How to Apply for IPO

A step-by-step guide to applying for an IPO in India through ASBA, UPI, or your broker.

What is an IPO Application?

When a company goes public, it invites the public to buy shares for the first time through an Initial Public Offering (IPO). You apply during the subscription window (typically 3 days) and, if allotted, become a shareholder on listing day.

Before You Apply – Checklist

  • Active Demat account (with any SEBI-registered depository participant)
  • PAN card linked to your Demat account
  • Bank account linked to UPI ID or enabled for ASBA
  • Sufficient funds in your bank for the application amount

Method 1 – Apply via UPI (Recommended)

UPI-based IPO applications are the fastest and most widely used method today. Follow these steps:

  1. Log in to your broker app or bank app (Zerodha, Groww, Upstox, HDFC Securities, etc.).
  2. Navigate to IPO section and select the open IPO.
  3. Choose the number of lots you want to apply for.
  4. Enter your UPI ID and submit the application.
  5. Open your UPI app (GPay, PhonePe, Paytm, BHIM) and approve the mandate.
  6. Funds are blocked (not debited) until allotment.

Mandate approval deadline is typically 5:00 PM on the closing day. Do not miss it – the application will lapse.

Method 2 – Apply via ASBA (Bank Branch / Net Banking)

ASBA (Application Supported by Blocked Amount) lets you apply directly through your bank. Funds stay in your account and are blocked until allotment.

  1. Log in to your bank's net banking portal.
  2. Look for IPO / ASBA under Investments.
  3. Select the IPO, enter lot quantity and price band.
  4. Submit – funds are auto-blocked from your account.

Lot Sizes and Price Bands

Each IPO has a minimum lot size (e.g., 1 lot = 35 shares). You must apply in multiples of the lot size. The price band is the range (e.g., ₹420–₹440) at which you can bid. Applying at the cut-off price means you accept whatever final price SEBI approves – strongly recommended for retail investors.

After You Apply

  • Allotment date: Typically 6 days after subscription closes. Check your Demat account or the registrar's website.
  • Refund: Unblocked within 1 business day of allotment.
  • Listing date: Usually 6 days after allotment. Your shares appear in the Demat account before market opens.

Common Mistakes to Avoid

  • Not approving the UPI mandate on time
  • Applying from multiple accounts with the same PAN (leads to rejection)
  • Not having sufficient bank balance when mandate is approved
  • Bidding below the cut-off price
Disclaimer: IPOGaze provides this information for educational purposes only. This is not financial advice. Please consult a SEBI-registered investment advisor before making investment decisions.