Given Rs 5 lakh maximum UPI transaction limit, HNIs can now invest in IPOs using UPI with any broker. The process to make IPO application order is same for both retail investors and non-institutional investors.
- Log in to Zerodha account on Kite website or app.
- Go to IPO option under the bids tab.
- Click on Apply option of your choice of IPO, you want to bid for.
- Enter virtual UPI ID linked with your bank account.
- Enter the quantity or number of shares in multiples of IPO lots and price.
- Uncheck the cut-off price box because HNI or NII are not permitted to place an IPO bid at cut-off price.
- When you unselect the cut-off price, the bid price automatically displayed is the upper price of price band. You can opt to bid at any price between the IPO price band.
- Submit the IPO bid with Zerodha.
- You will receive a UPI mandate. Accept the payment to permit your bank to block/freeze your bank account for the IPO bidding amount.
- Upon allotment, funds will be either debited (if allotted) or unblocked (if no allotment).
The IPO application window for HNIs remains open until 4 PM on the issue closing date. Anyone who wants to invest between Rs 2 lakh – Rs 5 lakh in an IPO must submit an IPO bid before 4 PM on the final day of bidding.
