Applying for an initial public offering (IPO) involves more than just choosing a company and placing a bid. From understanding investor categories and eligibility for reserved quotas to knowing how allotment works and when funds are unblocked, investors need to get several details right.

As Jio Platforms gears up to debut on Dalal Street, here is a ready reckoner on all questions and doubts surrounding applications for not just Jio's, but all initial public offerings.

What are the different investor categories in IPOs?

IPO investors are classified into three categories:

The issue opens on October 19 for public subscription and the way for investors to apply is through their brokers, banks or any authorised IPO platforms.

Select the eligible category, enter your PAN, demat and bid details, and approve the payment mandate through UPI or ASBA. Employee and shareholder categories require meeting the specific eligibility conditions.

How to apply under the shareholder category?

A shareholder quota reserves a portion of an IPO for eligible shareholders of a specified company. For the Jio Platforms issue, the firm has reserved Rs 2,500 crore of its Rs 30,213 crore for shareholders of Reliance Industries. The maximum size of bids for this category is Rs 2 lakh, with no minimum stated size.

Any eligible shareholders of Reliance Industries must hold shares of the firm. They can select the shareholder category while applying and provide the required demat and PAN details.

Can you buy a share of Reliance Industries today to be eligible for the shareholder category?

No. Reliance Industries shareholders had to buy RIL shares by October 13, a day before the October 14 eligibility cut-off date announced by the company.

The difference stems from India’s T+1 settlement system, under which shares bought on October 14 would be credited only after the cut-off date, making investors ineligible for the shareholder quota.