Compositedge’s Online IPO facility:
Applying for IPO’s using the Unified Payment Interface (UPI), is a step towards digitizing the offline processes involved in applying for IPO’s through a very simple online process.
This requires an applicant to create a UPI ID and PIN using any of the UPI enabled mobile applications (Banks / Third Party Apps). The UPI ID can be used for blocking of funds and making payment in the IPO process.
UPI as a payment mechanism for IPOs is applicable to all IPOs for which the Red Herring Prospectus is filed after 01 January 2019.
Over time, the UPI ID could be made a mandatory payment mechanism for IPOs.
Process to Apply:
Go to the Compositedge homepage, click on IPO and select the IPO required from the list of open issues. You may also access the IPO page using the link:
Signup in a jiffy and login. You need not even be a client of Compositedge!
Enter “UPI ID”, enter “Market Lot”, select “Cut Off Price” or enter desired rate and click on “Submit”.
Please ensure the UPI ID used is mapped to your personal bank account. The IPO application is liable to get rejected if a non-mapped bank account is used.
Once you click submit, you’ll receive a mandate request on your UPI app. Accept the mandate and you’re done!
You may also watch the video to guide you through the process:
Points to note:
At the end of the day after submitting the IPO bid, an SMS would be sent to the applicant from the exchange confirming receipt of bid.
After applying for an IPO, funds required for the application would be blocked in the respective bank account until the date of allotment (2 days before the listing date).
If allotment is received, money is debited from the bank account and shares are credited to the demat account.
If allotment is not received or partly received, an instruction is sent to the bank to unblock the appropriate amount in the investor’s bank account, on the date of allotment.
Advantages / Value add:
An instant mandate creation ensures real time application submission.
Customers enjoy the instant fund transfer experience of the UPI while subscribing to an IPO.