IPO - Initial Public Offering

An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time, allowing investors to buy equity in the company. It’s a way for companies to raise capital by selling ownership stakes.

To apply for an IPO through 5paisa, log in to your 5paisa account, navigate to the 'IPO' section, select the IPO you wish to invest in, and follow the instructions to place your bid. Ensure your account is funded before applying.

You can apply for an IPO using various application types like ASBA (Application Supported by Blocked Amount) or UPI. ASBA blocks the required funds in your bank account while UPI allows for direct payment through your UPI ID.

IPO shares are allotted based on demand and the number of bids received. If the IPO is oversubscribed, the allotment may be done via a lottery system or proportional basis, depending on the category of investors.

If you don’t receive an allotment, the blocked funds will be released back into your bank account if you applied via ASBA, or the UPI mandate will be canceled if you used UPI. You can check the allotment status on the 5paisa IPO page or through the registrar's website.