How to Buy IPO Online in India

An investor’s introduction to the world of stock market is quite simple - all you have to do is open a demat account and trading account. However, from there, the investor can go in any direction as the opportunities presented by the stock market are endless. One such opportunity that various investors in the market are interested in is IPOs.

What is an IPO?

An initial public offering IPO refers to ‘going public’ for a company. It is a process by which a private company raises capital by selling its shares to the general public. For the company itself, an IPO is an opportunity to become better regulated and more transparent. Moreover, it also helps the company expand and grow faster. The process of IPOs involves the company selecting an underwriter and selecting the stock exchanges on which the shares of the company can be distributed publicly.

Why Should You Invest in IPOs?

An investor should invest in IPOs for the following reasons:

  • By making the right IPO investment at an early stage, you get an early chance to own stakes in a promising company that might reap high dividends for years to come.
  • IPO investments are a good option for investors looking for long-term investments in the market.
  • IPOs are also a more transparent form of investment since their price per security has to be explicitly stated for all public investors.

Before Investing

There are certain factors that you should consider before you start investing in IPO:

  • First, determine your essential investment criteria which include your investment capital, risk appetite and long-term financial goals.
  • Exercise caution before making your selection of IPO listings which includes conducting a thorough round of research about the company’s fundamentals, valuation and historical performance
  • Leverage all sources of information available about the IPO listing, such as the details in their released prospectus, company’s plans of action, expansion ideas, forays into other sectors and other important details about their long-term goals.

How Do You Invest in IPO Shares?

To invest in IPO shares, you must first open a Demat account as well as a trading account. Only Demat accounts are typically required to purchase shares in an IPO. However, if you wish to sell those IPO shares to a secondary market in the future, you will need to both open a Demat account and a trading account.


An IPO or an Initial Public Offering is lucrative investment opportunity for a variety of investors. However, like all investments, any potential IPOs should first be researched and thoroughly vetted by the investor. You too can start investing in the various IPOs available on the stock market by opening a demat account and trading account with IIFL.