Is it mandatory to have a PAN Number to apply in an IPO?

Short Answer

Yes, it is mandatory to have a PAN number to apply for an IPO since July 2006 as per Securities and exchange board of India (SEBI).

Detailed Answer

IPO is an abbreviation for Initial Public Offerings. It is basically a type of public offering in which shares of a company are sold usually when the company needs additional funds which can help them in:

  1. Expanding the business
  1. Increase their working capital,
  1. Repaying the debts, etc.

It is usually after companies convert from private to public and also meet the requirements of Securities and exchange commission-SEC and exchanges. Investment banks are employed by businesses to sell, calculate demand, set the IPO value and date, etc. The people who can invest in IPOs are:

  1. Institutional buyers,
  1. Non-institutional buyers,
  1. retail investors (individual).

Anyone can apply for an IPO offline or online.

For an Offline Application:

  1. You need to fill the application form with the details as- Name, PAN, Demat number, bid price and quantity in the collection centre.
  1. The bank will submit the form and make sure that all the details are correct and verified so that there are no chances of rejections.

For an Online Application:

  1. Go to your trading account and select the IPO,
  1. You need to then maintain the funds in the account after that enter bid price and quantity of the IPO you would like to invest in and then submit.

However, you apply, the amount will then we deducted from your bank account or will just be unable for your use and it is invested in the IPO allotment. Lastly, it gets blocked or unblocked depending upon your outcome of the application.

It is mandatory to have a PAN number to apply for an IPO since July 2006 as per Securities and exchange board of India (SEBI). While applying for an IPO, PAN is an important column to be filled in the form and also the form should be filled with utmost attention as- if there are any mistakes or if the column is blank then the application form will be rejected.

Therefore, you just need to mention your PAN number in the form, attaching the photocopy of the PAN is not necessary.

So, are you thinking to apply for an IPO? Be aware of the requirements beforehand so you don't miss the IPO you are interested to apply.

Tagged With: ipoapply ipopanipo application
Categories: IPO Basics
Ask Your Query for FREE, Get quick answers from our FINTRAKK community!
Discussion (0)
Related FAQs
Can I apply an IPO application in the name of Minor or HUF?

Yes, you can apply for an IPO application under a minor or HUF's name, provided they have different PAN card numbers. Minors can open a Demat account with their parent’s PAN Card and bank account.

How to check IPO allotment status in India?

IPO's (Initial Public Offering) is very popular right now. Therefore getting an allotment is not easy. There are two different ways in which you can find out your allotment status. These are through the BSE India website and the company Registrar's website. Know the details and another bonus way of finding out allotment status here.

Can I apply for more than 1 Lot in IPO from different Demat accounts?

Yes!, one can apply 1 Lot from different Demat accounts but they have to make sure that the other Demat account should not be mapped under their name or PAN Card. If one applies through 2 or more Demat accounts that are mapped under their name then all of the applications will get rejected.

Can I apply more than one IPO application in my name from different saving bank accounts in same bank or different banks?

Only one PAN card can be used for one application. No matter how many different savings account details you might utilize, if there is the same PAN number in more than two applications, then all of them would be revoked.

What is Basis of Allocation or Basis of Allotment in IPO?

It is the document issued by the owner of the IPO for share allocated as per the regulatory guidelines in an IPO. This contains all the crucial details about the Initial Public Offering.

How to Check IPO allotment in Zerodha?

There are many ways to check the IPO allotment status but Zerodha doesn't provide this facility on their website.** To check the allotment status you can visit the website of the registrar of the IPO**, for example, Link Intime, Karvy. With the help of a PAN number, you can easily check the status.

How to apply IPO in Zerodha? Buy IPO Online

If you are a Zerodha customer, you can apply for IPO online through Zerodha Console (Zerodha Back-office). The process for applying an IPO process has been explained in detail above. Here are few other answers to important queries that you may want to learn.

How to apply for IPO in Stoxkart?

Stoxkart online discount broker also provides IPO investment facility to clients. The best part is that stoxkart facilitates both the Indian as well as NRIs to invest in IPO online.

How to increase IPO allotment chance?

Subscribing for an IPO with multiple accounts, avoiding last-day applications, and choosing minimum bids are few ways to increase IPO allotment chances.

Can I apply in an IPO through multiple applications on same name?

No, a person cannot apply for a single IPO more than ones. There are strict rules and regulations followed in this matter. However, his/her family members can apply for the IPO under their name provided they have a demat account and PAN number.