In recent years, Initial Public Offerings (IPOs) have become a popular method for companies to raise capital in the Indian market. For investors, participating in an IPO offers the potential to invest early in a company with high-growth prospects, often leading to substantial returns. However, after submitting your application, the next crucial step is tracking the IPO status. This article delves into how you can perform an IPO status check, and also explains the process and considerations for canceling your IPO application in case you change your mind.
Understanding IPO Status Check
After submitting your application for an IPO, you may find yourself eager to know whether your application has been accepted and whether you’ve been allotted shares. Investors typically perform an IPO status check to acquire this information.
1. Registrar’s Website:
One of the primary ways to check your IPO status is through the registrar’s website. Registrars like Link Intime India and KFin Technologies are usually responsible for IPO allotments.
– Step-by-Step Process:
* Visit the registrar’s website.
* Navigate to the ‘IPO’ section.
* Select the ongoing IPO for which you’ve applied.
* Enter the required details such as application number, PAN, or DP Client ID.
* Click the ‘Submit’ button to view your status.
2. Stock Exchange Websites:
Both the Bombay Stock Exchange (BSE) and National Stock Exchange (NSE) provide facilities for tracking IPO status.
– BSE IPO Status Check:
* Visit the BSE website.
* Click on ‘Status of Issue Applications’
* Enter the relevant details like application number and PAN.
* Click ‘Submit’ to view your status.
– NSE IPO Status Check:
* Visit the NSE website.
* Navigate to the ‘Equity’ section and select ‘Issue Information’.
* Enter ISIN details, your application number, and PAN.
* View your IPO application status.
3. Brokerage Platforms:
Many brokerage platforms like Zerodha, Upstox, and ICICI Direct also provide the facility to track IPO status within their portals.
IPO Allotment Calculation
Once the IPO is oversubscribed, it goes into a lottery system-based allotment. Here’s a simplified example using INR for a better understanding:
Imagine Company XYZ’s IPO sets out to raise INR 500 crore through 50 lakh shares at a face value of INR 100 per share. The IPO gets an overwhelming subscription of orders worth INR 2000 crore, which means it is oversubscribed four times.
If you applied for 100 shares worth INR 10,000 (100 x 100), the allotment process would put you in a lottery system where your chances are 1 in 4 because the IPO is four times oversubscribed.
How to Cancel IPO Application
At times, after submitting the IPO application, you might reconsider your investment. Here’s how to cancel IPO application:
- Online via ASBA (Applications Supported by Blocked Amount):
– Net Banking:
* Log in to your bank’s net banking portal.
* Go to the ASBA section.
* Locate your recent IPO application.
* Select the application and click on the ‘Withdraw’ or ‘Cancel’ button.
* Confirm the cancellation.
- Offline through Bank Branch:
– Visit the bank branch where you submitted your application.
– Fill out a cancellation request form provided by the bank.
– Submit the form along with any required identification.
Refund Process
Once you cancel your IPO application, the refund process will begin. The funds will be unblocked in your bank account used for ASBA transactions. This usually takes about 2-3 business days. If you invested INR 20,000 for the IPO, expect to see this amount back in your account once the cancellation has been processed.
Conclusion
Tracking your IPO status and knowing how to cancel your application are essential steps to follow after the IPO submission. Having a clear understanding of these processes ensures you remain informed and in control of your investments. While investing in IPOs can be an exciting opportunity, it is important to make well-informed decisions.
Disclaimer
Trading and investing in the Indian stock market involves various risks. Investors must gauge all the pros and cons before making any trading or investment decisions. Always consult financial advisors or conduct thorough research on your own.
By following these guidelines, you can effectively manage your IPO applications and maintain a disciplined approach to your investing journey.
