• HDFC securities
• 21 Oct 2021
• Apply IPO using UPI

highest number of IPOs in a single year in the past 15 years.

 

One of the main reasons for such record-breaking numbers is the huge influx of investors in the Indian stock market. The pandemic-led economic uncertainty drove people like you to seek alternate means of earning some additional income. As a result, the number of retail investors multiplied exponentially. So much so that the number of Demat accounts in the country rose 50% between March 2020 and July 2021. Experts say that the sheet volumes of IPO applications from retail investors is unprecedented, with some issues receiving over 30 lakh applications, representing 100 times greater demand than supply.

 

But today’s retail investor is very different from their previous generations. They are tech-savvy and have high expectations of ease of transactions and convenience in investment. HDFC Securities, with its deep insights into the changing investor preferences and needs, has launched the facility for its clients to invest in IPOs via the UPI mode.

 

Why the UPI Mode?

The Unified Payments Interface (UPI) has gained massive traction in recent times. Transaction volumes more than doubled from 1.25 billion in March 2020 to 2.73 billion by March 2021. In fact, the March numbers reflected a 20% rise from the February figures. Transaction value crossed the ₹5 trillion mark in March, rising 18% from the February levels.

 

The numbers have continued to rise since then. June recorded 2.8 billion transactions, worth a whopping ₹5,47,373 crores, rising 10.6% in terms of volumes and 11.56% in terms of value from May. On a daily basis, 9-10 crore UPI transactions are being processed as of August 2021.

 

The UPI mode was already popular even before the pandemic. However, the need for contactless payments during the COVID-era has given a huge boost to adoption rates. There are multiple reasons for the popularity of this means of payments in India. It is incredibly simple, completely free of charge and occurs instantaneously. Most importantly, it is absolutely secure.

 

The UPI mode allows users to transfer money in real time, across multiple bank accounts, without needing to input any bank details of either the sender or the recipient. Transfers can be made at any time and from anywhere, regardless of bank working hours. All that is required is a UPI ID and the PIN.

 

The transactions are secured via high-end encryption as well as two-factor authentication, such as an OTP or UPI PIN to verify transactions. This makes it difficult to malicious elements to hack into accounts or tamper with transactions.

 

Applying for IPOs via UPI

Given how simple, convenient, and secure the UPI method is, as well as its huge popularity, HDFC Securities now offers investors the choice to apply for any IPO of their choice via this mode. This eliminates the long and tedious process of transferring the required funds from one account to another to be able to apply for an IPO.

 

Now, you can complete the application process in a few simple steps:

 

• Login to your online HDFC Securities trading account with your Login ID, Password and Date of Birth.

• Click on IPO/OFS tab on the menu bar.

• Select the IPO you want to apply for.

• Select the Investor Status as “Retail” and click “OK” on the pop-up window.

• Click on “Apply Using UPI” and then on “OK” on the pop-up window.

• Enter your preferred bid quantity, price per share and your UPI ID and select the bank.

• Click on “GO” and then “OK” to proceed.

• Read the Disclaimer and click on “I Agree” to place the order.

• Accept the UPI mandate in the UPI app linked to the UPI ID entered at the time of placing the order.

 

You can check the order details in the Order Book under the IPO/OFS tab at any point after your order has been successfully placed. To make things even simpler, HDFC Securities also allows you to place your IPO application via the UPI mode by calling your RM.

 

With a focus on easing access to the stock markets for investors, HDFC Securities constantly innovates with new features that simplify the investment process. This facility of participating in IPOs via the UPI method is one of the latest efforts in this direction.

 

*Disclaimer - The information is only for consumption by the client and such material should not be redistributed.