India’s IPO application process has gone through a genuine transformation over the past decade. Ten years ago, applying for an IPO meant physical forms, bank branch queues, and waiting days for refunds to come back. Today, the entire process — from researching the company to blocking application funds to receiving allotted shares — can be completed in minutes on a mobile phone, with funds blocked (not debited) until allotment is confirmed and released automatically if you don’t receive shares.
The mechanics are now straightforward. What still trips up investors — including those with significant market experience — are the specific procedural details: the PAN matching rule, the mandate approval deadline, the cut-off price recommendation, and the distinction between UPI’s ₹5 lakh limit and ASBA’s higher-value pathway. This guide covers all of it.
What You Need Before Applying
Three things are mandatory for any IPO application in India:
A Demat account — shares, if allotted, are credited electronically to your demat account. Without one, no application is valid. Any SEBI-registered broker’s demat account works — Zerodha, Groww, Angel One, Upstox, ICICI Direct, HDFC Securities, and others all support IPO applications through their platforms.
A bank account with either UPI enabled or net banking active — this is where the application amount is blocked during the subscription period.
A PAN card — and critically, the PAN registered on your demat account must match the PAN linked to your bank account and UPI. A PAN mismatch triggers automatic rejection with no recourse.
Additionally, your own UPI ID must be used. Third-party UPI IDs or bank accounts are not permitted since May 2022. If you use someone else’s UPI to apply, the application will be rejected.
Method 1: Applying Through Your Demat App (UPI Route)
This is the most commonly used method for retail investors — fast, mobile-friendly, and available through every major broker app.
Step 1: Open your broker app and go to the IPO section. Most apps — Zerodha Kite, Groww, Angel One, Upstox — have a dedicated IPO tab on the home screen or under the Invest section. You will see a list of currently open IPOs.
Step 2: Select the IPO you want to apply for. Tap on the company name to view issue details: price band, lot size, opening and closing dates, minimum application amount, and issue type (book-built or fixed price).
Step 3: Choose the number of lots and the bid price. For a book-built IPO, always select the cut-off price. This means you agree to pay whatever price is finally discovered through the bidding process, which gives you the maximum allotment probability. Bidding at a specific price below the cut-off risks your application being excluded if the final price is set above your bid. Retail investors are only eligible to apply for amounts up to ₹2 lakh per IPO under the retail category.
Step 4: Enter your UPI ID. Type in your UPI handle — the one linked to the bank account you want to use for blocking. Double-check for typos.
Step 5: Submit the application. The broker’s system uploads your bid to the exchange’s bidding platform and routes a mandate request to your UPI app.
Step 6: Approve the UPI mandate. Open your UPI app — Google Pay, PhonePe, Paytm, BHIM, or your bank’s app — and approve the mandate request that appears. You enter your UPI PIN to confirm. The application amount is now blocked in your bank account but not debited. This step is time-critical — if you don’t approve the mandate before the IPO closes (typically by 5 PM on the last day), your application is treated as invalid.
Important: Apply and approve the mandate at least one day before the IPO closes. On the final day, particularly for heavily subscribed IPOs, UPI mandate systems can experience delays and congestion. Waiting until the last day and last hour introduces avoidable failure risk.
UPI limit: The maximum application amount through UPI is ₹5 lakh per IPO application. If you want to apply for more than ₹5 lakh (which puts you in the HNI/NII category anyway), you must use the ASBA net banking route.
Method 2: Applying Through Net Banking (ASBA Route)
ASBA — Application Supported by Blocked Amount — is the gold standard method for larger applications and for investors who prefer dealing directly with their bank rather than a broker intermediary. Most major banks (SBI, HDFC, ICICI, Axis, Kotak, and others listed as Self-Certified Syndicate Banks on SEBI’s website) have dedicated IPO or ASBA sections in their net banking portals.
Step 1: Log in to your bank’s net banking portal. The navigation varies by bank: SBI: e-Services → IPO (Equity); HDFC: Requests → IPO Application; ICICI: Invest → IPO; Axis: Investments → IPO.
Step 2: Select the active IPO. A list of currently open IPOs appears. Choose the one you want to apply for and review the details.
Step 3: Enter your application details. You need to provide: your Depository (CDSL or NSDL), your DP ID and Client ID (the 16-digit demat account number found in your broker profile or demat account statement), the number of lots you want, and the bid price (select cut-off for retail). Double-check the DP ID carefully — incorrect demat details mean shares cannot be credited even if you are allotted.
Step 4: Submit the application. The bank marks a lien on the application amount in your account. You receive an SMS confirmation from the exchange that your bid has been uploaded.
Step 5: Track the status. You can check bid confirmation in the same ASBA section of net banking, or through your broker app’s IPO section.
Key ASBA timing note: Most banks stop accepting ASBA applications between 2 PM and 3 PM on the final day of the IPO — earlier than the 5 PM UPI deadline. This is to allow time for processing. Submit your ASBA application by midday on the final day to be safe.
ASBA advantage for large applications: Unlike UPI’s ₹5 lakh cap, ASBA through net banking has no per-application upper limit. HNI investors applying for amounts above ₹2 lakh (non-retail category) must use ASBA. The HNI allotment mechanism is different — it is proportional rather than lottery-based — making ASBA the standard route for this investor category.
Method 3: Offline ASBA Through Bank Branch
If you do not have net banking or prefer in-person interaction, you can visit any branch of an ASBA-enabled bank, collect the physical IPO application form (also downloadable from NSE and BSE websites), fill it with your details, and submit. The bank processes it the same way as online ASBA. This method is slower and less convenient but perfectly valid and still used by older investors and those in areas with limited internet access.
After Submitting: What Happens Next
After the IPO subscription period closes (typically 3 days), the registrar — either KFintech or Link Intime for most Indian IPOs — processes all valid applications and finalises allotment.
For retail applicants in oversubscribed IPOs, allotment is by lottery. Each applicant who applied correctly at the cut-off price receives a maximum of one lot in the lottery draw — applying for multiple lots does not improve your chances in a typical oversubscribed retail situation, as the allotment is limited to one lot per unique PAN per IPO. This is an important point that many retail investors miss when they apply for two or three lots hoping to increase chances.
Allotment is typically finalised within 3–5 working days after the IPO closes. Under India’s T+3 listing cycle (mandatory since December 2023), shares are credited to demat accounts and begin trading on the exchange within three business days of allotment finalisation.
If you are allotted shares: the blocked amount is debited from your bank account and shares appear in your demat account one to two days before listing.
If you are not allotted: the blocked amount is released to your bank account automatically, typically within one working day of allotment finalisation. You earn interest on the blocked amount during this period through your savings account.
Checking Allotment Status
Three ways to check:
Through your broker app — the IPO section shows application status and allotment outcome. Through the registrar’s website — visit KFintech or Link Intime, select the IPO, and enter your PAN or application number. Through BSE’s IPO allotment portal — enter your PAN and select the company to see your allotment outcome.
Common Mistakes to Avoid
Not approving the UPI mandate is the most common reason for application failure. Submitting the application through the broker app and assuming that is sufficient — without approving the mandate in the UPI app — means your application is never processed. The mandate must be explicitly approved.
PAN mismatch between demat account and bank account leads to automatic rejection. Verify this before applying to your first IPO, not during the application.
Applying for multiple lots in a heavily oversubscribed retail IPO adds no allotment benefit since retail allotment is limited to one lot per PAN under the lottery system.
Applying on the final day’s last hour risks UPI congestion and mandate delays. Apply and approve a day early.
Bidding at a price below cut-off in a book-built IPO risks exclusion if the final price is set higher.
FAQs
Q. Is there a fee for applying to an IPO through UPI or ASBA?
No. Applying for an IPO through your broker’s UPI mechanism or through bank ASBA is a free service. No brokerage, processing fee, or bank charge applies to the application itself. You pay brokerage only when you sell the shares after listing on the secondary market.
Q. Can I apply for the same IPO from two different demat accounts?
You can apply from two different demat accounts only if they are linked to different PAN numbers. One PAN is allowed exactly one application per IPO regardless of how many demat accounts you have. Two applications from the same PAN in the same IPO results in both being rejected.
Q. What happens if I don’t approve the UPI mandate in time?
Your application is treated as invalid and not processed. Your PAN is not entered into the allotment draw. The mandate request eventually expires without any debit to your account. You simply miss that IPO.
Q. Can I modify my IPO application after submitting?
Before the IPO closes, you can typically cancel your bid through your broker app or bank portal and reapply with revised details. You cannot directly modify — you cancel and reapply. After approving the UPI mandate for a modified application, the new mandate supersedes the old one. Check with your specific broker for their exact modification process.
Q. How do I apply for an SME IPO — is the process different?
The application mechanism for SME IPOs is identical — UPI through broker app or ASBA through net banking. The difference is the lot size (much larger, typically 1,000–3,000 shares) and minimum investment (₹1 lakh+). Most major bank net banking portals support SME IPO applications through the same ASBA section used for mainboard IPOs.
