How to Apply for an IPO in India

Not long ago, applying for an IPO meant visiting a bank branch, filling out a physical form, and waiting weeks for a refund cheque if you did not get allotment. Today, the entire process takes under five minutes on your phone. Yet every IPO season, thousands of applications get rejected because investors miss a mandate approval, enter a wrong account number, or apply twice from the same PAN. The process is simple. But it is not forgiving.

This guide walks you through every step, so you never leave an application on the table.

Before you open any brokerage app, make sure you have three things in place. Without all three, your application will either be rejected or you will be unable to complete it.

• A demat account with a SEBI registered depository participant. This is where your shares are held electronically if you get allotment. Without a demat account, there is nowhere to credit the shares and your application is invalid.

• A PAN card. Your Permanent Account Number is mandatory for every IPO application. It is also how the system detects and rejects duplicate applications.

• A bank account linked to UPI or with ASBA enabled net banking. Your application amount is blocked in this account during the subscription period, not debited. You continue to earn interest on those funds while they are blocked.

One PAN, One Application

SEBI rules allow only one application per PAN per IPO. If you submit two applications from the same PAN, even from different broker accounts or banks, both will be rejected outright. This is one of the most common and easily avoidable mistakes retail investors make.

The Key Dates Every Applicant Must Track

3 Days Typical IPO subscription window

T+6 Working days to allotment after IPO closes

₹5L UPI transaction limit per IPO application

Every IPO follows a predictable calendar. Knowing these dates prevents last minute errors and missed windows:

Event	When It Happens	What You Should Do
IPO Opens	Day 1 of subscription	Read the RHP and decide your lot quantity
IPO Closes	Day 3, typically at 5 PM	Submit application and approve UPI mandate well before closing
Allotment	Approx T+6 working days after close	Check registrar website using PAN or application number
Refund or Credit	1 working day after allotment	Blocked funds released or shares credited to demat account
Listing	T+6 or T+7 after IPO closes	Shares begin trading on BSE or NSE

The Two Ways to Apply: UPI vs ASBA

There are two valid payment methods for IPO applications in India. Both block your funds instead of debiting them. Neither charges a fee. Your choice depends on the application size and your personal preference.

Feature	UPI Method	ASBA via Net Banking
Best For	Retail investors applying up to ₹5 lakh	Larger applications or non UPI users
Where You Apply	Broker app, NSE or BSE website	Your bank’s net banking portal directly
Mandate Required	Yes. Approve within 30 minutes of applying	No separate mandate step needed
Speed	Fastest. Complete in under 5 minutes	Slightly longer due to bank portal navigation
Interest on Block	Yes. Your money stays in your account	Yes. Your money stays in your account
Offline Option	Not available	Yes. Physical form at your bank branch

For most retail investors, the UPI method via a broker app is the easiest and most recommended route. Apps like Zerodha, Groww, Angel One and Paytm Money all have a dedicated IPO section where the process is guided and takes just a few minutes.

 

Step by Step: Applying via Broker App (UPI Method)

This is the most common route for retail investors. The steps below apply to virtually all major broker platforms.

1. Log in to your broker app and go to the IPO section.

Look for tabs labelled IPO, Invest or Current Issues. You will see a list of all currently open IPOs.

2. Select the IPO you want to apply for.

Click on the IPO name to see its details: price band, lot size, issue dates, and the company’s basic information.

3. Enter your bid quantity and select the cut off price.

Choose the number of lots you want to apply for. Then select the cut off price option rather than entering a specific price. This ensures your application is valid at whatever final price is discovered within the band. Retail investors are always advised to bid at cut off.

4. Enter your UPI ID.

This is the UPI ID linked to your bank account (for example: yourname@okaxis or yourname@ybl). Make sure it is the same UPI ID linked to your registered bank account. Third party UPI IDs will lead to rejection.

5. Submit the application.

Review all details carefully before confirming. Once submitted, most brokers do not allow revision. Check the lot size, UPI ID, and price selection one more time.

6. Approve the UPI mandate on your UPI app.

This is the step most investors miss. After submitting, you will receive a mandate request on your UPI app (Google Pay, PhonePe, BHIM, or your bank’s UPI app). You must approve this within 30 minutes. If you miss it, your application is treated as invalid. On the final day of the IPO, approve the mandate well before 5 PM to avoid system delays caused by high traffic.

Always Apply Early in the Window

Around 65 to 80 percent of all IPO applications come in on the last day of the subscription window. This causes UPI server congestion and mandate failures. Applying on Day 1 or Day 2 avoids this risk entirely and gives you time to verify the application before the IPO closes.

Step by Step: Applying via Net Banking (ASBA Method)

If you prefer to apply directly through your bank or are applying for more than ₹5 lakh (which moves you to the HNI category), the ASBA net banking route is the right choice.

7. Log in to your bank’s net banking portal.

Go to the IPO or ASBA section. Most major banks including SBI, HDFC, ICICI and Axis Bank have a dedicated IPO tab.

8. Select the active IPO from the list.

Choose the IPO you wish to apply for from the available options.

9. Enter your demat account details, lot quantity, and price.

Provide your DP ID and client ID (found in your demat account statement), select the number of lots, and choose the cut off price.

10. Confirm and submit.

Your bank blocks the application amount immediately. No UPI mandate approval is needed. The funds stay blocked until allotment is finalised.

How to Check Your Allotment Status

Once the IPO closes and allotment is finalised (typically T+6 working days), you can check your status through any of these three methods:

• Registrar website: Every IPO appoints a registrar such as Link Intime India or KFintech. Visit their website, go to the IPO allotment status section, and enter your PAN number or application number.

• BSE or NSE website: Both exchanges publish allotment data. Search for the IPO name and enter your PAN to see your status.

• Your broker app: Most broker platforms show the allotment result directly in the IPO section of your account.

If allotment is successful, shares are credited to your demat account before the listing date. If not, the blocked amount is released back to your bank account within 1 working day of allotment. No action is needed on your part.

Common Mistakes That Get Applications Rejected

Not approving the UPI mandate: The single biggest reason applications fail. Always approve within 30 minutes.

Applying with a third party UPI ID or bank account: Your UPI ID must belong to the same PAN holder applying for the IPO.

Bidding at a specific price instead of cut off: If the discovered price is higher than your bid, your application is rejected.

Wrong demat account details: A single digit error in your DP ID or client ID means shares cannot be credited even if you win the lottery.

Multiple applications from the same PAN: Both applications are cancelled. You lose the opportunity entirely.

Applying at the last minute on Day 3: Server load is highest then. Apply on Day 1 or Day 2 to be safe.

The mechanics of applying for an IPO are now straightforward. But the decision of whether to apply at all is a separate question entirely. The application process will not protect you from overpaying for a business with weak fundamentals or aggressive valuations. According to Prime Database, average listing gains in India fell to around 10 percent in 2025 from 30 percent in 2024. The IPO market is maturing, and blind subscriptions are increasingly costly.

Before you apply, spend at least 15 minutes reading the company’s financials in the RHP. Check how the proceeds will be used. Compare the valuation to listed peers. If the numbers hold up, then apply with confidence.

Applying for an IPO in India in 2026 is faster and more accessible than it has ever been. The entire process, from selecting an IPO to approving your UPI mandate, takes under five minutes. What takes longer, and matters far more, is the research you do before those five minutes begin.

Get your demat account ready. Link your UPI. Read the RHP. Apply early. Bid at cut off. And if you do not get allotment, do not be discouraged. With over 100 mainboard IPOs and 250 plus SME IPOs listed in 2025 alone, there is always another opportunity around the corner.