How to Apply for an SME IPO in the Groww App

Learn the step-by-step process to apply for an SME IPO using the Groww app, from account setup to application submission and monitoring your application status.
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How to Apply for an SME IPO in the Groww App

Investing in Small and Medium Enterprises (SME) Initial Public Offerings (IPOs) can be a significant opportunity for investors, and platforms like Groww make this process straightforward. Here’s a detailed guide on how to apply for an SME IPO using the Groww app.

Step 1: Download the Groww App and Create an Account
First, you need to download the Groww app from the Google Play Store or Apple App Store. Once installed, open the app and register for an account by entering your personal details such as your name, email address, and mobile number. You will also need to complete your KYC (Know Your Customer) process, which includes providing your PAN (Permanent Account Number), Aadhar number, and bank account details.

Step 2: Activate Your Demat Account
After your Groww account setup, you must activate your Demat account, which is necessary for trading in securities, including SME IPOs. This may involve additional verification, including in-person verification (IPV) and documentation related to your financial history.

Step 3: Update Your Bank Details
Ensure that your bank account details are updated and linked to your Demat account as this will be used for transactions related to your IPO applications and any refunds or shares allotted.

Step 4: Check Eligibility for SME IPO
Before applying, check the eligibility criteria for the SME IPO. Some IPOs may have specific requirements, such as a minimum number of shares to be applied for, which can differ from mainstream IPOs.

Step 5: Find the SME IPO
Navigate through the Groww app to find the IPO section. Here, upcoming, ongoing, and past IPOs are listed. Filter or search for SME IPOs specifically. Select the SME IPO you wish to invest in to view its details, including the issue size, price band, and dates for the IPO.

Step 6: Apply for the IPO
Once you decide to proceed with an IPO, select the ‘Apply’ option. You will need to enter the number of lots you wish to apply for. SME IPOs often have a different lot size compared to regular IPOs, so pay attention to the lot specifics.

Step 7: Confirm Application Details
After entering your desired investment amount or the number of lots, recheck all the details, including your UPI ID linked to your bank account, which will be used for the payment. Once confirmed, submit your application.

Step 8: Authorize Payment via UPI
Once your application is submitted, you will receive a payment request on your UPI app. You need to approve this request to block the IPO amount in your bank account. The funds will only be deducted if you are allotted shares in the IPO; otherwise, they are released back into your account.

Step 9: Track Your Application
Post-application, you can monitor the status through the Groww app. The app will display the application status as "pending," "allotted," or "not allotted," along with information on any refunds if applicable.

Step 10: Check Allotment and Trading
If shares are allotted to you, they will be credited to your Demat account. Details regarding the allotment and the date when the shares will be listed on the exchange will also be provided in the app, enabling you to trade the shares once they are listed.

Applying for an SME IPO through the Groww app involves careful consideration of the eligibility criteria, lot size, and timing of the application. The app simplifies much of the process, making it accessible even for those new to investing in IPOs. Remember, investing in SMEs involves risks, as these are typically smaller companies with less market visibility. However, they can also offer substantial growth potential.