How to Apply for IPO in Groww?

The Initial Public Offering (IPO) market can be an exciting opportunity for investors. If you’re interested in participating in an IPO with Groww, this guide will walk you through the process, ensuring a smooth experience.

Requirements to Apply for IPO in Groww

• Groww Demat Account: You’ll need a Demat account with Groww to hold the IPO shares you apply for. If you don’t have one, you can easily open one through Groww’s platform.
• Active UPI App: For a faster and more convenient application process, Groww leverages the Unified Payments Interface (UPI). Ensure you have an active UPI app linked to your bank account.

Steps to Apply for IPO in Groww

1. Find the IPO: Log in to your Groww account (mobile app or website) and navigate to the “IPO” section. Here, you’ll find a list of upcoming and ongoing IPOs.
2. Select and Apply: Choose the IPO you’re interested in and click “Apply.”
3. Enter Bid Details: Specify the number of shares you want to bid for and the price you’re willing to pay per share. Remember to check the minimum bid amount required for the specific IPO.
4. UPI ID and Approval: Enter your UPI ID and click “Submit Bid.” Within a few hours, you’ll receive a mandate request on your UPI app. Approve the request to authorize the blocking of funds for the bid amount.

Important Notes

• UPI for Retail Investors Only: Groww’s UPI integration is currently limited to retail investors applying for IPOs with a value under ₹2 lakhs.
• ASBA for HNIs and Non-UPI Users: If you’re a High Net-worth Individual (HNI) applying for an IPO exceeding ₹2 lakhs or don’t have a UPI app, you can use the ASBA (Application Supported by Blocked Amount) facility. ASBA allows funds to be blocked in your bank account only if your IPO application is successful.
• Groww’s Resources: Growwshare offers additional resources to help you navigate the IPO process. You can explore their website’s IPO section for detailed information on upcoming offerings and FAQs, or contact their customer support for further assistance.

Benefits of Applying for IPOs on Groww

1. Convenience and Speed: Groww’s online platform allows you to apply for IPOs from anywhere with an internet connection. The UPI integration streamlines the process, eliminating the need for manual paperwork.
2. Accessibility for Retail Investors: Groww caters specifically to retail investors by offering IPO applications under ₹2 lakhs through UPI. This opens doors for a wider audience to participate in the IPO market.
3. Seamless Transaction with UPI: By leveraging UPI, Groww ensures a faster and more secure transaction process for IPO applications. You can approve the bid directly on your trusted UPI app.
4. Demat Account Integration: Groww seamlessly integrates your Demat account, allowing for easy crediting of IPO shares if your application is successful. This eliminates the need for separate account management.
5. Resources and Support: Groww provides informative resources on their website about upcoming IPOs and a dedicated support team to assist you with any questions you might have throughout the application process.

Risks of Applying for IPOs on Groww

1. Market Volatility: IPO stocks are inherently risky. The company is new to the public market, and its future performance is uncertain. Stock prices can fluctuate significantly after the IPO, potentially leading to losses.
2. Oversubscription and Allotment: Many IPOs receive a high volume of applications. If the demand exceeds the available shares (oversubscription), there’s a chance you won’t receive any shares even if you apply.
3. Listing Price Uncertainty: The IPO price is often set based on estimated future value. There’s no guarantee the stock will list (begin trading) at or above the IPO price. You could end up buying shares at a price higher than their actual market value.
4. Limited Liquidity: Newly listed IPOs often have lower trading volumes initially. This can make it difficult to sell your shares quickly if you need to exit the investment.
5. Dependence on Groww’s Platform: While Groww offers a convenient platform, you’re reliant on their technology and processes for your IPO application. Any technical issues or errors on their end could potentially impact your application.

By following these steps and keeping the limitations in mind, you can leverage Groww’s platform to participate in IPOs and potentially expand your investment portfolio. Remember, IPOs can be volatile, so conduct thorough research before investing.