How to Invest in an IPO via UPI: Simple Step-by-Step Guide

Business News: Do you also think that it is necessary to have a netbanking to invest in an IPO (Initial Public Offering)? If yes, now remove this confusion. In today's digital age, it has become very easy to apply to IPO through UPI. Every major brokerage platform is now providing this facility. In this article, we will tell you how to invest in any IPO through the Paytm Money app, and that too in some easy steps.

What is an IPO, and why is it special?

The IPO is called the initial public issue in Hindi. When a company first brings its shares to sell to the common people, it is called an IPO. It is considered part of the primary market. Investors are counted among the initial shareholders of that company by investing in the IPO.

What is necessary for application in IPO?

Whether you use Netbanking or UPI, it is mandatory to have a demat account. You cannot invest in any IPO without a demat account.

How to apply from Paytm Money in IPO?

Step-by-step guide:

• Step 1: First of all, go to the Google Play Store and download the Paytm Money App.
• Step 2: Open the app and log in by filling in the necessary information.
• Step 3: Scroll down on the home screen or go from the menu to the IPO section.
• Step 4: Here you will see the list of all open IPOs.
• Step 5: Select an IPO whose details you want to see.
• Step 6: Now the app will show you the basic information of the IPO of that company.
• Step 7: Enter your UPI ID in the 'Add Details' section given below.
• Step 8: Now you will see the payment amount. Confirm the payment by clicking on the 'Proceed to Pay' button.

Your IPO application is now submitted! If you get an allotment, the stocks will be credited to your demat account.

What is important to take care of before investing?

• Be sure to check the background of the company - its business model, revenue, and growth possibilities.
• Check IPO's GMP (Gray Market Premium)—this gives you the idea of ​​potential listing gains.
• Which category is the IPO - is it the mainboard IPO or SME? The risk in SME IPO is high.
• Decide the amount of investment thoughtfully-do not invest in haste.

Investment in IPOs has become much easier now

In today's era, investment in IPOs has become much easier than ever, and Netbanking is not mandatory for this. You can only participate in it through an app like your UPI ID and Paytm Money. But keep in mind, complete research is necessary before investing in an IPO.