{"id":371017,"date":"2023-11-23T14:10:00","date_gmt":"2023-11-23T08:40:00","guid":{"rendered":"https:\/\/zerodha.com\/z-connect\/?p=371017"},"modified":"2024-02-20T14:55:34","modified_gmt":"2024-02-20T09:25:34","slug":"it-takes-9-entities-to-process-an-ipo-application","status":"publish","type":"post","link":"https:\/\/zerodha.com\/z-connect\/varsity\/it-takes-9-entities-to-process-an-ipo-application","title":{"rendered":"It takes 9 entities to process an IPO application!"},"content":{"rendered":"

There are\u00a09 entities<\/strong>\u00a0involved in the IPO process \u2013 apart from the investor & the issuing company.<\/p>\n

You first submit your IPO application to your Stockbroker, who sends it to the Stock Exchanges [NSE & BSE]. The Stock Exchange validates your PAN & demat account details with the Depositories [NSDL & CDSL]. The application is then sent to the issuing company\u2019s bank, i.e. the Sponsor Bank.<\/p>\n

At this stage, the UPI leg of the transaction starts. The Sponsor Bank triggers a UPI mandate request that reaches your UPI app through NPCI\u2019s switch. Once you enter your PIN, your bank blocks the subscription amount in your bank account.<\/p>\n

The registrar of the company considers the blocked amount to perform allotment of shares in the IPO. Once the IPO closes, the funds are collected by the Sponsor Bank and given to the issuing company.<\/p>\n

All of this activity & other compliance actions get tracked and acted upon by the Merchant Banker to the IPO. Here is what the IPO application flow looks like \u2013<\/p>\n

\"\"<\/a><\/p>\n

P.S. I have assumed you are using UPI to apply. However, the flow is similar even in the case of ASBA applications.<\/p>\n

This guest post is by Mohit Mehra.\u00a0<\/em>Mohit splits his time between Zerodha & Rainmatter, sharing his experiences on this\u00a0blog<\/a>.<\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

There are\u00a09 entities\u00a0involved in the IPO process \u2013 apart from the investor & the issuing company.<\/p>\n","protected":false},"author":242539,"featured_media":371803,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[477],"tags":[546],"class_list":["post-371017","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-varsity","tag-equity-investing"],"yoast_head":"\nIt takes 9 entities to process an IPO application! – Z-Connect by Zerodha<\/title>\n<meta name=\"description\" content=\"There are\u00a09 entities\u00a0involved in the IPO process \u2013 apart from the investor & the issuing company.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/zerodha.com\/z-connect\/varsity\/it-takes-9-entities-to-process-an-ipo-application\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"It takes 9 entities to process an IPO application!\" \/>\n<meta property=\"og:description\" content=\"There are\u00a09 entities\u00a0involved in the IPO process \u2013 apart from the investor & the issuing company.\" \/>\n<meta property=\"og:url\" content=\"https:\/\/zerodha.com\/z-connect\/varsity\/it-takes-9-entities-to-process-an-ipo-application\" \/>\n<meta property=\"og:site_name\" content=\"Z-Connect by Zerodha\" \/>\n<meta property=\"article:publisher\" content=\"https:\/\/www.facebook.com\/zerodha.social\" \/>\n<meta property=\"article:published_time\" content=\"2023-11-23T08:40:00+00:00\" \/>\n<meta property=\"article:modified_time\" content=\"2024-02-20T09:25:34+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/zerodha.com\/z-connect\/wp-content\/uploads\/2023\/11\/hfg-20.png\" \/>\n\t<meta property=\"og:image:width\" content=\"700\" \/>\n\t<meta property=\"og:image:height\" content=\"400\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/png\" \/>\n<meta name=\"author\" content=\"Guest Author\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:creator\" content=\"@zerodhaonline\" \/>\n<meta name=\"twitter:site\" content=\"@zerodhaonline\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Guest Author\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"2 minutes\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/zerodha.com\/z-connect\/varsity\/it-takes-9-entities-to-process-an-ipo-application\",\"url\":\"https:\/\/zerodha.com\/z-connect\/varsity\/it-takes-9-entities-to-process-an-ipo-application\",\"name\":\"It takes 9 entities to process an IPO application! 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