How to Apply for an IPO Online Through Your Demat Account

By Emily, Correspondent  |  Monday, 01 September 2025, 11:55 Hrs


How to Apply for an IPO Online Through Your Demat Account

Investing in an IPO (Initial Public Offering) provides an opportunity to buy shares in a private company as it becomes public. Applying for an IPO through a Demat account is safe, clear and easy, with no need for any physical documents.

This article will explain how to open a Demat account online, so you can participate efficiently in IPO offerings from the comfort of your home.

Understanding the Fundamentals of IPO and Demat Account

Before jumping into the IPO application process, you must understand the key terms IPO and Demat account.

IPO (Initial Public Offering): An IPO is a process through which private companies collect capital by offering shares to the public for the first time. The number of shareholders is limited by those companies' regulations, so people remain obligated to become shareholders when the companies raise capital. Then they approach stock exchanges like NSE (National Stock Exchange) and BSE (Bombay Stock Exchange) for their listing, and it will help them convert into a public limited company.

Demat Account (Dematerialisation Account): It's an online account that includes financial securities of the public, such as shares, bonds, and mutual funds, in an electronic format. This account eliminates the need for a physical share certificate. This Demat account is mandatory to apply for IPOs.

Applying IPO Online with Demat Account: Step-by-Step Guide

Here is a step-by-step guide for applying for an IPO online with a Demat account.

Step 1: Ensure You Have a Demat Account

To apply for an IPO you must have a Demat account. If you don't have one, you must open Demat account with a depository participant (DP). They are the intermediaries who offer Demat account services for the investors. Some popular DPs in India are Kotak Securities, Zerodha, Angel One, etc.

Now here is the entire process about how to open Demat account online -

First, research about DPs (Depository Participant) and select one that's suitable for you.

Then fill out an online Demat account opening application form through the DP's website.

Then complete the KYC verification process.

Once your application becomes verified, the DP will activate your Demat account. So, you will receive your account details such as client ID.

Step 2: Get Informed about Upcoming IPOs

After activating the Demat account, you must be aware about the upcoming IPOs. You can obtain the latest updates about IPOs from several resources like IPO registrar's website, SEBI (Securities and Exchange Board of India) website, financial news websites, and Depository Participant’s website or trading platform.

Specifically, you should pay attention to the IPO dates, the number of shares offered, the issue price or price band, etc.

Step 3: Log in to the Online Platform of your DP

Now log in and access your DP's online trading platform through your client ID and password.

Step 4: Navigate to the IPO Section

Then you have to apply for the IPO. So, you should look for options like 'Apply for IPO', 'IPO', 'Public Issues', or find similar terms in the main menu. Otherwise, you can find IPO terms under the 'Trade' or 'Invest' section.

Step 5: Select Your Target IPO

At this stage, you will find a list of IPOs that are currently open. Next, click on the IPO you are interested in. Also, check the details before applying to it.

Step 6: Fill in the Application Details

Now fill up these details of the online IPO application form. These include:

  • Number of shares
  • Type of investor
  • Demat account details
  • PAN details
  • Bid price
  • Payment details

Step 7: Utilize the ASBA Facility for Payment

ASBA (Application Supported by Blocked Amount) is the most convenient and secure method for applying in IPOs. Through this method, the application money becomes blocked in your bank account until the shares are allotted. In case if you don't receive any allotment, your money will be returned back to your account.

Step 8: Review and Submit Your Application

Now, cross-check the details you have filled in your application and ensure everything is correct. Finally submit your application.

Step 9: Acknowledgement and tracking

After the successful submission of your application, you will receive an acknowledgement email or message containing an application reference number. This number will help you to track the IPO application.

Eligibility Criteria for IPO Application

  • Demat and trading account with a recognized DP.
  • Having a PAN card is mandatory.
  • You must be an approved investor under the SEBI guidelines.
  • A bank account linked with a Demat account.
  • Ensure there is adequate fund to cover the IPO application.

Benefits of Online IPO Application through a Demat Account

  • Time-saving
  • Interest on funds
  • Direct access
  • Versatile investment opportunities

Conclusion

Applying for an IPO is no longer time-consuming work. Thanks to the Demat account and digital payment systems. So, open a Demat account and activate it. Then follow the upcoming IPO updates and steps for opening an IPO and link to your savings account. With due diligence and careful application, an IPO becomes a top-notch solution to grow your wealth and participate in the Indian stock market.

 

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