If any IPO contains an Employee quota then they give some relaxation for their employees. They might provide some discount to their employees or they have higher chances of getting an allotment.
If you want to earn a high return on your capital then you can invest in good fundamentally strong early-stage Initial Public Offerings(IPO).
If you invest in your company IPO in employee quota, you support your company’s growth and get higher chances of getting an allotment.
Here is a quick guide to understand “How to Apply for IPO in India?”
How to apply ipo in employee category?
In this article, we are going to learn how to apply for IPO under the employee quota online. mainly IPO divided into the following categories.
- QIB- Qualified Institutional Bidders
- NII – Non-institutional bidders
- RII – Retail Individual Investor
- Employee
Before knowing How to apply ipo in employee category? We will understand who is eligible to apply for an IPO in the employee category.
Who is eligible to apply for an IPO in the employee category?
- Full-time and Permanent employee of the issuing company, group company, and Subsidiary company.
- If any employee is substantially related to a full-time or part-time director.
- Whose financial statements are combined with the issuing company and the person who is an employee of that company.
How to Apply for IPO Under Employee Quota Online
To apply for IPO Under the Employee quota is as easy as applying for other categories. There are two methods to Apply IPO under employee quota.
- Trading Platform: You can also apply directly through your brokerage’s online platform (e.g., Zerodha, Upstox).
- Application-Supported by Blocked-Amount (ASBA)
Trading Platform
You can simply apply for an IPO under the employee quota with your broker web and mobile application. It is a normal IPO application journey like any other, only you have to select the Employee category initially.
Here we will take the example of the Zerodha Kite mobile application.
If you don’t have a Zerodha account, here is a quick guide to open a Demat account.
1. First you have to open the Kite application tap on the Bids menu section and click on the IPO tab. The below screen will open. Click on Apply if IPO is enabled for the employee quota.
2. Then select Investor type as ‘Employee’
3. Click on Apply
4. Pass your UPI ID fill bid value and submit your application.
Here you have successfully applied ipo in employee category.
What’s ASBA?
Application-Supported by Blocked-Amount (ASBA) is a simple and easy methodology to apply for IPOs. If you make investments by ASBA, the funds are blocked in your account for the IPO.
If you get an allotment of a particular IPO then blocked funds automatically debit from your bank account. The blocked fund is automatically released to your bank account if you don’t get an IPO allotment.
Most of the Nationalised banks like SBI, HDFC Bank, ICICI Bank, and more. Here is a complete list of ADBA-supported banks.
Read more about how to apply for the retail Category.
If you want to apply with ASBA then you have to go with any nationalized bank net banking. In this post, we will take the example of SBI Online net banking.
Step 1: Log in to your internet banking.
Step 2: Go to e-Services. Then click on Demat Service and ASBA.
Step 3: Then click on IPO service.
Step 4: Accept certain conditions.
Step 5: Then jump to the Category selection page and select the category as an employee.
Step 6: Fill in the required information. Select the cutoff price.
Finally, click on apply. And you successfully Apply for IPO Under Employee Quota Online. This process may vary from bank to bank. But the logic of subscription may remain the same.
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Conclusion
If you want to support your company’s growth and want to increase the chances of IPO allotment then applying for an IPO in the employee category can be a great way to invest. Hope you understand How to apply ipo in employee category.
Happy investing!
Also Read:
Things to Check Before Applying for IPOs