How to Apply for Brookfield REIT IPO?

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A majority of the chunk who feels interested in the upcoming IPO of Brookfield must be familiarised with the process of “How to apply Brookfield REIT IPO.”

But first, we need to understand the meaning of IPO and how does it work?

IPO stands for Initial Public Offering and is a method by which the shares of a private listed company for the very first time become public in the market.

The IPO Process is followed in an intensive way through the formulation of DRHP, also known as Draft Red Herring Prospectus.

Before stepping into the market the DRHP is presented before the highest Exchange Board of India named as SEBI or Securities and Exchange Board of Market.

Once a green flag is waved off by SEBI, the shares of the company are listed in various exchanges of India such as NSE and BSE under the IPO segment to be bought by the retail investors.

Each IPO has its own varied objectives such as expansion in the company size, clearing debts, raising capital for corporate purposes, and many more! It all ranges from company to company.

Now, the main question arises here- What is Brookfield? So, without much wait let’s have a piece of quick information in regards to the same.

Brookfield REIT is an international real estate vehicle firm with major four locations in India such as Mumbai, Noida, Kolkata, and Gurugram- which was formerly known as Gurgaon.

Under its asset management, the firm is believed to be the largest commercial real estate vehicle company that has assets over $550 million (US dollar) and is sponsored by the affiliation of Brookfield Asset Management or BAM.

The company is strongly taking one step ahead in technology and services level, which is why it is known to design high-quality real estate products in the market.

The opening date of Brookfield REIT IPO is 03 February 2021 and its ending date is 05 February 2021. The IPO size is Rs. 3800 crores (approximately) with a lot size of 200 shares.

The price of Brookfield REIT IPO is Rs. 274 to Rs. 275 per equity share and will be listed in NSE and BSE.

Now, let us quickly dive into the process of applying for Brookfield REIT IPO.

Brookfield REIT IPO How to Apply

You can apply for Brookfield REIT IPO in a plethora of ways.

Having a demat account is highly important and in case you do not have one, then we recommend you to open the same with a prominent stockbroker offering the lowest charges and cheapest AMC or Annual Maintenance Charges.

If you are looking to have such a useful demat account, then simply add your full name and valid contact number in the below form and shortly we will arrange a callback for you!

Once you have a demat account, you can apply for the Brookfield REIT IPO through ASBA with the registered banks or even you can use the UPI payment method.

ASBA is a well-known process however UPI is a newly opened project opened by SEBI in 2019 with an objective to make the application process quick and hassle-free.

Hence, let’s quickly understand both these ways in a detailed way in the following sections.

Apply for Brookfield REIT IPO through ASBA

Before going through the application process of ASBA, let’s learn what ASBA is and what roles does it play in the IPO process.

ASBA is a short-form for Application Supported by Blocked Amount. Through this method, you can apply for an IPO through several approved banks.

Under this process, all your transaction activity is directed and conducted by registered banks. This clearly means that banks apply for the IPO on your behalf and also pay the desired amount for the bid.

Now, you might be confused that how a bank can transact or pay the amount from your registered bank without your approval? Well, it is not the case as it seems to be!

Bank does not use your money rather it bid on your behalf and makes the corresponding payment by itself however it blocks the amount in your bank account.

Also Read: How to apply for an IPO in Upstox?

This amount remains blocked until shares are allotted to you on the allotment day. If the shares or the bids come in your favor then the amount is directly dedicated to your account.

And, if unfortunately, you lose the deal, then the amount is unblocked and you can use it.

Do you know that there are more than 65 banks that are registered under the ASBA process?

Surprisingly, all the major banks such as State Bank of India (SBI), Bank of Baroda (BOB), United Bank of India, Axis Bank, HDFC Bank, Citi Bank, Canara Bank, Punjab National Bank (PNB), and many more are included in this list!

A complete list of these banks can be seen on the official website of SEBI. So, once you have selected this way of applying, you need to focus on the following key points:

A bid cannot be placed or approved under any reserved category detailed in IPO such as retail investors (RII), qualified institutional investors (QII), etc.
The application should be applied in a demat form and investors must hold these shares specifically in the demat form.
An active demat account is a must. Without having a demat account, an investor cannot apply in IPO.
The application must be made through a registered bank providing the feature of ASBA.
At least Rs. 2 lakhs of investment in the IPO shares is mandatory.

Further, this process can be done in two different ways- online method and offline method.

Online Method of Applying IPO through ASBA

The detailed method of applying for Brookfield REIT IPO through the ASBA online process is given as below-

Open your registered bank portal and sign in by entering the correct details.
Under the menu button, click on the “Request” button.
Now, you will be directed to a new page to apply for the “IPO Application”.
Select the IPO in which you wish to apply.
Here, fill in the complete details related to the IPO such as entering bid quantity.

Please Note: An investor can place up to 3 bids at a time.

Fill in any other required details and once completed, click on the “submit” button.

Post completing the process, the bank will automatically block the amount till the allotment date.

Now, let’s dive into the offline method.

Offline Method of Applying IPO through ASBA

This is a traditional way of applying IPO in the ASBA process. Here, the investor directly visits the nearest branch and fill the form by listing the following details in the application:

Demat Account
PAN number
IPO name
Bid Price
Bid Quantity
Bank account number

Once you have submitted the application, it will proceed with the further process and your amount will be blocked from your registered bank account.

Now, let’s discuss the UPI method of applying Brookfield REIT IPO.

Apply for Brookfield REIT IPO through UPI

This is one of the simplest and convenient ways to apply for Brookfield REIT IPO. This method was introduced in 2019 by SEBI to improve the application process in IPO.

The entire method to apply for Brookfield REIT IPO through the UPI method is as below-

Search for a UPI application on your mobile and quickly download the same.
Now, register your bank account in the application.
Once you register, you will be given a UPI ID.
This UPI ID will be used while filling the application form.
Then, you will receive a request to block your amount in your registered bank.
Approve the request and your amount will be blocked till the allotment day.

If the allotment of shares comes in your favor, then the amount will be instantly dedicated otherwise unblocked for further use.

This process will be similar for each IPO coming into the stock market.

Conclusion

We hope that through the above documentation, you might have received complete detail on the application process. As said before, there are two ways to apply for an IPO- ASBA (online and offline), and UPI.

If you are keen to apply for this IPO, then you must be aware of the objective of this IPO. According to DHRP, the main objective of the IPO is to raise money so that the firm can pay its debts either fully or partially.

Additionally, through this IPO they plan to fulfill their desired corporate goals.

We would like to suggest that you must have an in-depth knowledge of the IPO, understand the company’s performance, analyze its ratios and earnings, and perform another necessary task.

We hope that through this documentation, you will be able to get an answer to the question- How to apply Brookfield REIT IPO. In case, you have any doubt or query, please write to us in the section given below.

Want to apply for IPO in a seamless manner, open a demat account now.