The Initial Public Offering(IPO) of PB Fintech, the owner of online insurance Company Policybazaar and Paisabazaar, will open for subscription today and conclude on November 3. The firm is planning to list on November 15. The company has set the price band of the IPO at Rs 940-980 per share. The company on has already garnered a little over ₹2,569 crore from anchor investors ahead of its IPO.  Policybazaar IPO: Key Details to Know Before Subscription Opens on November 1

While many would be looking to invest in the IPO of PB Fintech, one question that still arises is: how do you subscribe for an IPO?

Before subscribing for an IPO, there are two essential things that you need to understand carefully:

Before subscribing for an IPO, an adult must have a valid trading account along with a PAN card. A trading account is an online investment account that allows traders to purchase security and tracking trades. It is mostly used to buy and sell equity shares in the market.

A trading account is along with a Demat account is essential to invest in an IPO.

It is also important to do a proper research of the company you're interested in investing before applying for an IPO.

Major Broking Firms Provide Two Simple ways to Subscribe for an IPO.

Applying for an IPO Through Online Method

Subscribing for an IPO online is fast and easy, and is a preferable way of applying for an IPO.

The online method reduces time and satisfies all the process of form filling as client data is directly uploaded from a Demat or trading account.

Applying for an IPO Through Offline Method

If clients are uncomfortable with applying for an IPO online, they can visit the nearest branch of their broking firm and subscribe to their IPO.

Whether subscribing an IPO through offline or online methods, filling an ASBA (Application Supported by Blocked Amount) application is mandatory and investors need to provide essential KYC details.

ASBA is a fast and structured way to apply for an IPO. When fund is invested in ASBA, the application of funds is blocked from your bank account. The invested amount gets debited only if shares are purchased and are allotted on the allotment day.

For example if someone has invested money worth 5 lakhs and got allotted shares worth 3 lakhs, then only Rs 3 lakh will be debited from amount, and the remaining account will remain unblocked from the bank account.

To subscribe for an IPO, a valid PAN Card, Demat account number, bank account number, and bidding details are must to complete the process.

After subscribing to IPO, we get a slip of acknowledgement along with a reference number that depicts we have successfully subscribed for an IPO.

(The above story first appeared on LatestLY on Nov 01, 2021 09:23 AM IST. For more news and updates on politics, world, sports, entertainment and lifestyle, log on to our website latestly.com).