How to Apply for IPOs on Fyers: A Step-by-Step Guide

How to Apply for an IPO Through Fyers: A Complete Guide

Investing in Initial Public Offerings (IPOs) can be a great opportunity to get in early on promising companies. Fyers, a popular online brokerage platform in India, provides a user-friendly interface for applying to IPOs. This article will guide you through the entire process, from pre-applying for upcoming IPOs to understanding the nuances of SME IPOs, and also address modifications and cancellations. Learning how to navigate this process can significantly enhance your investment strategy. Let's delve into how you can apply for IPOs through Fyers.

Understanding IPOs and Their Types

Before diving into the application process, let's understand the basic types of IPOs you might encounter. IPOs are the first time a company offers its shares to the public. There are generally two types you will come across: general IPOs and SME IPOs.

General IPOs: For Large Corporations

General IPOs are typically issued by larger, well-established corporations that are listing their shares on the main stock exchanges like the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). These IPOs tend to be more widely publicized and are accessible to a broad range of investors. When you apply for a general IPO, you are investing in a company that has already built a significant presence and has a proven track record.

SME IPOs: For Small and Medium Enterprises

SME IPOs, on the other hand, are specifically designed for Small and Medium-sized Enterprises. These companies list their shares on a dedicated SME platform within the stock exchanges. SME IPOs enable smaller companies to raise capital for growth and expansion. They often have different regulatory requirements and may come with higher risks but also higher growth potential.

Understanding the difference between these two types of IPOs helps you make more informed investment decisions based on your risk appetite and investment goals. Fyers makes applying for both types equally simple.

Applying for an IPO on Fyers: A Step-by-Step Process

Fyers has streamlined the IPO application process into a simple three-step procedure. Whether you're applying for a general IPO or an SME IPO, the fundamental steps are the same. Here’s how you can apply for an IPO through Fyers:

1. Go to the Fyers IPO Portal: Begin by navigating to the Fyers IPO portal, which is accessible directly through the Fyers web platform if you are already logged in.
2. Select the IPO and Enter Details: Choose the IPO you wish to invest in from the list. Click on 'Apply' and fill in the necessary details, including the quantity of shares you want to apply for, or the number of lots you want to bid for, and your UPI ID.
3. Approve UPI Request: After submitting your application, you will receive a UPI mandate request on your UPI app. Confirm this request to authorize the payment, and your application will be successfully placed.

This straightforward method makes it easy for both novice and experienced investors to participate in IPOs with minimal hassle.

Pre-Applying for Upcoming IPOs: Get a Head Start

Fyers also offers the ability to pre-apply for upcoming IPOs, which is beneficial as it allows you to get your application in early. This can be done approximately 2 to 4 days before the official launch of the IPO bidding process. Here’s how you can pre-apply:

1. Access the IPO Portal: Log into the Fyers IPO portal using your FYERS credentials.
2. View IPO Details: Identify the IPO you are interested in and click on ‘View Details’ to gather comprehensive information about it.
3. Initiate Pre-Application: After reviewing the IPO details, click on the 'PreApply' option.
4. Provide Necessary Details: Fill in all the mandatory fields and then click 'Apply Now.'
5. Authorize Payment: Approve the UPI mandate received on your UPI app to finalize your pre-application.

Pre-applying can help you secure your spot in the IPO before the actual rush begins. It is a useful strategy, especially for highly anticipated IPOs where the demand is expected to be high.

Applying for an SME IPO Through Fyers

While the general steps for applying to any IPO are similar, SME IPOs have a few specific requirements and considerations. Here’s how you can apply for an SME IPO on Fyers:

1. Log into the Fyers IPO Portal: Access the Fyers IPO portal through the web if you are already logged in.
2. Identify the SME IPO: Find the desired SME IPO and click on ‘Apply now.’
3. Bid Entry: Enter your Bid Quantity, select the appropriate series, and provide your UPI ID.
4. UPI Payment Authorization: Accept the payment mandate received in your UPI application.
5. Order Tracking: Monitor your application status in the ‘View orders’ section.
6. Cancellation: You have the option to cancel your order while it’s still being processed.
7. Contract Note Receipt: After the allotment process is complete, a contract note will be sent to your registered email address confirming your investment.

Applying for an SME IPO requires careful attention to the bid quantity and other details, since these IPOs are often traded in lots rather than individual shares.

Modifying an SME IPO Application on Fyers

If you need to make changes to your SME IPO application, Fyers makes it easy. Here are the steps to modify an existing application:

1. Log into the Fyers IPO Portal: Access the portal with your Fyers credentials.
2. Navigate to Orders: Locate the 'Orders' section to view all your active IPO orders.
3. Select ‘Modify’: Click on the ‘Modify’ option next to the IPO application you wish to change.
4. Edit Application Details: Adjust the number of lots you are applying for. However, for applications valued above INR 2 lakhs, the lot size cannot be reduced. If you need to decrease the lot size beyond this point, you must cancel your existing order and create a new application.
5. Confirm Changes: After making the required adjustments, review and confirm your changes.

Modifying your application can help you adjust your investment based on new information or changes in your investment strategy.

Cancelling an SME IPO Application on Fyers

You can also cancel your application if you change your mind or decide not to proceed with the investment. Here’s how you can cancel an SME IPO application:

1. Log into the Fyers IPO Portal: Start by logging into your Fyers IPO Portal.
2. Proceed to Orders: Go to the 'Orders' section to see all your active IPO orders.
3. Choose to Cancel: Find the IPO application that you want to withdraw and select the 'Cancel' option next to it.
4. Confirm Cancellation: Finalize your decision to cancel the application.

Being able to cancel your application is a useful feature, giving you the flexibility to exit the IPO application if you change your investment plans before allotment.

Important Points to Remember

Here are some key things to remember when applying for an IPO on Fyers:

• Subscription Period: Once the subscription period for an IPO concludes, you cannot modify or cancel your application.
• Allotment Process: After the IPO closes, the allotment process begins. This is where shares are allocated to successful applicants based on the demand.
• Demat Account Credit: Shares of an SME IPO are typically credited to your Demat account within one week after allotment. The exact timing can vary slightly based on the specific IPO.
• Minimum and Maximum Amounts: For an SME IPO, the minimum investment is based on the company's price band and lot size, usually amounting to over ₹1 Lakh. The maximum investment is limited to ₹5 Lakh.
• Investment Categories:
  • Up to ₹2 Lakhs: Applications are classified under the Retail category.
  • From ₹2 Lakhs to ₹5 Lakhs: Applications fall into the Non-Institutional Bidders (NIB) category.
• Detailed Terms: Always review the detailed terms of each SME IPO in the prospectus and any specific information provided by Fyers during the application phase for complete clarity.

FAQs on Applying for IPOs Through Fyers

Here are some frequently asked questions about applying for IPOs on the Fyers platform:

Q: Can I pre-apply for upcoming IPOs on Fyers?

A: Yes, you can pre-apply for upcoming IPOs 2 to 4 days before the official launch of the IPO bidding process.

Q: How do I pre-apply for an IPO on Fyers?

A: Log in to the Fyers IPO portal, view IPO details, click on 'PreApply,' provide the necessary details, and approve the UPI payment request.

Q: How long does it take for shares to be credited to my Demat account after allotment of an SME IPO?

A: Generally, SME IPO shares are credited to your Demat account within one week of allotment, although this can vary slightly.

Q: What is an SME IPO?

A: An SME IPO is an avenue for Small and Medium-sized Enterprises to raise funds by offering shares to the public via a specialized SME platform on stock exchanges.

Q: How can I apply for an SME IPO on Fyers?

A: Log into the Fyers IPO portal, find the desired SME IPO, click 'Apply now,' input your bid quantity and UPI ID, authorize the UPI payment, and track your order in the 'View orders' section.

Q: What is the main difference between an SME IPO and a general IPO?

A: The main distinction lies in the scale of the enterprise and the listing platform. SME IPOs cater to smaller businesses listing on a dedicated SME exchange platform, while general IPOs are for larger corporations on the main exchanges.

Q: Can I modify my SME IPO application?

A: Yes, you can modify your SME IPO application by accessing the 'Orders' section in the IPO portal, selecting 'Modify,' and adjusting your bid details. Remember, reducing lot size beyond ₹2 lakh is not allowed, and a new application has to be placed in such cases.

Q: How can I cancel my SME IPO application?

A: Log into the Fyers IPO portal, go to 'Orders', and select the 'Cancel' option next to the IPO application you wish to withdraw.

Q: Can I modify or cancel my application after the subscription period has ended?

A: No, modifications or cancellations are not permitted once the IPO subscription period has concluded.

Q: What is the maximum and minimum amount I need to apply for an SME IPO?

A: The minimum investment usually amounts to over ₹1 Lakh, and the maximum investment is ₹5 Lakh.

Q: What is the difference between the retail category and the Non-Institutional Bidders (NIB) category for IPO applications? A: Applications up to ₹2 Lakhs fall under the retail category, while applications between ₹2 Lakhs and ₹5 Lakhs fall under the NIB category.

By reviewing these FAQs, you can resolve many questions and ensure a smooth application experience when investing in IPOs through Fyers.

Conclusion

Applying for an IPO through Fyers is a straightforward and efficient process. Whether you are interested in general IPOs or SME IPOs, Fyers provides all the necessary tools to help you make informed investment decisions. From pre-applying to modifying or canceling applications, understanding the steps and timelines is crucial. By following this detailed guide, you can enhance your investment opportunities and participate confidently in the IPO market.