If you are about to open a demat account, you should learn how to invest in initial public offerings (IPOs) because you can generate a considerable return by doing so. For example, you can make listing gains if the shares get listed at a higher price than the IPO issue price. In this case, you can sell the shares the very day they get listed.
Or, if you think a company has solid growth potential, you can stay invested in an IPO for a long time and earn a return as the share price increases over a period of time. But, do you know that you can use a demat account app for your IPO investments?
In the last few years, many brokers or depository participants have launched trading apps that can help investors manage their investments, including IPO, using their mobile phones. So, let us learn how to do it.
Want to Make IPO Investments? Learn How to Use Your Demat Account App for It:
- To use a demat account app, you need to first open a demat account with a broker. If you want to use a mobile app for most of your trading, you need to research and find the best trading apps before opening a demat account.
- After you open a demat account, you should download your broker’s mobile app.
- To bid for an IPO, you must keep enough funds in your demat account.
- On your broker’s demat account app, you should find the IPO section. Find out the IPO you want to bid for. Then, you should choose the number of lots you intend to bid.
- Now, you should provide your UPI ID and then accept the request in the UPI app.
- What if you feel like changing your mind after accepting the request in the UPI app? In that case, you can change, discontinue, or withdraw your IPO bids. To do this, you will have to contact your broker.
- After you have submitted an application to subscribe to an IPO, you will receive the details, like, the IPO application number, etc.
- Based on the bids you have placed and an IPO’s issue price, if on the allotment day, you are able to get the shares allotted, they will be automatically deposited in your demat account. Imagine with an app, you can do all this seamlessly with great ease.
- But, it can also happen that you are not allotted any shares on the IPO allotment day. In that case, you will be sent a refund in your bank account of the amount you had deposited.
By following the steps explained above, you can easily make IPO investments through one of the many demat account apps available in the market. For example, you can download the online trading app of Bajaj Broking which provides the necessary features to help you make IPO investments seamlessly.
Before selecting an app, you should figure out whether it has a user-friendly interface or not. If it does not have an easy interface to navigate, it may make it difficult for you to execute transactions. On this count, Bajaj Broking’s app excels because it has an extremely easy interface to navigate.
As we discussed earlier, it is possible that you make an investment in an IPO for the long term. In other words, you stay invested in it for many years after it gets listed. In that case, you will need stock analysis tools and research reports to analyse the stock, which Bajaj Broking’s app provides.
Conclusion
Using a demat account app to make IPO investments can be handy, provided you have selected an app that provides you with all the features you need. Before signing up with a broker, do check the features his app provides and his charges, like brokerage fee, etc.
Read Also: The Importance of Regularly Reviewing Your Demat Account Holdings