Can a normal person buy IPO?

1. Set Up Your Investment Accounts: To participate in an IPO, establish a Demat account for holding shares and a trading account for buying and selling. These accounts can be opened with a bank, broker, or financial institution offering IPO services.
2. Ensure KYC Compliance: Complete the Know Your Customer (KYC) verification process with your broker or Depository Participant (DP). This step is mandatory for all financial transactions in India.
3. Connect Your Bank Account: Link your bank account to your Demat account to simplify fund transfers for IPO applications and share transactions.
4. Choose a Reliable Broker: Select a broker or financial institution with a solid reputation for customer service and IPO investment options. Like Groww, Zerodha, Upstox etc… They’ll guide you through the IPO process and assist with applications.
5. IPO Research: Before applying, thoroughly investigate the company’s financial performance, business model, future plans, and management team. This research will inform your investment decisions.
6. Verify Eligibility Criteria: Check if you meet the IPO’s eligibility criteria, including age restrictions, PAN card requirement, and residency status.
7. Submit Your IPO Application: During the subscription period, apply for the desired IPOs through your broker’s platform or an online IPO application portal.
8. Allocate Application Funds: Reserve the necessary funds in your bank account to cover the IPO application cost. These funds will be temporarily held until the allotment process is completed.
9. Wait for Allotment Results: After the subscription period ends, the company will announce share allotments to successful applicants. You’ll be notified if you receive shares.
10. Complete Payment for Allotted Shares: If allotted shares, make the payment within the specified time frame. The funds blocked earlier will be used for this purpose.
11. Decide on Holding or Selling: Upon receiving allotted shares, decide whether to keep them for the long term or sell them on the stock exchange, based on your investment strategy and market conditions.
12. Monitor Investment Performance: Keep track of how your IPO investments are performing and make decisions based on your overall portfolio strategy.
13. Seek Professional Guidance: If you’re a new investor, consider consulting a financial advisor for personalized advice on IPO investing. They can help assess your risk tolerance, select suitable IPOs, and develop a sound investment plan.