IPO
By Sushila Mundhra on October 23, 2023
Expert1. How to stay informed about ongoing IPO’s and upcoming IPO’s.
· Jainam provides you detailed information about IPOs through its Space app/web.
· Log in to Space app/web (space.jainam.in) using your log -in Id, password and PIN.
· Select IPO.
· You can now see different status related to IPO’s: -
i. Open IPO
ii. Upcoming IPO
iii. Closed IPO
2. How to apply for an IPO using UPI?
· An IPO application can be submitted using any UPI application through Jainam broking limited from:
i. Space app
ii. Space web
· There are no charges on applying for an IPO through Jainam.
· Visit www.npci.org.in/what-we-do/ipo/live-partners to know the supported UPI apps.
· PROCESS TO APPLY FOR AN IPO: -
i. THROUGH SPACE APP: -
To apply for an IPO from Space app, follow the given steps:
§ Open Space app
§ Enter user ID and password.
§ Enter PIN.
§ Tap on IPO.
§ Enter client code.
§ Tap on Apply after choosing your desired company from list of ongoing IPO’s.
§ Select investor type.
§ Select Lot size by using + and – icons.
§ Enter the bid price.
- the price should be between the issue price mentioned or
- Click the checkbox to enter max. price or cut-off price.
§ Tap on Continue.
§ Enter your UPI ID.
§ Tap on undertaking tick box.
§ Tap on Apply.
§ Tap on Continue.
§ Accept the mandate on the UPI app.
(SCREEN RECORDING)
ii. THROUGH SPACE WEB: -
To apply for an IPO through Space Web, follow these steps: -
§ log in to https://space.jainam.in
§ Click on IPO.
§ Click on IPO dashboard
§ Ongoing IPO’s will be shown under the heading IPO Window. Choose the desired company and click on Bid.
§ Select Investor type
§ Enter Client code (or client name, UPI id and bank details).
§ Select Lot size by using + and – icons.
§ Enter the price.
- the price should be between the issue price mentioned or
- Click the checkbox to enter max. price or cut-off price.
§ Click on the undertaking checkbox.
§ Click on Submit.
§ Accept the mandate on the UPI app. The UPI mandate can be accepted until 5 PM on the closing day of the IPO.
(SCREEN RECORDING)
3. How to apply for an IPO without using UPI?
· An IPO application can be submitted through NET BANKING ASBA service offered by the bank, even without using UPI.
· The required details for the application are as follows:
i. Demat ID: Demat Id is a 16-digit unique number used to identify a demat account for every client. The demat ID can be found by visiting
ii. Depository: CDSL.
iii. DP Name: Jainam broking ltd.
Ø SUGGESTION: - Jainam suggests using the UPI based ASBA process to apply for IPOs using Space, as all the client details are already mapped there and the client need to enter only his UPI ID, lot size and the bid price.
4. How to place bids in the IPO application through Jainam?
· Bids in the IPO application can be made by selecting the lot size while placing the order. Lot size/ Market lot is the minimum count of shares which an investor can apply for in an IPO.
· Bids (only 1 bid) can be made at any price between the price range.
· For example: - For an IPO market lot is 250 and price range is 151 – 155.
- If the market lot is 250 then, the bidder has to bid for minimum 250 shares (i.e., 1 lot) and can bid for its multiple only as: 500 shares (2 lots), 750(3 lots) and so on.
- If the price range is ₹ 151 – 155 then, the bidder can place bid at any price between 151 to 155. Cut off price is the maximum issue price
(i.e.,155).
- Now, if the listing price is declared at ₹ 154 then, those bidders who had made application at price upto ₹ 151 and 152 will not get any allotment. Allotment will be made only to those applicants who have bidded at ₹ 153 and ₹ 154(cut off price).
- To know more see, How to apply for an IPO?
5. When can IPO orders be placed through Space Jainam ?
· From IPO open day : -All the orders for an IPO can be placed from the day its open from 10.00 a.m.
· During the IPO period: -
- Orders can be placed at any time on Space app or web .
- Investors can place a bid for IPO shares any time in 24 hours i.e., even after the market closes.
- Orders placed after market closing time will be forwarded to the exchange on the next business day after 10 a.m.
· On the last day of IPO: -
i. Retail investor: - The retail investor should place his bid before 4.30 p.m. on IPO closing day. So that, he can also accept the mandate before 5 p.m. and can successfully complete the applying process.
ii. HNI investor: - The HNI investor should place his bid before 4.00 p.m. on IPO closing day.
ü RELATED FACTS: -
- For Net banking ASBA: - Many banks have their own cut – off times for ASBA IPO applications on the last day. (usually, banks allows only until 2 to 3 p.m. on the last day).
ü SUGGESTION: -
-
6. Are there any charges to apply for an IPO through Jainam?
There are no charges to apply for an IPO through Space Jainam.
To know more see, how to apply for an IPO.
7. How to select the category while applying for an IPO through Space?
· Following types of categories are usually there for on IPO in Space:
i. Individual Investor: - for resident and non- resident Individuals and HUF’s.
ii. Shareholder: - if shares are issued at discount for existing shareholders.
iii. Employee: - if shares are issued at discount for employees.
iv. Policy Holder: - if the company issuing shares is an insurance company and is issuing shares to existing policy holders.
· The investor can choose his category accordingly.
8. How to apply for an IPO in the EXISTING SHAREHOLDER category?
· To make the application be successfully considered for allotment, ensure that the prerequisite number of the shares are already held in the Demat account.
· Applying in the shareholder category is the same as the general process.
· However, the investor type should be selected as Shareholder while applying through Space app or Web.
(screen shot)
ü RELATED FACTS?
- The eligibility criteria for applying in the existing shareholder category are specific to each RHP(Red Herring Prospectus).
- The RTA (Registrar and Transfer Agents) verifies if at least one share of the parent company was held on the day the RHP was filed.
9. How can an NRI apply for an IPO?
- If NRE/NRO bank account is linked to a UPI: - As long as the NRE/NRO bank account is linked to a UPI, the procedure for applying for an IPO is similar for a resident individual and a NRI through Space app.
- If NRE/NRO bank account is not linked to a UPI: -In such a case, the NRI can apply for an IPO through ASBA.
10. Can a MINOR apply for an IPO through Space Jainam?
Yes, minor can also apply for an IPO through Space Jainam provided ha have his own PAN card and Demat account.
11. What is retail and HNI category?
12. Can an IPO be applied under the HNI category?
· IP applications ranging from ₹2 lakhs to ₹5 lakhs are categorized as HNI (High Net-worth Individual). For amount upto ₹5 lakhs UPI can be used and for amounts exceeding ₹5 lakhs ASBA have to be used.
· There’s no specific selection to apply for an IPO in the HNI category. Both retail and HNI category comes under same category of Individual Investors under Space app/web. Instead, any bid greater than ₹2 lakhs is automatically considered HNI.
· HNI’s are not allowed to bid at the cut -off price. However, he can manually enter any price from the price range including maximum price.
· The window for HNI category IPO applications closes at 4:00 PM on the final day of bidding.
· The applications under HNI category (> ₹ 2 lakhs) cannot be cancelled later on.
· According to SEBI IPO regulations, applications under the HNI category cannot be deleted or modified to decrease the application size however, the application can be modified only to increase its size.
· For instance, an application of ₹4 lakhs can be modified to ₹4.5 lakhs but cannot be reduced to ₹3 lakhs.
13. Is it possible to apply for an IPO in both the shareholder and retail categories through space Jainam?
· Yes, an individual can submit an application for an IPO in both the shareholder and retail categories using the same demat account as long as it is not prohibited by the company in the Red Herring prospectus.
· However, only one active IPO application can be made by selecting the desired category through Space Jainam.
· It means, if an application has already been submitted through space application from one category and an individual wants to apply for the IPO in another category then, he has to apply again and then select another category.
ü RELATED FACTS: -
- Space Jainam supports IPO applications up to ₹ 5 lakh for each category, while ASBA can be used for higher amounts.
- If an application has already been submitted through Jainam for one category and an individual wants to apply for the IPO in another category, they he can also use net banking ASBA.
14. How to apply for SME IPO through Jainam?
· To find the current and upcoming SME listings, visit:
- NSE( https://www.nseindia.com/market-data/all-upcoming-issues-ipo)
- BSE (https://www.bsesme.com/PublicIssues/PublicIssues.aspx?id=1)
· Jainam facilitates applying to SME IPOs issued through BSE in the same manner as other IPO. Applicant can apply through UPI ASBA process with Space app/web.
To know more see, how to apply for an IPO?
· For NSE SME IPO branch and sub broker have to provide data in an excel sheet to Jainam for doing manual bidding.
15. How to download BSE and NSE SME IPO forms?
· For the purpose of filling ASBA IPO application for NSE and BSE SME IPO’s, application form can be downloaded from the links given below: -
- NSE SME IPO forms: -
- BSE SME IPO forms: -
· Applicant can: -
- download and print out the form
- Fill it manually and
- Submit it to his bank.
16. What is Real Estate Investment trust (REIT) and how to invest in REIT IPOs through Jainam?
· Real Estate Investment Trusts (REITs): -
REITs are like mutual funds for real estate investment. Investors pool their money, and a REIT invests in commercial properties. Returns come from rental income and property value appreciation.
To learn how REITs can be used in the investment portfolio, visit https://www.reit.
com/.
· Applying REIT through Jainam: -REIT IPOs can be applied on Space app and web like any other IPO only.
To learn more see, how to apply for an IPO.
s
· Things to note before Appling for REIT IPO: -
- The Retails investor category is not available for this IPO and you will be able to make an application only in the Non-Institutional Investor (NII) Category.
- Once Submitted, IPO Applications in the NII Category cannot be cancelled.
- The Bid can only be modified upwards.
- You can make application using UPI on Space for up to Rs. 5 Lakhs.
17. Can we apply for an IPO from a dormant A/c?
· IPO can be applied if the account is marked as dormant. However, stocks cannot be sold until the account is reactivated.
· To learn more see, How to reactivate the Jainam account?
18. What should I do if my IPO Id fails?
· There can be many potential causes for your inability to place your bid including extreme server problems.
· In any case, the applicant should reapply for the IPO through space before the application window expires.
19. Can I apply twice for an IPO from the same demat or PAN?
· No, one person cannot apply multiple times with same Demat/PAN for an IPO.
· The PAN number of the primary account holder in the Bank Account and Demat Account should be the same for valid IPO applications going forward.
· If an investor applies in an IPO though multiple applications with same Demat account or same PAN Number, his applications will be rejected.
20. Is IPO allotment is on first come first serve basis?
· No, the IPO allotment doesn't happen on the basis first come first serve basis.
· The allotment process totally depends on how the IPO got responses from the investors. If the IPO is undersubscribed, then the investor may get allotted all the lots for which they have applied.
21. Why is the listing date displayed on Space Jainam page is different from the actual listing date?
· The Space Jainam IPO page shows only a tentative listing date. The confirmed listing date is published by exchanges in a circular on their respective websites one day in advance.
- NSE – (WEB)
- BSE – (WEB)
· Therefore, there can be a difference between the listing date displayed on the Space Jainam IPO page and the actual listing date.
· If shares are allotted then, they will be credited one or two days before the listing date.
Ø ANNOUNCEMENT: -
- Currently, the time taken for listing of Securities after issue closing date is 6 working days i.e. (T + 6) days.
- But as per a SEBI circular after 31st December 2023, the timeline for listing of shares in public issue has been reduced from existing
T + 6 days to T + 3 days.
- All the companies issuing securities have to communicate their listing day in advance and thus, after application of T + 3 days timeline there will be no difference between Space IPO page date and listing date.
1. How to modify or cancel the bids in the IPO application?
- Any IPO application whether submitted or pending can be modified or cancelled till the IPO is open.
- PROCESS TO MODIFY OR CANCEL THE BID: -
i. THROUGH SPACE APP: -
§ Log in to space app on your phone.
§ Tap on IPO option
§ Tap on Order book
§ Select the application from the list
§ Tap on Modify and make required changes and submit.
or
§ Tap on Delete and submit.
(screen recording of both)
ii. THROUGH SPACE WEB: -
§ log in to https://space.jainam.in
§ Click on IPO.
§ Click on IPO dashboard
§ Bid History will show the list of all applications made.
§ Click on Modify after selecting the IPO application you want to modify or delete.
§ To modify: - Make required changes , click on checkbox and submit.
or
§ To Delete: - Click on delete icon shown in upward right side.
ü RELATED FACTS: -
- HNI investors (bid > ₹ 2 lakh) cannot cancel their applications.
- HNI investors cannot modify their application if it decreases the value applied.
- HNI can only modify the bid to increase the value of applications.
2. When can IPO orders be modified?
Modifications can only be made between 10.00 a.m. and 4.30 p.m. on trading days .
3. When to withdraw or delete an IPO application?
· The submitted IPO application can be modified or cancelled only between 10.00 a.m. and 4.30 p.m. on trading days.
· To know more see, how to modify or cancel the bids in the IPO application?
4. Why has the blocked amount not changed even when the IPO bid was modified?
· The blocked amount will remain unchanged till the latest mandate generated after modifying the bid is not accepted.
· As once a bid is modified, a notification with the latest mandates request is sent to the UPI app. The applicant needs to click on the authorize to approve the mandate, and then the funds will be blocked as per the modified bid.
screenshot
· The UPA mandate can be accepted until 5:00 PM on the closing day of the IPO.
· The application or mandate status with the application number can be verified one day after the bidding date by visiting the given link:
(ipobidverify.nseindia.com/products/dynaContent/equities/ipos/ipo_login.jsp)
1. What happens after a bid for IPO is placed?
The application flow work as given below: -
i. A bid is successfully placed by the investor through Space Jainam.
ii. The bid is then submitted to the exchange.
iii. The exchange will now send the bid to the bank via NPCI to get the mandate request on the UPI app.
iv. The IPO application will be completed when the UPI mandate is approved by the subscriber.
Now the company’s registrar will assess the application during the share allotment process. The shares assigned will be deposited in the demat account one or two days before the listing date.
2. When does the IPO mandate is generally received and how to know about it?
· If an order for an IPO is placed between 10:00 AM to 4:30 PM then, usually the mandate will be received on the same day while on the other hand if the order is placed after 4.30 p.m. then the mandate will be received in next working day.
· Generally, it takes around 1 hour to receive IPO mandate request however it may take maximum up to 24 hours.
· If the mandate request is not sent within an hour of successful application submission, it is advisable to delete or modify and resubmit the application
· Usually, an IPO Mandate request expires after 24 hours.
· The applicant can get to know about the mandate request through: -
i. Visiting the UPI app and going through the notifications.
ii. SMS received by the stock Exchange.
iii. SMS is also received by Space Jainam regarding to acceptance of mandate request.
iv. Space app also show this as Notification.
3. Why is there a delay in receiving the IPO mandate on the UPI app?
· After submitting the IPO application, the mandate request is sent by the National Payments Corporation of India (NPCI). The UPI mandate request should be approved before 5 pm of the issue closure date.
· There can be many instances related to mandate request as: -
i. IPO UPI REQUEST NOT RECEIVED: -
If the mandate request is not received within an hour of a successful application submission, it is advisable to delete and resubmit the application.
However, before re-submitting, check the following:
- If the correct UPI ID was entered.
- If the UPI app is updated to the latest available version.
- If the UPI app and bank support IPO bids. Visit npci.org.in/what-we-do/ipo/live-partners.
ii. IPO UPI MANDATE GET FAILED: -If the IPO UPI payment gets failed or the authorisation gets failed due to technical issues at the bank's end or with the UPI app. In such cases, cancel the original request and submit the new IPO application request.
iii. IPO UPI MANDATE EXPIRED.
ü RELATED FACTS: -
· If a client uses the wrong UPI ID or cannot receive a mandate request for any reason, they cannot delete their application. However, they can apply using Net banking ASBA. The application through net banking will still be considered unique and eligible for allotment since the UPI mandate step was not completed.
· Sometimes, it might take until the close of the day for the mandate to arrive, and the status may not reflect on Space. As long as the funds are held in the bank for a valid application, the registrar and transfer agent (RTA) will assess the bid for allotment.
4. How to accept the IPO mandate on UPI app as BHIM, Phonepe, GooglePay etc.?
· Every mobile banking application or UPI application will have their own steps to be followed for accepting the mandate.
· Log in to the respective app and find if there are any mandates for approval. Tap on Approve or Authorize tab and enter the password or PIN.
· Usually, a SMS or a notification in the app is sent by the UPI APP and investor can simply use that to find the mandates needing approval.
(apna vdeo bana sakte hai --- tutorial)
1. Who can apply for an IPO using the UPI ASBA route?
· Applying for an IPO using the UPI route is available only for individual investors.
· Investors can apply for an IPO using UPI payment mode only up to the amount of ₹ 5 lakh.
· Investor investing less than ₹ 2 lakh are known as retail investor while on the other hand, investor investing amount equal to and greater than ₹ 2 lakh but up to ₹ 5 lakh are known as HNI investors.
· An IPO application can be submitted through space web or space app using any UPI application.
· Visit www.npci.org.in/what-we-do/ipo/live-partners to know the supported UPI apps.
· There are no charges to apply for an IPO through Space.
2. How to create UPI ID for IPO application?
· UPI ID creation is a one-time process that can be done using any of the approved UPI payment apps like BHIM app, Gpay, Phonepe etc.
· Steps to create UPI ID for IPO: -
- § Download the desired UPI Payment Application like Paytm, google pay, Bhim etc.
- § Add the mobile number registered with your bank account.
- § Enter the login passcode.
- § Choose the bank name from the list where you have an account.
- § Set up the UPI PIN using the debit card details.
- § Enter the OTP received for validation and ATM PIN to authenticate the transaction.
- § Set up the desired UPI PIN.
§ The UPI ID gets generated by the app.
(apna video bhi bana sakte hai)---tutorials
3. Which apps are banks currently support IP applications through UPI ASBA?
· The list of apps and banks that support UPI IPO applications can be checked by visiting npci.org.in/what-we-do/ipo/live-partners.
· IPO bids can only be placed using UPI apps and handles of banks that support IPO applications.
· To learn more about applying for an IPO see,
- How to stay informed about ongoing IPO’s and upcoming IPO’s.
- How to apply for an IPO using UPI?
4. Why are some UPI handles not shown on the space IPO window?
· IPO bids can only be placed by using UPI apps and handles of those banks which supports IPO applications.
· The list of apps and banks that support UPI IPO applications can be checked by visiting npci.org.in/what-we-do/ipo/live-partners.
5. At Space Jainam, can IPO bids be placed only through the UPI ID linked to the primary bank account?
· For individual accounts: - using any bank's UPI ID in the applicant's name to apply for IPOs is possible.
· However, in the case of joint accounts: - the applicant must be one of the account holders in the bank account linked to space.
· Thus, it is not permissible to use UPI IDs of those bank accounts in which the applicant is not an account holder to apply for IPOs.
6. How to create BHIM UPI ID?
· A BHIM UPI ID can be created if a bank account has a mobile number and a debit card linked to it.
· The app can be downloaded from:
- Playstore by visiting the link given below:
play.google.com/store/apps/details?id=in.org. npci.upiapp&hl=en_IN&gl=US
- or from AppStore by visiting apps.apple.com/in/app/bhim-making-india-cashless/id1200315258.
· To learn about BHIM UPI registration, watch this video tutorial (WEB).
(apna video bhi bana sakte hai with voice over) - tutorials
1. When are funds unblocked by the bank if the IPO is not allotted?
· The funds are unblocked after the allotment of shares.
· However, certain banks will unblock the funds only after the mandate end date.
ü SUGGESTION: -A request could be made to the respective bank regarding to the release of the funds, at any time after the allotment; if the shares are not allotted.
· To check the mandate end date, visit space app and check IPO details.
(screen image with editing deni hai)
2. How does the allotment process work if the IPO is oversubscribed or under subscribed?
· OVERSUNSCRIBED IPO : - An IPO is said to be oversubscribed when the number of applications exceeds the shares available for allotment. In such scenarios, the registrar will conduct a lottery to allot shares to the applicants.
· UNDERSUBSCRIBED IPO: - An IPO is said to be under subscribed when the number of applications is less than the shares offered. In such scenarios, the registrar will allot shares to all of the applicants.
3. Where can we find IPO subscription data?
· IPO SUBSCRIPTION DATA: -
- This data is published on a regular basis by the stock exchanges where the IPO is being listed on their website on a real time basis.
- It refers to the number of shares that have been bid for by investors during the IPO subscription period.
- It also indicates the demand for an IPO.
- This is tracked separately for each investor category (Institutional, Non-Institutional, Retail, etc.)
· WHERE TO FIND IPO SUBSCRIPTION DATA ON NSE: -
To check the bids placed on NSE, follow the following steps:
i. Visit nseindia.com/market-data/all-upcoming-issues-ipo.
ii. Select the IPO.
iii. Click on NSE Bid Details or Consolidated Bid Details from the drop-down menu under Category.
· WHERE TO FIND IPO SUBSCRIPTION DATA ON BSE: -
To check the bids placed on BSE, follow the following steps:
i. Visit bseindia.com/publicissue.html.
ii. Select the IPO.
iii. Click on BSE Bid Details or Cumulative Bid Details.
(video dena hai)
4. Who is RTA (Registrar and Transfer Agents) and how to know about RTA of any issue?
· REGISTRAR AND TRANSFER AGENTS (RTA) : - RTA are separate entities registered with SEBI that provide services related to share registry maintenance and share transfer activities on behalf of companies that have issued shares to the public.
· Functions of RTA: -
i. Collecting the issue applications from investors .
i. Keeping a record of the applications and money from investors or paid to the seller of the securities.
ii. Assisting the corporate body:
a) To determine the basis of allotment of securities in consultation with the stock exchange.
b) Finalising the list of persons entitled to the allotment.
c) Processing and dispatching of the allotment letters, refund orders or certificates, and other related documents regarding an issue.
· HOW TO KNOW THE DETRAILS OF RTA: -
Ø RTA registered with NSE: -
i. Visit nseindia.com.
ii. Search for the company
iii. Click on Corporate Information
iv. Click on company Directory and then Transfer Agent Details.
(screen recording of both)
Ø RTA registered with BSE: -
1. Visit bseindia.com.
2. Search for the company.
3. Click on Corp Information and scroll down to find the registrar's details.
5. Why is the IPO allotment status not available on the RTA ‘s portal?
· After the IPO window closes, the Registrar (RTA) verifies the applications to allocate shares and publishes the records on their website.
· Sometimes, the RTAs may not display unallotted applications on their portal and may instead show one of the following errors:
- No Records found
- PAN not found
- Bid not found
6. Why are the shares credited for an IPO bid are not visible on Jainam pro and spark even after getting confirmation from the CDSL?
· The confirmation email received from CDSL is only for the purpose of informing that shares are being credited to the demat account.
· The shares will reflect in Jainam Pro And Spark only after they are listed. If the shares have been allotted, they will be credited to the demat account before the listing date, but the stock price will be displayed as NA on the listing day until it is determined.
7. What does cut - off price means?
· The price at which shares are finally issued to investors in an IPO is known as the cutoff price.
· Cut - off price can be any price within the specified price band during a book building issue. For example, if the issue price range is ------then cut off price can be any price between----
( screen shot dena hai of price range of an ipo)
· However, at the time of the applying to an IPO;cut off price is usually referred as the maximum price at which one can bid.
· If an investor bids at maximum price or cut off price then:-
- He cannot bid at any other price and
- He will become eligible for allotment at any issue price discovered through the book-building process.
( screen shot dena hai of cut off of an ipo)
· SUGGESTION: - It is always advisable that an investor invest or bid at the cutoff price.
· NOTE: - HNI (who bid> ₹ 2 lakh) cannot bid at cut off price.
8. Why is the average cost for the shares allotted in an IPO is not displayed?
( comet se related answer is pending)
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