IPO explained by AsthaTrade
The process of IPO is expected to be lengthened and complicated. Even if you want to fill the documents, you need to go through several levels. The first document which gets filled in the draft offer documents with SEBI and thereafter the final offer documents after encompassing changes and corrections are filled with the Registrar of Companies (ROC). The company is mandated to file the final documents with the ROC before the opening of the issue. Now, to go through the process we must need to understand how to apply for an IPO?
How to go with the process of applying an IPO?
● The first thing to start the process has to begin with the opening of your Demat cum trading account.
● The allotment of an IPO will only be done in the Demat form.
● While the trading account is not compulsory for an IPO, it is needed if you want to sell the IPO.
● IPO applications can be made offline using physical forms or online through your internet trading account.
● One of the important aspects of the IPO application procedure is that you need to know what is the ASBA process?
● Applications Supported by Blocked Amounts (ASBA), is the process authorizing the bank to block money in your bank account.
● When an ASBA application is brought about for the IPO, the amount is not debited but only blocked. That means it continues to earn interest.
● On the date of allotment, only the amount to the duration of the allotment is debited to your account and the balance freeze discarded.
IPOs that are expected in the coming months
Let’s have a look over the forthcoming IPOs, yet to come.
o National Commodity and Derivatives Exchange (NCDEX) Ltd.
o Stove Kraft Ltd. (Pigeon Appliances)
o ESAF Small Finance Bank Ltd.
o UTI Asset Management Ltd.