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How To Buy IPO On Zerodha

There are several IPOs coming to the market this week. If you are an old or new trader then this is the most exciting season of the year for you. However, we are aware of the problem of navigating through the internet to choose the perfect site to begin trading smoothly. Zerodha is one such website that will help you to make the trading process easier. If you want to learn about how to buy IPO on Zerodha then you have to the right place. Therefore, let’s dive into the details of the company.

About Zerodha 

How To Buy IPO On Zerodha

Zerodha is the leading trading platform in India. It provides financial services and other services like trading, retail, brokerage and cryptocurrencies, bonds , mutual funds and the likes. The company was founded in 2010. It was founded by brothers Nithin and Nikhil Kamath. In 2016, Nikhil Kamath, the CEO of the company was awarded the “Top 10 Businessman to watch out for” by the Economic Times. In the same year it won the Bootstrap Champ Award. In 2018, it won the notable NSE retail broker of the year award.

Along with, the company won the Startup of the Year in 2020.  The company was started with the goal to make the job for traders easier in terms of their cost, technology and support system as well. It was the first discount broking  model in our country. The headquarters are located in Bangalore. In 2020, the company was valued at $1bn . It has a trusted users of 5 million and has gained the title of the largest stockbroker in our country in terms of the clients, volume of trade and acquiring new customers. The other reasons are the reliable and easily accessible online platform, the trading tools are quite efficient and updated. The brokers and traders find it safe and secure. It contributes about 15% of the daily volumes of stocks. The trading and investment options are available in Stocks , IPOS , Mutual funds, Commodity derivatives, Currency derivatives, Bonds and Govt securities, Futures and options. It has an efficient, modern and technically improved app system that allows the users to navigate easily through the trading purpose and other services required.

The company is also engaged in running an online educational platform to serve as a learning medium and engage online investors and traders. The company has an individual financial institution- Rainmatter that has invested in several startups and provided financial services to others as well. Mainly it targets the technology-based and innovative companies. Some of the reputed ones include Smallcase and ERPNext. In addition, it also operates True Beacon which serves the purpose of investment funding.

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How To Buy IPO On Zerodha

It provides the delivery equity trade at no charges which are listed on the official website of BSE and NSE.  However, the intraday trade services and Futures, Options are provided at a fee of Rs. 20 which extends to all its services including commodities and currencies. The Mutual Fund investment that is direct is absolutely free or at a zero-cost charge. Therefore, 60 to 90 percent of your money is saved in comparison to the other trading platforms.  Also, it doesn’t have any commission and other charges. All in all, the platform is suitable for all kinds of traders- new, old, active, and passive.

It can be considered safe for your investment for several reasons. The company is registered at zero debt making it safe and reliable for the traders. In terms of their exchange, it has not registered any customer complaint. The securities of the customers are not kept together in a pooled account. Therefore, it saves the risks of cyber frauds and thefts. You can feel completely at ease with your investment. The company has not engaged in proprietary trading and it doesn’t offer margin funding as well.

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For opening an online account in Zerodha, you will  be charged a fee of Rs. 200. In case of opening an offline account, you will be charged an amount of Rs. 400. Further, if you want to open it in a Demat account then you will be charged with a fee of Rs.300. The AMC on a trading account comes at a zero-cost charge.

However, the site does charge some extra small fees. This includes STT, GST, SEBI charges and Stamp Duty. STT is known as Securities Transaction Tax which is charged on the Futures and Options, delivery trade and intra trade services. The GST is charged at a rate of 18% on the brokerage and it also includes the transaction costs. The SEBI charges amount to Rs 10 per crore and the Stamp Duty charge amounts to 0.015% on the Equity delivery and 0.03% on the Equity intraday tra

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How To Buy IPO On Zerodha

The process of applying for IPO on Zerodha is quite simple and easy to understand. We have listed it for you.

  1. Install the UPI app which is convenient for your use. Once, it is installed, you have to register your account. Make sure you download the latest version. In addition, if you already are a user then we recommend you to update the app.
  2. You have to login into the Console menu and select  IPO under the Portfolio menu. Further, you have to check the IPO that you are really interested for among the range of options. The issue , closing date, allotment size, minimum quantity, and issue price all will be available in this window.
  3. Next, you have to link your bank account through the UPI ID. If you have doubts in this step then worry not. The app would not be able to access the details of your bank account. Alternately, if it is registered under a bogus account then it automatically gets rejected.
  4. In the next step, you have to click on the type of investor that you are. Once, you are done with this then you can choose the Cut-off price that you want to apply for. However, if you want to apply under a different price then you can choose the Price field.
  5. After thoroughly going through the above steps, you can click on the Checkbox. This is to confirm that you have read all the documents and prospectus which are applicable as per provisions under the SEBI rules and regulations of 2009.

These are the steps that you have to follow to successfully buy IPO in Zerodha. We recommend you to check the details and risks of the IPO before jumping into investment.  To stay updated about the details of How To Buy an IPO On Zerodha, you can daily visit our website.

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