the IPO is given in the Video where I have shown how to apply using Groww, Zerodha as well as Axis Net Banking. If you are using any other broker, the process is almost similar or if any netbanking then also the process is similar.

Mostly 1 lot of retail applications is always less than Rs 15K for mainboard IPO which mostly I prefer. And IPO is a lottery system so it does not mean that you will get it, if you apply.

I have applied to 100 companies till now and I got only 10 IPOs. If your IPO is not successful your mandate will be canceled within 3 days. When you apply for IPO, your money remains in your bank account that means that money will be earning the ineterest so no harm in applying. When you get IPO, only then the money is debited from your bank account.

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