How To Buy IPO in Zerodha Kite Online - IPO कैसे खरीदें ? - YouTube

Press the bell icon while subscribing

so that you get the notification of the latest finance video.

Namaskar, my name is Mukul, and welcome to Asset Yogi.

Before starting this video, I would like to congratulate and thank you all

Because we completed 1 Million subscribers on the Asset Yogi channel.

Which is a great milestone for any YouTuber

And our gold play button is coming soon

With this, I would like to announce that we'll have our first meet-up very soon.

Many times you all said that you want to meet or talk to me on a phone call

So this will be a great opportunity

where we all can meet and do some questions and answers.

For that, follow us on Instagram and Facebook.

Let's get back to this video. What are we going to discuss in this video?

There are many IPO's lined up in 2020.

There are many IPO's and people don't know how to invest in these.

So in this video, we'll see step by step.

I'll show you a live demo

And we'll take SBI Cards IPO as an example which opened today

And you can apply for any upcoming IPO similarly.

We'll be doing it in Zerodha because I use it personally

and I find its interface easy that's why I use it

Otherwise, there are many brokers through which you can apply through UPI.

Earlier you needed to apply by going to a designated bank

But today you can do it through any of your brokers.

In fact, it can be applied through Upstox as well but in that case,

You have to fill in your DP and Client Id whereas you can directly apply through Zerodha.

And by chance, if you haven't opened a D-mat and trading account then open it

You'll get the link to Zerodha in the description.

Through this, we can apply for an IPO online.

In fact, if you want to trade and invest in shares, then also you can do it.

For that, I made a separate trading tutorial and you can watch that video.

We also made a video on how to open an account in Zerodha

so you can watch that too.

You'll get all these links in the description.

And at the end of this video,

I will be sharing my personal throughs on IPO about how I treat that investment.

So stay tuned with this video till the end.

So if you want to apply online for any IPO with your stock broker,

It's important to keep a few things in mind

Once we applied for the IPO, there's no guarantee that we'll get an allotment.

If the number of subscriptions are more

For example, if 1 crore shares of SBI CARDS are available,

But maybe the applications received are for 10 crores

In this case, shares will not be allotted to everyone

And how this share allotment process is done?

I made a dedicated video on this so you can watch that.

Besides this, you have to check what is the minimum lot size.

In IPO, it's not like you can buy 1-2 shares

There is a minimum allotment here.

For example, in SBI CARDS, the minimum allotment is 19 shares.

So either you have to buy 19 shares or in multiples of 19.

So 1 lot = 19 shares and if you bid for 1 lot,

The maximum you'll be allotted is 1 lot

and maximum lots for which you can bid will be decided by the maximum limit of the category

Which is Rs. 2 lakhs.

So below Rs. 2 lakhs, how much maximum number of lots can you buy?

So if you'll count the multiples of 19, you'll get 13.

That means the maximum you can buy is 247 shares.

So now the question arises that if you applied for 13 lots,

will those be allotted to you?

No! It's not like that.

As I told you before if shares are oversubscribed,

For example, in the case of SBI CARDS, chances are very high

because people have a high interest in these kinds of companies

So oversubscription is possible. And when this issue arises,

not everyone can get their allotment and it becomes a lucky draw.

So we discussed what is the minimum and maximum quantity we can bid

In fact, in the end, we'll talk about how to increase the probability of allotment of shares.

But before that, let's understand some more things.

We have to check that for how many days the issue is open

Because it shouldn't happen that our application is not submitted.

So apply as soon as possible for it as it gets opened because if you did any mistake,

You would have time to revise it.

So we have to check the open and close dates.

For example, in the case of SBI CARDS, the open date is 2nd March, which means today

And the last date for retail investors is 5 March

So you can apply till 5 March maximum.

Besides this, one more thing to check which is in fact very important is Price.

Nowadays price is given in a band because most issues are driven by Book Building Process

And I made a detailed video on the Book building process, so you can watch that.

So the price here in the case of SBI CARDS is 750-755

That means the final offer price will be decided in between this range.

And the range is not much in the case of SBI CARDS

Because book running lead managers think that this valuation is very accurate.

Once we placed our bid, they are evaluated for some time

So in the case of SBI CARDS, they will be evaluated till 11th March

and finalization will be done about the final offer price.

On 12th March, refunds will be initiated to all those who didn't get the allotment

And shares will be transferred in the D-mat accounts to those who have been allotted the shares.

Now when you got the shares in your D-mat account and now if you want to sell those shares

For that, obviously listing of those shares is important

And where that listing is done?

Obviously in the stock exchange.

In the case of SBI CARDS, it is going to be listed in both NSE and BSE.

So if you bought this share at Rs. 755 and it got listed at Rs. 900,

So you are in a profit of Rs. 145 per share.

So the date of listing is 16th March.

So we discussed that what all things to keep in mind before applying for an IPO.

Now let's watch a quick demo that how to apply it.

So first of all, I'll open the Zerodha Kite application

through which you can buy/sell shares with your mobile phone

And I did a detailed video on how to buy/sell shares so you can watch it.

For now, we'll talk about IPO only

So let me open the Kite app

Firstly, you need to enter your pin here so let me do that.

So this is the interface you get

The watchlist is here but we have to go to profile.

As you click on that, scroll down and you'll see 'Console' option.

Click on console and you'll see this interface

Click on the top right-hand corner and we get an option of 'portfolio'.

On clicking on portfolio, we get the IPO option

And it's clearly written here that the 'IPO window will remain open from 10 am to 5 pm on trading days'.

So the open IPO in the upcoming IPO's is SBI CARDS.

So let's place our bid here and the minimum quantity written is 19

which is the lot size about which we already discussed

The price range is 750-755 so let's click on bid

First of all, enter your UPI Id so let me type that.

After UPI id, you have to select investor type

Individual investor or if you're existing shareholder of the parent organization

In the case of SBI CARDS, it is SBI.

So if you already have shares of SBI, you can click on the existing shareholder category.

I am applying as an individual investor because I don't have any SBI shares.

Scroll down and we have quantity here.

You can type 1,2,3,4 any number of lots

But I'm going to discuss that if we want to increase our probability of allotment,

Then how to do that.

For the time being, I'm entering 1 lot

that means 19 quantity and I want to increase the probability,

I'll click on the cutoff price. What is the cutoff price?

The final price decided by the company is the cutoff price.

So your probability will be increased if you'll choose the cutoff price.

And if you want to be ensured, you can select the highest price available.

You can select Rs.755 which is the highest amount

So there also you can ensure your allotment.

However, there's not 100% surety, and only probability increases.

Luck is also important here because if shares are oversubscribed,

Then it's not necessary that we'll be allotted the shares.

So I entered the quantity but you can also enter different quantities and prices.

You have 3 options here but I am showing one option.

If you want to place different prices for different quantities

Let's say 19 quantities at 754, 19 at 753, then at 752.

But as I told you, if you want to get ensured,

Either select cutoff price or select the highest price

Then only you can be ensured or increase the probability of allotment.

After that, scroll down and checkmark all these, and the amount payable is Rs. 14,345.

In one of my old videos, I discussed that the minimum lot size is kept in a way that

The minimum investment of any person should be between 10,000-15,000.

So here also, the investment is of Rs. 14,345 and now submit.

So now my application is sent by Kite application

and now the last step is to accept UPI payment from the bank.

So as we saw the online process, we can apply for an IPO as we did in SBI CARDS

So you can follow a similar process for the upcoming IPO's step by step.

2nd question which arises is, how can we increase the chances of allotment?

If you want to buy more than one lot, apply through multiple accounts.

If your wife or parents have an account, then apply through those accounts also

So that the chances increase because the allotment is done on the basis of PAN.

So if you're getting 1 quantity according to your PAN number,

then it cannot be more than that if shares are oversubscribed.

And many people apply through 2 different accounts through different brokers

Don't do this because your application can get rejected.

And 3rd thing to remember is the price at which we bid.

As I showed you in the demo, either you should select the cutoff price which will be decided finally

Or select the highest price. Like in our case it was Rs. 755.

Now since we're talking about SBI CARDS which is a very popular IPO but

It's not necessary that the pricing of all IPO's be correct.

So in that case, you should do your judgment on the price

Let's say you don't find the valuation correct on the higher side

In the case of SBI, it didn't gave scope for that.

There's no such scope in the range of 750-755.

But in some cases, there's a difference of even 10-15% between floor and cap prices.

The floor price is the lowest and Cap is the highest price.

So we should only think of entering at cutoff or cap price in case of any popular IPO.

Let's now come to our final step which is, which is my opinion about investing in an IPO.

I consider IPO's as a short term investment because first understand the psychology,

If you own a house, then do you want to sell it at a cheap price?

You only want its maximum price.

Similarly, the company also wants the maximum price of its shares.

This is what happens in an IPO.

Valuations are mostly on the higher side whenever any IPO is listed

But short-term investment is about a positive sentiment.

When sentiments are positive for a company, many people subscribe for its IPO's

And when the demand increases, the price also increases.

So, I personally see IPO's as a short term investment because

If I want to buy any stock for the long term,

So I can buy that anytime. Why would I only invest during IPO?

Generally, after listing of many IPO's,

you'll see that the issue prices of many companies decrease after 1-2 years.

That is also a very good opportunity to buy any share

if you think that this company have good fundamentals and can last long.

So if you by chance miss an IPO, it's not a thing to get disheartened.

I think that it is a short term game and if you get some immediate return then it's ok

And if you didn't get that, the stock is not going to go anywhere

So basically there were 2 purposes for making this video.

1. You can get to know that how to apply in IPO's and

2. We should understand that IPO is a short-term investment.

And it's not like if we didn't get returns in short term,

then we'll not get in the long term as well.

Opportunities are all the time and this is what the stock market is.

So that's it in this video.

If you liked this video then press the like button and share it.

Also, tell your friends and family members about IPO's that how can they apply.

And they will also get to know about its pros and cons through this video.

If you have any suggestions related to this video or channel or

If you want to suggest any topic

then tell us in the comment section

and if you haven't subscribed to this channel yet,

Then do subscribe to it and press the bell icon

So that you get the notification of the latest video.

So we'll meet in another informative video.

Till then keep learning, keep earning, and as always, stay happy.