A

PROJECT REPORT
ON
“A STUDY ON IPO BY ITS LISTING GAIN ”

SUBMITTED BY
CHINMAY RAHUL BADAVE
Roll No. 232229
Seat No. 2996

UNDER THE GUIDANCE OF

PROF. PAURNIMA SANADI

IN PARTIAL FULFILMENT OF
THE DEGREE OF

BACHELOR OF BUSINESS ADMINISTRATION

( BBA )

SUBMITTED
TO
SAVITRIBAI PHULE PUNE UNIVERSITY

THROUGH ,
SMT.KASHIBAI NAVALE COLLEGE OF COMMERCE
ERANDWANE , PUNE-411004
2023-2024
 SINHGAD TECHNICAL EDUCATION SOCIETY,S
SMT. KASHIBAI NAVALE COLLEGE OFCOMMERCE
( Affiliated to University of Pune and Recognized by Govt. of Maharashtra
) 19/15 Erandwane Smt. Khilare Marg. Off Karve Road , Pune -411004.

Date:-22/11/2023

CERTIFICATE

This is to certify that Mr. Chinmay Rahul Badave who is a Bonafide student
of Smt. Kashibai Navale College of Commerce , Erandwane , Pune has worked
on Project titled “ A Study on IPO By Its Listing Gain ” and has
Successfully completed the project work in partial fulfilment of award of
degree of Bachelor of Business Administration (BBA).

This report is the record of student’s own efforts under our supervision and
guidelines.

Prof. Paurnima Sanadi Prof. Paurnima Sanadi Dr. S. V. Deshpande

(Project Guide) (HOD BBA) (Principal)

EXTERNAL EXAMINER

Date:
22/11/2023
Place:PUNE
 DECLARATION

I hereby declare that this project work entitled “ A Study on IPO By Its Listing Gain” in
particular fulfillment of degree of Bachelor of Business Administration from Smt. Kashibai
Navale College of Commerce, Pune.

The work done by me is my own piece of work and authentic to best of my knowledge.

Date:22/11/2023
Place: Pune
 ACKNOWLEDGEMENT

I would like to express my special thanks of gratitude to my teacher “ Prof. Paurnima Sanadi ” for
their guidance and support in completing my project as well as head of thedepartment madam “ Prof.
Paurnima Sanadi ” for their constant motivation to work hard. Also I would like to extend my
gratitude to principal sir “ Dr. S.V.Deshpande ” providing me with al, facility that was required and
their constant encourage throughoutthe year.

CHINMAY RAHUL BADAVE

ROLL NO: 232229
SEAT NO. 2996
 INDEX

PAGE
SR NO. TITLE
NO.

1. OBJECTIVES OF STUDY 1

2. INTRODUCTION 2–9

3. BEST 10 IPOs OF INDIA 10 - 18

5. DATA ANALYSIS & 21 - 29

INTERPRETATION

6. CONCLUSION 30

7. REFERENCES 31

8. BIBLIOGRAPHY 32
 OBJECTIVES OF STUDY

A study on IPO in Organization has following objectives:

 How organization rise fund through IPO

 Study of IPO as Function of Stock Market
 facilitating future funds and raising opportunities
 Improving finances of organization through IPO
 To study /Bhim UPI & Broker App for launching IPO

1
 INTRODUCTION

An initial public offering (IPO) or stock launch is a public offering in which shares of a company are
sold to institutional investors.[1] and usually also to retail (individual) investors.[2] An IPO is typically
underwritten by one or more investment banks, who also arrange for the shares to be listed on one or
more stock exchanges. Through this process, colloquially known as floating, or going public, a
privately held company is transformed into a public company. Initial public offerings can be used to
raise new equity capital for companies, to monetize the investments of private shareholders such as
company founders or private equity investors, and to enable easy trading of existing holdings or future
capital raising by becoming publicly traded.

After the IPO, shares are traded freely in the open market at what is known as the free float. Stock
exchanges stipulate a minimum free float both in absolute terms (the total value as determined by the
share price multiplied by the number of shares sold to the public) and as a proportion of the total share
capital (i.e., the number of shares sold to the public divided by the total shares outstanding). Although
IPO offers many benefits, there are also significant costs involved, chiefly those associated with the
process such as banking and legal fees, and the ongoing requirement to disclose important and
sometimes sensitive information.

Details of the proposed offering are disclosed to potential purchasers in the form of a lengthy document
known as a prospectus. Most companies undertake an IPO with the assistance of an investment
banking firm acting in the capacity of an underwriter. Underwriters provide several services, including
help with correctly assessing the value of shares (share price) and establishing a public market for
shares (initial sale). Alternative methods such as the Dutch auction have also been explored and
applied for several IPOs.

2
ADVANTAGES OF IPO

Advantage #1: Get in on the action early

By investing in an IPO, you can enter the ‘ground floor’ of a company with a high growth potential.
An IPO may be your window to rapid profit in a short time period. It may also help grow your wealth
in the long run. Suppose, you invest in a young company that sells disruptive technology. If it manages
to sway the market and rake in profits, you would gain from its success too.

Advantage #2: Meet long-term goals

IPO investments are equity investments. So, they have the potential to bring in big returns in the long
term. The corpus earned can help you to fulfil long-term financial goals like retirement or buying a
house. Besides, the Indian IPO market is growing. In 2017, the Indian stock market generated almost
$11 billion through IPOs [1].

Advantage #3: More price transparency

The price per security issued is clearly mentioned in the IPO order document. So, you have access to
the same information as bigger investors. This would change in the post-IPO scenario. The share prices
after the IPO would depend on changing market rates and the best price that the stockbroker can offer.

Advantage #4: Buy cheap, earn big

The IPO price is often the cheapest price if you invest in a small company that has the potential to
grow big. That is because the company may offer a discounted rate. If you miss the IPO window,
investing in that promising company may be difficult because the stock price may skyrocket. You do
not believe it? Let us taken Amazon’s example. When Amazon.com Inc. floated an IPO in 1997, each
share was priced at $18. Had you invested $5,000 in Amazon’s IPO, your shares would have been
worth $2.5 million in April 2018[2]. These stories of riches do not end with Amazon. Let us look at
some of the jaw-dropping success stories, all thanks to the IPO.

3
DISADVANTAGES OF IPO

Disadvantage #1: Additional Regulatory Requirements and Disclosures

Unlike private companies, public companies are required to file their financial statements with the
Securities and Exchange Commission (SEC) every year. These financial statements must be prepared
in accordance with United States Generally Accepted Accounting Principles and audited by a certified
public accounting firm. These SEC regulations are both burdensome and costly. Reporting a
company’s financial position publicly requires that company to establish more stringent financial
controls, staff a financial reporting team and audit committee, implement quarterly and yearly financial
close processes, hire an audit firm, and complete hundreds of other tasks. These responsibilities cost
public companies millions of dollars every year and require thousands of labor hours. For more
information about public company audits see our article Audit prep for the Big Leagues.

Disadvantage #2: Market Pressures

Market pressures can be very difficult for company leadership who are used to doing what they feel is
best for the company. Founders tend to have a long-term view, with a vision of what their company
will look like years from the present and how it will impact the world. The stock market, on the other
hand, has a very short-term, profit-driven view. Once a company is public, its every move is
scrutinized by investors and analysts around the world, who are generally interested in one question:
“Will this company meet its quarterly earnings target?” If a company meets its target, its stock price
will normally increase; if not, its stock price will normally decrease. Even if leadership is doing what is
best for the company in the long-run, failing to meet the public’s short-term goals may cause the
company to lose value and the leadership might be replaced as a result. Founders who do not like the
idea of being constrained by short-term public goals should think carefully about going public.

Disadvantage #3: Potential Loss of Control

One major disadvantage of an IPO is founders may lose control of their company. While there are
ways to ensure founders retain most of the decision-making power in the company, once a company is
public, the leadership needs to keep the public happy, even if other shareholders do not have voting
power. Going public means receiving considerable amounts of money from public shareholders. Since
shareholders have given the company so much money, they expect the company to act in their best
4
interest, even if it means going in a direction the founder’s dislike. If shareholders feel the company is
not operating in a way that will help them make money, they will force the company, through
shareholder votes or public criticism, to appoint new leadership.

Disadvantage #4: Transaction Costs

Initial public offerings are expensive. Beyond the recurring expenses of public company regulatory
compliance, the IPO transaction process comes at a hefty cost. The largest cost of a public offering is
underwriter5 fees. Underwriters will typically charge between 5% and 7% of the gross proceeds, which
means the underwriter’s discount can cost up to $7 million on an average IPO. On top of underwriter
fees, companies who raise an average amount of proceeds (approx. $100 million) should expect to
spend about $1.5 – 2 million in legal fees, $1 million on auditor fees, and $500,000 on registration and
printing fees. The transaction costs will be even higher if a company chooses to hire a financial
reporting advisor6, or other specialty groups. See our article on the costs of going public for more
information.

5
RECENT TRENDS AND GROWING IMPORTANCE OF THE INDIAN STOCK
MARKET

In 2020-21, India witnessed a significant rise in start-ups and established private companies joining the
IPO league. The recent Global IPO trends by EY reveals that IPO volumes increased 163% in H1
2021, while its proceeds grew 245% YoY. The new wave of pandemic in India has slowed down the
IPO activity in Q2 2021 over Q1 2021. In June 2021, there were four large, completed IPOs and more
large IPOs are expected in Q3 2021. The report also highlights various factors that spark investor
interest in Indian IPOs such as huge dry powder investments, strong performance by Indian corporates,
evolving regulatory reforms, attractive business models, effective corporate governance, strong
management teams and fair valuations.

Another report by EY provides insights on the Indian IPO momentum. It highlights that Indian stock
exchanges ranked 12th in the world in terms of the number of IPOs in YTD 2021, with 22 IPOs in Q1
2021 versus 1 IPO in Q1 2020 and 10 IPOs in Q4 2020. In 2021, major IPOs in India are those into
consumer products and retail, diversified industrial products and automotive and transportation. About
12 firms have raised a whopping Rs. 27,000 crore (US$ 3.64 billion) through the IPO route in the first
four months of 2021.

The following is the list of Indian IPO performance tracker for Q2 2021.

The recent blockbuster IPO for Zomato created frenzy in the Indian market, with the company
exceeding anticipated applications—Zomato wanted to raise about Rs. 9,400 crore (US$ 1.27 billion),
but ended up bucketing close to Rs. 3.5 lakh crore (US$ 47.13 billion) applications. A similar response
was also received by Clean Science and Technology. The overwhelming response received by the
recent IPOs reflect the change in investment patterns of retail investors—from bank and government
FDs and real estate to the stock market and IPOs. This change is mostly driven by higher profit
potential. For instance, over the last year (July 2020-July 2021), the Bombay Stock Exchange (BSE)
market index increased by 13.58% and Nifty 200 grew by 18.50% YTD. Companies with strong
fundamentals have also garnered significant interest in the IPO market. For instance, Tata Chintan
Pharma, the latest listing, doubled investor money in less than two weeks and Zomato achieved this in
less than 10 days.

Several other factors such as increase in household disposable income and ease of opening Demit
6
accounts have also pushed retail investors towards increased participation in the IPO and stock market.

7
A Fitch report estimates that India's consumer spending will grow at 9.1% in H2 2021, after
contracting by 9.3% in the previous year, surpassing the pre-COVID-19 levels. The number of investor
accounts with the Central Depository Services Limited (CDSL) stood at 2.01 crore in January 2020,
and this has doubled over the last 17 months to 3.96 crore accounts as of June 2021. The Securities and
Exchange Board of India (SEBI) has also eased listing norms for start-ups, enabled minimum public
offerings, thus easing the IPO mechanism.

In the first seven months of 2021, 28 companies launched their IPOs—raising over Rs. 42,000 crore
(US$ 5.66 billion)—and 50 more companies are in the pipeline. Some of these are big names such as
PhonePe, MobiKwik, Grofers, PolicyBazaar, Flipkart Internet and Delhivery. PayTM is expected to
join the IPO league by October 2021, with its Rs. 16,600 crore (US$ 2.24 billion) listing, which is
likely to be the biggest listing ever.

While the IPO wave continues in India, experts have advised investors to nurture a diversified portfolio
and evaluate companies before investing. The risk appetite level varies by investors and they need to
consider factors such as business growth, profitability, market share, business model viability and entry
barriers before making an investment decision.

Mr. Mrinal Singh, CEO and CIO of InCred Asset Management, stated, “IPOs are money-raising tools
and companies line up with their public issue when liquidity in the market is high. Bunching up IPOs
when the liquidity is high leads to elevated price discovery, and historical trend shows that only 50%
companies can deliver expectations that get built up from them. So, I would say that retail investors
should be very cautious while investing in IPOs and valuation sanity is key.”

8
Digital payment in India have witnessed a steep growth curve in the past few years. 48 billion digital
transactions were recorded in calendar year (CY) 2020 despite the COVID-19 pandemic and its effect
on the economy. This growth has been fueled by new players entering the payments ecosystem,
innovations in technology, initiatives taken to address customer convenience and forward-looking
regulatory changes.

KEY CHALLENGES

The short-term strategy of flipping (the next chapter explains this concept) your shares is com-mono
place in the trading world. Most people expect to make considerable gains on the listing day. The fact
that companies like Salasar Techno and Avenue Supermarkets made blockbuster market debut with
152% and 114% gains fuels traders’ hopes of such a thing happening all the time.

9
However, retail investors should not get lured by the riche’s tales only. They need to read the warning
signs as well. So, let us look at some of the challenges retail investors face while bid-ding for an IPO.

A. LACK OF ENOUGH INFORMATION

Retail investors may not have access to adequate information to make a well-informed choice of
investing in an IPO. That is because independent research and management evaluation be-come
difficult in this case. The company’s prospectus is put up on SEBI’s website but retail investors may
find the text difficult to understand. One would have to be a financial expert to understand the nitty-
gritty of a company.

B. FRAGMENTED BROKER LANDSCAPE

Even the largest of brokers may not have enough links with all the underwriters in the market. This is a
disadvantage because the best way to buy shares in an IPO is through the underwriter’s retail broker
network. Underwriters usually give these brokers a higher number of shares.

C. NO GUARANTEE OF LISTING GAINS

History has shown that the biggest companies have floundered in an IPO. For instance, L&T In-fotech
IPO had a lukewarm response from the market in 2016. ICICI Lombard is another exam-ple. Although
Lombard received a good response during the IPO — it was oversubscribed by three times — it listed
2% lower than the issue price of Rs 661.

D. ACTUAL GAIN MAY BE LOW

Let us take the example of Salasar Techno. That IPO was oversubscribed 60 times in the retail quota. If
the company decided to allot shares to all retail investors, one would get shares worth not more than Rs
3,300 even after applying for the full Rs 2 lakh. The Rs 2 lakh amount is blocked up to eight to 10
days.

10
 Best 10 IPOs of India (By Listing Gains)

Offer Listing Day Listing Issue Total

Listing
# Issuer Name Price - Close Day Gain / Size (Rs Subscription (Rs
Date
(Rs) Price (Rs) Loss (%) Cr) in Crores)
Sigachi Industries Nov 15,
1 163 603.75 270.40 125.43 12782.63
Limited 2021
Paras Defence and
Oct 01,
2 Space Technologies 175 498.75 185.00 170.78 51960.47
2021
Limited
Religare Enterprises Nov 21,
3 185 521.70 182.00 140.16 22503.75
Limited 2007
Jul 04,
4 Vishal Retail Ltd 270 752.20 178.59 110.00 7598.80
2007
Aishwarya Telecom May 07,
5 35 90.85 159.57 14.00 280.00
Limited 2008
Nitin Fire
Jun 05,
6 Protection 190 484.10 154.79 64.41 3122.60
2007
Industries Ltd
Latent View Nov 23,
7 197 488.60 148.02 600.00 195891.24
Analytics Limited 2021
Apr 13,
8 ICRA Limited 330 797.60 141.70 85.18 6391.63
2007
Salasar Techno Jul 25,
9 108 259.15 139.95 35.87 9794.30
Engineering Ltd 2017
Astron Paper & Dec 29,
10 50 119.70 139.40 70.00 16922.77
Board Mill Ltd 2017

11
1. Sigachi Industries Limited IPO (Sigachi Industries IPO) Detail

Incorporated in 1989, Sigachi Industries is engaged in manufacturing of Microcrystalline Cellulose

(MCC) which is widely used as an excipient for finished dosages in the pharmaceutical industry. MCC
has varied applications in the pharmaceutical, food, nutraceuticals, and cosmetic industries. The
company manufactures MCC of various grades ranging from 15 microns to 250 microns and the major
grades of MCC manufactured and marketed by the company are branded as HiCel and AceCel.
Presently, the company manufactures 59 different grades of MCC at the manufacturing units, situated
in Hyderabad and Gujarat. The company has an in-house R&D division equipped with the necessary
facilities to carry out all necessary trials to develop new molecules from concept to commissioning.

The company has received various quality certifications and operates 3 manufacturing units namely,
Unit I situated at Hyderabad, and two manufacturing units, Unit II and Unit III situated at Jhagadia and
Dahej, in Gujarat. As of March 31, 2021, company's total MCC manufacturing capacity is 13,128
MTPA from three locations.

 Sigachi Industries Limited Stock Quote & Charts

₹244.60
1.05 (0.43%)

 Open: ₹244.70
 High - Low: ₹246.10 - ₹242.15
 Previous Close: ₹243.55
 Total Traded Value: 36,130
 52 Weeks High: ₹359.50 (Jan 09, 2023)
 52 Weeks Low: ₹219.80 (Mar 29, 2023)

12
 

 Sigachi Industries IPO Details

IPO Date Nov 1, 2021 to Nov 3, 2021

Listing Date Nov 15, 2021
Face Value ₹10 per share
Price ₹161 to ₹163 per share
Lot Size 90 Shares
7,695,000 shares
Total Issue Size
(aggregating up to ₹125.43
Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE

 Sigachi Industries IPO Tentative Timetable

Sigachi Industries IPO opens on Nov 1, 2021, and closes on Nov 3, 2021.

Event Tentative Date

Opening Date Nov 1, 2021
Closing Date Nov 3, 2021
Basis of Allotment Nov 10, 2021
Initiation of Refunds Nov 11, 2021
Credit of Shares to Demat Nov 12, 2021
Listing Date Nov 15, 2021
UPI Mandate Confirmation Cut-Off Time 5.00 PM on the issue closing day

13
 Sigachi Industries IPO Reservation

QIB Shares Offered 1,539,000 (28.57%)

NII (HNI) Shares Offered 1,154,250 (21.43%)
Retail Shares Offered 2,693,250 (50.00%)
Total Shares Offered 5,386,500

 Sigachi Industries IPO Lot Size

The Sigachi Industries IPO lot size is 90 shares.

Application Lots Shares Amount

Retail (Min) 1 90 ₹14,670
Retail (Max) 13 1170 ₹190,71
0
Lot Size Calculator

 Sigachi Industries IPO Analysis

Sigachi Industries IPO Recommendation Summary

Review By Subscribe Neutral Avoid

Brokers 3 1 0
Members 0 0 0

14
2. Paras Defence And Space Technologies Limited IPO (Paras Defence and Space
Technologies IPO) Detail

Paras Defence and Space Technologies are primarily engaged in the designing, developing,
manufacturing, and testing of a variety of defence and space engineering products and
solutions. The company has five major product category offerings - Defence & Space Optics,
Defence Electronics, Heavy Engineering, Electromagnetic Pulse Protection Solutions, and
Niche Technologies. Paras Defence and Space Technologies is the only Indian company with
the design capability for space-optics and opto-mechanical assemblies and is one of the
leading providers of optics for various Indian defence and space programs. The company also
delivers customized turnkey projects in the defence segment. The company has partnered
with some of the leading technology companies around the world to indigenize advanced
technologies in the defence and space sectors for the Indian market.
The company has 2 manufacturing plants in Maharashtra and is in the process of expanding
its current manufacturing facility at Nerul in Navi Mumbai.

 Paras Defence And Space Technologies Limited Stock Quote & Charts

₹533.85
7.05 (1.34%)

 Open: ₹531.60
 High - Low: ₹537.15 - ₹527.80
 Previous Close: ₹526.80
 Total Traded Value: 93,684
 52 Weeks High: ₹811.00 (Sep 19, 2022)
 52 Weeks Low: ₹445.55 (Mar 28, 2023)

15
 Paras Defence and Space Technologies IPO Details

IPO Date Sep 21, 2021 to Sep 23, 2021

Listing Date Oct 1, 2021
Face Value ₹10 per share
Price ₹165 to ₹175 per share
Lot Size 85 Shares
[.] shares
Total Issue Size
(aggregating up to ₹170.78
Cr)
[.] shares
Fresh Issue
(aggregating up to ₹140.60
Cr)
1,724,490 shares of ₹10
Offer for Sale
(aggregating up to ₹30.18 Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE

 Paras Defence and Space Technologies IPO Tentative Timetable

Paras Defence and Space Technologies IPO opens on Sep 21, 2021, and closes on Sep 23, 2021.

16
 Event Tentative Date
Opening Date Sep 21, 2021
Closing Date Sep 23, 2021
Basis of Allotment Sep 28, 2021
Initiation of Refunds Sep 29, 2021
Credit of Shares to Demat Sep 30, 2021
Listing Date Oct 1, 2021
UPI Mandate Confirmation Cut-Off Time 5.00 PM on the issue closing day

 Paras Defence and Space Technologies IPO Reservation

QIB Shares Offered 2,017,941 (28.26%)

NII (HNI) Shares Offered 1,536,856 (21.52%)
Retail Shares Offered 3,585,996 (50.22%)
Total Shares Offered 7,140,793

 Paras Defence and Space Technologies IPO Lot Size

The Paras Defence and Space Technologies IPO lot size is 85 shares.

Application Lots Shares Amount

Retail (Min) 1 85 ₹14,875
Retail (Max) 13 1105 ₹193,37
5
Lot Size Calculator

 Paras Defence and Space Technologies IPO Analysis

Paras Defence and Space Technologies IPO Recommendation Summary

Review By Subscribe Neutral Avoid

Brokers 11 8 0
Members 0 0 0
17
3. Religare Enterprises Limited IPO (Religare IPO) Detail

Religare Enterprises Limited is Ranbaxy Laboratories Limited promoted financial product and service
provider company.

Religare provide its service in three different segments including Retail, Wealth management and the
Institutional spectrum. It offers wide range of services including equities, commodities, insurance
broking, wealth advisory, portfolio management services, personal finance services, Investment
banking and institutional broking services. Religares retail network spreads across more than 900
locations across more than 300 cities and towns in India.

 Religare Enterprises Ltd. Stock Quote & Charts

₹168.60
4.10 (2.49%)

 Open: ₹165.80
 High - Low: ₹173.75 - ₹165.60
 Previous Close: ₹164.50
 Total Traded Value: 15,99,130
 52 Weeks High: ₹192.45 (Nov 28, 2022)
 52 Weeks Low: ₹97.65 (May 12, 2022)

18
 Religare IPO Details

IPO Date Oct 29, 2007 to Nov 1, 2007

Listing Date Nov 21, 2007
Face Value ₹10 per share
Price ₹160 to ₹185 per share
Lot Size 35 Shares
7,576,102 shares
Total Issue Size
(aggregating up to ₹140.16
Cr)
Issue Type Book Built Issue IPO
Listing At BSE, NSE

 Religare IPO Lot Size

The Religare IPO lot size is 35 shares.

 Religare IPO Analysis

19
Application Lots Shares Amount
Retail (Min) 1 35 ₹6,475
Retail (Max) 30 1050 ₹194,25
0
Lot Size Calculator

Religare IPO Recommendation Summary

Review By Subscribe Neutral Avoid

Brokers 3 0 0
Members 0 0 0

20
 DATA ANALYSIS

 What is UPI?

Unified Payments Interface (UPI) is an instant payment system developed by the National Payments
Corporation of India (NPCI), an RBI regulated entity. UPI is built over the IMPS (Immediate Payment
Service) infrastructure and allows you to instantly transfer money between any two parties' bank
accounts.

 What is a UPI ID?

UPI ID (also called Virtual Payment Address or VPA) is a unique ID for using UPI. The UPI Id can be
created by registering with one of the UPI enabled mobile applications (App) using your bank account
details.

 Can I use my existing UPI ID for applying in public issues?

The existing UPI ID can be used, provided that:

 The bank account associated with the UPI ID is held with a bank whose name is appearing
in the ‘List of SCSBs eligible to act as an Issuer Bank’
 You are using a mobile application and a UPI handle that supports use of UPI for public
issues. A list of such applications and handles is appearing in the ‘List of SCSBs eligible to
act as an Issuer Bank’ available on website of SEBI
 The total length of the UPI ID does not exceed 45 characters (e.g. the UPI ID - XYZ@UPI
is 7 characters).

 How “UPI as a payment option” can be used in the public issue process”?

UPI as part of bidding

 Investor will fill in the bid details in the application form as per the existing process along
with his UPI ID.
 As per the existing process, investor may submit the application with any of the
intermediary (Syndicate Member / Registered Stock Brokers / Registrar and Transfer
Agents / Depository Participants), who, on receipt of application will upload the bid details
along with UPI id in the stock exchange bidding platform.
 The stock exchange will electronically share the bid details, along with investors UPI id,
with the Escrow/Sponsor Bank appointed by the issuer company.
21
UPI as part of blocking

 The Escrow / Sponsor Bank will initiate a mandate request on the investor i.e., request the
investor to authorize blocking of funds equivalent to applicant amount and subsequent debit of
funds in case of allotment.
 The request raised by the Escrow/Sponsor Bank, would be electronically received by the
investor as SMS/intimation on his / her bank provided mobile no. linked to UPI ID.
 Upon validation of block request by the investor, the said information would be electronically
received by the investors’ bank, where the funds, equivalent to application amount, would get
blocked in investors account. Intimation regarding confirmation of such block of funds in
investors account would also be received by the investor.

UPI as part of payment for shares post allocation process

 The registrar to the issue, based on information of bidding and blocking received from stock
exchange, would undertake reconciliation and prepare the basis of allotment.
 Upon approval of such basis the instructions would be sent to sponsor bank to initiate process
for credit of funds in the public issue escrow account and unblocking excess money.
 Based on authorization given by investor using UPI PIN at the time of blocking, the funds,
equivalent to the allotment, would be debited from investors account and remaining funds, if
any, would be unblocked.

22
•
•

23
 1. Investor UPI application screen 2.Sample of IPO details in attachment

•
•

This attachment will contain IPO application details submitted by investor

3.Post verification of details above 4.Pre-confirmatio page

24
5. Entering of UPI PIN 6. Confirmation page

25
 ANGEL ONE

Angel One is among the top 10 stock brokers in India offering retail broking, investment, and advisory
services to stock market investors. Angel started broking operations in 1987. As of July 2021, Angel
has a presence in over 900 cities through around 18500 offices.

Angel One has the largest distribution network of stock broking and investment services in India.

Angel offers Equity, Commodity and Currency Trading services. Angel also offers services like IPO,
Mutual Funds and Demat Account.

While most of the Angel customers are offline customers trading through branch offices or by calling,
Angel One also offers sophisticated and advance online trading platform for tech savvy customers.

Angel One also provides research, stock recommendations and in-depth analysis companies going
public through IPO.

Online IPO is one of the most popular offerings of Angel One. Online IPO provides customer the
facility to conveniently apply for the IPO shares without any paper work. Integrated with over 20
banks, the online IPO offers ability to apply, modify and cancel IPO anytime when the IPO shares
available for bidding.

How to apply IPO in Angel One?

Angel One offers online IPO application services. Angel One customers can apply in IPOs in two
ways; using UPI-based Angel One IPO application and by using ASBA based net-banking service of
the bank. Note: A UPI ID is required if you are planning to apply in IPO using UPI as a payment
gateway. You can create the UPI ID from the net-banking mobile app of your bank or using the BHIM
app for free.

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Steps for Angel One IPO Application (UPI Based)

4. Log in to Angel One apps (mobile, web or desktop).

5. Click on 'More' on the top menu.
6. Click on 'IPO' from the dropdown.
7. Select the IPO and click the 'Apply' button.
8. Enter UPI ID, investor type, order quantity and price.
9. Choose the Cutoff-price checkbox if applying in the retail category.
10. Click 'Apply' to place the IPO order
11. A UPI mandate is sent to your UPI App in 2 hours.
12. Accept the UPI mandate in your UPI App (net-banking or BHIM)
13. Check the status of your IPO app in Angel One IPO App.
14. You can also apply for an IPO using the online IPO facility offered by your bank using net
banking. This facility is offered by all major banks including ICICI, HDFC, SBI, Kotak, Bank of
Baroda etc.

Steps to apply in IPO using ASBA Net Banking

1. Log in to the website/mobile app of your bank.

2. Go to the IPO section.
3. Choose an IPO from the list and apply.
4. Enter your Angel One demat account number or any other demat account where you want the
IPO shares to be credited
5. Choose Investor Type, enter order quantity and price
6. Choose the Cutoff-price checkbox if you're applying in the retail category
7. Review and confirm the IPO order

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 BHIM UPI

Steps to apply in IPO using BHIM UPI

1. Create a UPI ID using the net banking app or BHIM app on your phone.
2. Visit the IPO website or Mobile App offered by your broker.
3. Select the IPO and click the Apply button.
4. Fill the form and submit the UPI ID as a payment option.
5. The broker sends the IPO application to the exchange.
6. You will receive a block mandate request on your UPI App (Net-banking or BHIM). This may take
up to 24 hrs.
7. Login to net-banking or BHIM and approve the mandate request.
8. The funds get blocked in your bank account.
9. Exchange sends application data to the registrar after the issue closes.
10. Registrar allocates the shares.
11. Funds are withdrawn or unblocked from the bank account.
12. Registrar transfers the shares to your demat account.

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 CONCLUSION

BHIM UPI & brokers are most important for IPO launch.
The complexity of the IPO process can easily lead to a variety of pitfalls. Although the room for error
may feel overwhelming, executives can greatly improve their company’s chance for a successful IPO
by simply being aware of the common pitfalls mentioned in this article. As executives recognize
potential pitfalls during the IPO process, they will be better equipped to anticipate and avoid many of
the serious mistakes that can delay or even prevent their company from going public. IPO are very
risky for investment

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 REFERENCES

www.google.com

www.wikipedia.com

www.angelone.com

www.zerodha.com

www.bhimupi.com

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