The Hyundai Motor India IPO

Applying for an IPO (Initial Public Offering) is a straightforward process in India, and it can be done through various channels. Here’s a step-by-step guide on how to apply for an IPO:

1. Via ASBA (Application Supported by Blocked Amount) Through Your Bank

ASBA is a mandatory process for IPO applications in India. When you apply via ASBA, the application amount is blocked in your bank account until shares are allotted.

Steps:

• Log in to your net banking account: Most major banks like SBI, HDFC, ICICI, Axis, Kotak, etc., offer ASBA services.
• Go to the IPO section: Typically found under the “Investments” or “Services” tab in your net banking portal.
• Select the IPO you want to apply for: Choose the IPO (e.g., Hyundai Motor India) from the list of open issues.
• Enter the required details:
  • Bid quantity: Enter the number of shares you want to apply for in multiples of the lot size.
  • Price: You can either enter a specific price within the IPO’s price band or choose the “Cut-off price” option to apply at the final determined price.
• Submit and block the amount: Once you submit your application, the bid amount will be blocked in your account. The funds will remain in your account but will be unavailable until the IPO allotment is done.

2. Via Trading/Brokerage Platforms

Many stockbrokers allow you to apply for IPOs online through their platforms.

Steps:

• Log in to your trading account: Use your trading platform (Zerodha, Upstox, ICICI Direct, HDFC Securities, etc.).
• Navigate to the IPO section: There’s usually a tab called “IPO” or “Public Issues.”
• Select the IPO: Choose the ongoing IPO you want to invest in (like Hyundai Motor India IPO).
• Fill in details:
  • Number of shares/lots: Specify the number of lots (each lot contains a minimum number of shares, like 7 for the Hyundai IPO).
  • Price or Cut-off: Either enter the bid price within the price band or opt for the “Cut-off price.”
• Submit application: The system will automatically block funds in your bank account through the ASBA process.

3. Through UPI (Unified Payments Interface)

Some brokers and financial platforms allow you to apply for IPOs using UPI as a payment method.

Steps:

• Apply via UPI through a broker: Log in to your broker’s app or website.
• Choose the IPO: Select the IPO you want to apply for.
• Enter bid details: Specify how many shares you want and at what price.
• Link UPI: Enter your UPI ID when prompted.
• Approve payment: Once you submit the application, you will receive a payment request on your UPI app (such as Google Pay, PhonePe, Paytm). Approve the payment to block the required amount.

4. Offline Method (Physical Form)

If you prefer the offline method, you can fill out a physical IPO application form and submit it to your bank or broker.

Steps:

• Get the form: Obtain an IPO application form from your bank or broker.
• Fill in details: Provide details such as your name, PAN, Demat account number, bid quantity, and price.
• Submit: Submit the filled form to your bank branch offering ASBA services. The amount will be blocked in your account until allotment.

Key Points to Note:

• Demat Account: You need a Demat account to apply for an IPO. All shares are credited electronically.
• ASBA: Your money remains in your bank account but is blocked for the IPO application until the shares are allotted.
• Allotment Process: After you apply, shares will be allotted based on demand and availability. If you do not receive any shares, the blocked funds will be released.

IPO Application Types:

1. Retail Individual Investors (RIIs): Individual investors who apply for less than ₹2 lakh in the IPO.
2. Non-Institutional Investors (NIIs): Individuals or entities applying for more than ₹2 lakh.
3. Qualified Institutional Buyers (QIBs): Institutional investors like mutual funds, banks, and other financial institutions.

Important Things to Keep in Mind:

• Cut-Off Price: If you apply at the cut-off price, you’re agreeing to pay the final price determined during the IPO process, ensuring a higher chance of getting shares.
• Minimum Investment: The investment depends on the IPO lot size. For example, if a lot contains 7 shares and the price band is ₹1,865 to ₹1,960, you will need to invest a minimum of ₹13,055 to ₹13,720.
• Listing Gains: Once shares are allotted, they are listed on the stock exchange, and investors can sell them for potential listing gains.

By following these steps, you can seamlessly apply for an IPO and participate in new market listings like the upcoming Hyundai Motor India IPO.

For more information of this IPO click here.