How to Apply for an IPO in India
A simple, step-by-step guide to applying for an IPO using UPI or ASBA, from placing your bid to checking your allotment.
Applying for an IPO in India is easier than it may seem. If you have an active demat account, PAN, bank account and a supported UPI ID, you can apply for most retail IPOs directly through your broker.
Retail investors can generally apply through UPI or ASBA (Application Supported by Blocked Amount). Here's everything you need to know before submitting your application.
Choose an IPO, enter your bid details, submit the application and approve the UPI mandate. The application amount is generally blocked in your bank account until the allotment process is completed.
What is an IPO?
An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time and becomes listed on a stock exchange.
Investors can apply for shares during the IPO subscription period. After the issue closes, shares are allotted according to the applicable allotment process.
Applying for an IPO does not guarantee an allotment. If an IPO is heavily oversubscribed, you may receive fewer shares than requested or no shares at all.
What Do You Need to Apply for an IPO?
Before applying, make sure you have these essentials ready:
- ✓ An active demat account
- ✓ PAN card
- ✓ Bank account linked to your application
- ✓ UPI ID linked to your bank account
- ✓ Sufficient funds in your bank account
- ✓ Completed KYC
How to Apply for an IPO Using UPI
UPI is one of the simplest ways for retail investors to apply for an IPO. The process can usually be completed through your broker's app and UPI application.
Open Your Broker's App
Log in to your trading or investment app and open the IPO section.
Depending on the platform, you may find it under Invest → IPO or Stocks → IPO.
Select the IPO
Choose the IPO you want to apply for and review the issue details before placing your bid.
GMP can be useful as a market indicator, but it is unofficial and does not guarantee the actual listing price.
Enter Your Bid Details
Select the number of lots you want to apply for.
You can generally enter a bid within the IPO's price band. For eligible retail applications, selecting Cut-off means you agree to purchase the shares at the final issue price.
Enter Your UPI ID
Enter the UPI ID linked to your bank account and double-check it before submitting the application.
An incorrect or unsupported UPI ID can cause the mandate request to fail.
Submit the IPO Application
Before submitting, verify:
- Bid quantity
- Bid price
- PAN details
- UPI ID
Once everything is correct, submit the application.
Approve the UPI Mandate
After submitting your application, you should receive a UPI mandate request in your UPI app.
Check the IPO name, amount and bank account before approving the mandate with your UPI PIN.
The required amount is generally blocked in your bank account rather than immediately debited.
Wait for Allotment
Once the IPO closes, the registrar processes the allotment.
The applicable amount is debited and shares are credited to your demat account.
The blocked amount is released according to the applicable process.
Only the amount corresponding to allotted shares is debited.
How to Apply for an IPO Through ASBA
ASBA stands for Application Supported by Blocked Amount. Instead of using UPI, you can apply through your bank's supported ASBA facility.
Open your bank's internet banking portal.
Choose the IPO currently open for subscription.
Enter PAN, demat and bid information.
Submit your ASBA application.
Wait for the allotment process to complete.
UPI vs ASBA
| Feature | UPI | ASBA |
|---|---|---|
| Application Method | UPI App | Bank / Internet Banking |
| Amount Blocked | Yes | Yes |
| Demat Account | Required | Required |
| UPI Required | Yes | No |
| Beginner Friendly | Very Easy | Easy |
How to Check IPO Allotment Status
Once the allotment is finalized, you can check whether you received shares. Depending on the IPO, allotment information may be available through the IPO registrar and other supported channels.
You may need:
- PAN
- Application number
- Demat account details
Check Your IPO Allotment Status
Find the relevant allotment-checking information for your IPO in one place.
What Happens After IPO Allotment?
If you receive an allotment, the shares are credited to your demat account before the listing date.
Once the shares are listed on the stock exchange, they become available for trading.
If you don't receive an allotment, the blocked funds are released according to the applicable process.
IPO Application Checklist
Demat account is active
PAN details are correct
Bank account has sufficient funds
UPI ID is linked to the correct bank account
IPO dates are checked
Lot size and minimum investment are understood
Bid quantity and price are correct
UPI mandate has been approved
Frequently Asked Questions
Can I apply for an IPO without a demat account?
No. A valid demat account is required to receive IPO shares if you are allotted them.
Does applying for an IPO guarantee an allotment?
No. An IPO application does not guarantee that shares will be allotted to you.
Is IPO money deducted immediately?
Generally, the application amount is blocked in your bank account. The final debit depends on the allotment outcome.
Can I apply for an IPO using UPI?
Yes. Eligible retail investors can use a supported UPI ID to submit an IPO application and approve the required mandate.
What happens if I don't receive an IPO allotment?
If you don't receive shares, the blocked amount is released according to the applicable process.
Can I track IPO GMP before applying?
Yes. GMP is commonly tracked before an IPO closes. However, GMP is an unofficial indicator and should not be treated as a guaranteed listing-price prediction.
Applying for an IPO is simple
Before investing, understand the IPO's price band, lot size, subscription data, company fundamentals and associated risks.