ProStocks has a slightly different method to apply for IPO (Initial Public Offering). They have a separate and a dedicated subdomain website dedicated solely for IPO application. This post is a walk through on IPO application procedure for ProStocks clients.
A Dedicated Subdomain To Apply For IPO
You would not be able to apply for IPO from ProStocks trading site https://star.prostocks.com/ or their main site https://www.prostocks.com/. ProStocks has a dedicated sub domain to apply for IPO http://ipo.prostocks.com/.
Logging Into ProStocks IPO Site
The login credentials to ProStocks IPO site are not the same as your trading login. ProStocks customers have to login using their PAN (Permanent Account Number) as login ID and ProStocks registered email ID as password.
How To Buy IPO In ProStocks
Once you login you would be able to see list of all open IPOs by following: Order Book >> Current Issues (from left side menu bar). By default you would be taken to this page after login.
From here just click on “APPLY” for the IPO of interest. It will take you to the “ONLINE APPLICATION” page shown below. In this page enter your UPI ID (PhonePe, Google Pay, Amazon Pay or bank provided UPI ID.. just provide whichever is your favorite), bid details and just click on “Submit” button.
In the next couple of minutes you should receive the UPI authorization request on your phone. Based on my personal experience I have found PhonePe UPI to be reliable and get payment authorization request promptly, compared to Google Pay. Would be glad to hear from others what their experience has been with various UPI Apps. You may write your experience as comments on this blog post if you are interested to share it with others.
Note: You can place your IPO bid only when markets are open. If you try to place the IPO order early or late in the day when markets are closed you would get an error message “Sorry! Your bid could not be placed because market is not open”. It would have been convenient if this feature was available. Many other brokers have this feature.
Can You Apply for SME IPO from ProStocks
Yes. You would be able to apply both for NSE and BSE SME (Small and Medium Enterprises) IPOs. You would be able to see list of all SME IPO issues that are open under “Current Issues”. Also be aware that SME IPOs carry higher investment risk. You do better by avoiding any speculative investment here. You can place your bid using UPI as payment option for SME IPOs too.
Can You Apply for NCD issues via ProStocks IPO site
NCD (Non-Convertible Debenture) issues were listed on the ProStocks Site. For an example you may be able to note (in “How To Buy IPO In ProStocks” screen shot posted above) the Kosamattam Finance Limited NCD with coupon rate of 10% (With company symbol as “KFL23“) that was open for subscription at the time of writing this post.
Tracking, Editing And Cancelling Your Orders
You would be able to track, edit or cancel a IPO order you placed by following: Order Book >> My Orders (from the left side menu bar). Refer below screen showing list of my past order (including bid for currently active Ami Organics IPO).
For an illustration I cancelled the IPO bid I placed for Ami Organics and checked its status (from the “My Orders” section). It can be confirmed from below image that “Bid Status” is “Cancelled” now.
Advantages Of Investing In IPO From ProStocks
- Cut off time to apply is 5 PM of IPO closing date (To be safe submit IPO application before 4 PM considering delay involved in receiving UPI pay notification on your UPI App, and other unpredictable technical issues)
- Extremely simple IPO application process. You don’t even have to remember your user ID and password. Simply use your email ID and PAN number combination to login as discussed in Logging Into ProStocks IPO Site.
- ProStocks does not charge any brokerage fee (for Equity delivery trades) which is applicable for shares allotted via IPO as well. So you can sell your shares with zero brokerage!
- ProStocks provide option to open Demat and Trading account for minors, thus providing you opportunity to increase your number of IPO applications.
Disadvantages Of Investing In IPO From ProStocks
- You can’t complete your IPO bid application when the market is closed. You would have to wait till time when markets open to place the IPO bid.
- I found it odd that the ProStocks IPO sub domain (ipo.prostocks.com) web server is not running on secure ‘HTTPS’ protocol, but rather on ‘HTTP’ protocol (no encryption). Though it is not an alarming issue as there is no username / password that is involved (you login with your PAN number and your registered email id).
- There were instances when there is a delay to enable a new IPO on the first day it opens for bidding. For e.g., IPO of Vijaya Diagnostic Center Limited, Ami Organics Limited were not available to apply as of 11:18 AM on 1st September 2021, the opening day of IPO. Refer to below image.