Applying for an IPO in India is simple once you understand the 3 main methods. This guide covers UPI through broker apps, ASBA via net banking, and direct via registrar – with step-by-step instructions and pro tips.
Quick Comparison: 3 Ways to Apply for an IPO
| Method | Speed | Ease | Best For |
|---|---|---|---|
| UPI via Broker App | 2 minutes | 5/5 Easiest | Most retail investors |
| ASBA Net Banking | 5-10 minutes | 3/5 Medium | NRIs, HNI, large bids |
| Registrar Direct | 10-15 minutes | 2/5 Advanced | Edge cases, rarely needed |
Method 1: Apply via UPI (Easiest, 90% of Users)
This is the modern way – fast, mobile-friendly, no paper forms. Used by Zerodha, Groww, Upstox, Angel One, ICICI Direct, HDFC Securities, Paytm Money, and most brokers.
Step-by-Step (Using Zerodha as Example)
- Open broker app – Login to your broker (Kite by Zerodha, Groww, Upstox, etc.).
- Navigate to IPO section – Usually under “Invest” or “More” menu.
- Select the open IPO – You will see all currently open IPOs with their close date.
- Read company details – Price band, lot size, minimum investment shown.
- Enter bid details – Quantity (number of lots, 1 lot minimum for retail), Price (tick “Cut-off price” – recommended).
- Enter UPI ID – Same UPI you use for payments (Google Pay, PhonePe, BHIM, Paytm).
- Submit application – You will receive an SMS/email confirmation.
- Approve UPI mandate – Open your UPI app within 24 hours. You will see a payment request from [Issuer] IPO. Click Accept/Pay and enter UPI PIN.
- Funds blocked, not deducted – Amount stays blocked in your bank account until allotment. If you do not get allotment, money is unblocked automatically.
Broker-Specific Tips
- Zerodha (Kite): Go to Console then IPO. Apply via Console for cleaner interface.
- Groww: Open app, tap IPO tab on bottom navigation.
- Upstox: Apply via Invest then IPO. UPI mandates often need re-approval on retry.
- Angel One: Web platform is more reliable than mobile for SME IPOs.
- Paytm Money: Limited to mainboard IPOs only – SME IPOs not supported.
Method 2: Apply via ASBA (Net Banking)
ASBA = Application Supported by Blocked Amount. Apply directly through your bank net banking portal. Slightly more steps but supports larger bids than UPI (UPI limit: 5 lakh per application; ASBA: 2 lakh retail / unlimited HNI).
Step-by-Step
- Login to net banking – Major banks supporting ASBA: SBI, HDFC, ICICI, Axis, Kotak, Yes Bank, IDFC First, IndusInd.
- Find IPO section – Usually under Investments or Demat & Trading.
- Select Apply for IPO.
- Pick the IPO from the open list.
- Enter bid details – Lots, price (cut-off recommended), category (Retail/HNI).
- Enter Demat account number – 16-digit Demat ID (NSDL or CDSL).
- Submit – Funds get blocked instantly in your bank account.
- Wait for allotment – Block remains until allotment date.
ASBA Advantages over UPI
- No 24-hour mandate expiry – funds blocked directly.
- Higher application limit (2 lakh+ for retail, no limit for HNI).
- No third-party UPI app dependency.
- Lower failure rate during heavy IPO load days.
Method 3: Apply via Registrar (Rare Cases)
Most retail investors never use this method. It is only relevant for: Physical share applications (very rare now), HUF/Trust/institutional accounts, NRI applications without trading account.
For these cases, visit the registrar website (KFintech, Link Intime, Bigshare) directly during the IPO open period.
What is the Minimum Investment for an IPO?
| IPO Type | Minimum Investment | Typical Range |
|---|---|---|
| Mainboard IPO (Retail) | ~15,000 | 14,000 – 15,000 per lot |
| Mainboard IPO (HNI/NII) | 2 lakh+ | Multiple lots |
| SME IPO (Retail) | ~1 lakh | 1,00,000 – 2,50,000 per lot |
How to Increase IPO Allotment Chances
- Apply on Day 1 or Day 2 – Not the last hour of Day 3. Last-day applications often fail due to system overload.
- Apply with cut-off price – Do not enter custom price; tick Cut-off checkbox.
- Use multiple family PANs – Spouse, parents, adult children can each apply separately. ONE application per PAN per IPO is the rule.
- Apply ONE lot only (retail) – In oversubscribed IPOs, allotment is lottery-based. Multiple lots from same PAN do not boost retail odds.
- Choose strong IPOs – Read IPO reviews, check GMP trend, see subscription status.
- Keep sufficient balance – Bank balance must be greater than or equal to bid amount for ASBA. 500 buffer is wise.
Documents Needed Before You Apply
- Active Demat Account (NSDL or CDSL)
- Active Trading Account (with broker like Zerodha, Groww, etc.)
- Active UPI ID (for UPI method) OR active net banking (for ASBA)
- Sufficient bank balance for the bid amount
- PAN card linked to demat
Common Application Errors and Fixes
| Error | Cause | Fix |
|---|---|---|
| UPI mandate not received | UPI app delay / wrong UPI ID | Wait 10 mins, check Spam, retry with different UPI |
| Insufficient funds | Balance less than bid amount | Add 500 buffer above bid |
| Application rejected | Duplicate PAN, wrong demat, expired mandate | Check PAN-demat link, re-apply if mandate expired |
| UPI mandate Pending stuck | Bank/UPI sync delay | Wait 2 hours, re-approve via UPI app |
| PAN not authenticated | PAN not linked to demat | Update with broker, link PAN-Aadhaar |
Frequently Asked Questions
Can I apply for IPO without a Demat account?
No. A Demat account is mandatory. You need it to receive allotted shares. Open one with any SEBI-registered broker (Zerodha, Groww, Upstox, etc.) – takes about 10 minutes online with Aadhaar and PAN.
Can I cancel my IPO application after submission?
Yes, you can modify or withdraw your application up until 5 PM on the day of IPO closing. Use the same broker app where you applied. Funds will be unblocked.
What is Cut-off price in IPO bidding?
Cut-off price means you are agreeing to pay the final discovered issue price (highest of the price band). This is the safest option for retail – guarantees your application is not rejected for low pricing. Tick the Cut-off checkbox.
How long does the allotment process take?
For mainboard IPOs: T+1 (1 working day after IPO closes). For SME IPOs: T+2. Allotment status becomes available on the registrar website by 6 PM on allotment day.
Can NRIs apply for Indian IPOs?
Yes. NRIs can apply through NRO/NRE Demat accounts. Apply via ASBA only (UPI does not work for NRIs). Some IPOs reserve a portion specifically for NRI category.
What if my UPI mandate fails?
If mandate fails, your application is automatically rejected. You can re-apply through ASBA before IPO closes. To avoid: use the same UPI ID as your bank-linked one, not third-party.
Is there a fee to apply for an IPO?
No, applying is completely free. Brokers do not charge for IPO applications. There is no transaction fee, no demat fee for allotment. The only cost is the funds blocked in your account.
Related Tools
- Check Today IPO GMP before applying
- IPO Subscription Status Live
- IPO Allotment Status Check
- IPO Profit Calculator – estimate listing gains
- Best Brokers for IPO – compare brokers
Disclaimer: This guide is for educational purposes only. Investing in IPOs carries risk. Always read the prospectus (DRHP/RHP) and consult a SEBI-registered financial advisor before investing.