How to Apply for an IPO in India: ASBA and UPI Steps
How to apply for an IPO in India step by step: demat account, ASBA through net banking, UPI bids through a broker, lot size, cut-off price and mandate approval.
How to apply for an IPO in India, in short: you need three things, a demat account, a bank account that supports ASBA (or a UPI ID) and your PAN. You place a bid while the issue is open, either through your bank's net banking (ASBA) or through your broker's app using a UPI mandate. The bid amount stays blocked in your account, not debited, until shares are allotted.
This guide walks through both methods and explains the choices you make on the bid form. It explains the process only; it doesn't suggest whether to apply for any issue.
What you need before you apply
- PAN, linked to your demat account
- Demat account with a depository participant (a bank or broker), where allotted shares are credited
- Bank account with ASBA, or a UPI ID on a bank listed by SEBI for IPO mandates
- Enough balance to cover the bid. It is blocked, not debited, until allotment.
Individuals can use UPI for bids up to ₹5 lakh. SEBI publishes the list of banks and UPI apps that can be used for IPO mandates. Larger bids go through ASBA net banking or a broker's ASBA form.
Know the terms on the bid form
| Field | What it means |
|---|---|
| Price band | The range in which the final price will be fixed, e.g. ₹114–₹120 |
| Lot size | The minimum number of shares per bid; you bid in multiples of it |
| Cut-off price | Tick this to accept whatever final price is fixed; only retail, employee and shareholder bidders can |
| Category | Retail (up to ₹2 lakh), NII (above ₹2 lakh), employee or shareholder quota |
| Bid quantity | Number of shares, in multiples of the lot |
Each IPO page on Eyepio shows the price band, lot size and minimum investment once they are announced. A list of issues with their dates is on upcoming IPOs.
How to apply for an IPO through net banking (ASBA)
ASBA (Application Supported by Blocked Amount) is offered by most banks inside net banking.
- Log in to net banking and open the IPO / e-IPO / ASBA section.
- Link your demat account details (DP ID and client ID) if asked the first time.
- Choose the open issue and your category (usually Retail).
- Enter the bid quantity in multiples of the lot, and the price or tick cut-off.
- Confirm. The bank blocks the bid amount in your account.
- Note the application number. You'll use it to check allotment.
How to apply for an IPO through a broker with UPI
Most brokers offer an IPO section in their app or website.
- Open the IPO section and choose the open issue.
- Enter the quantity (in lots) and price, or select cut-off.
- Enter your UPI ID and submit. The exchange sends a mandate request to your UPI app.
- Open your UPI app and approve the mandate. The amount is blocked, not debited.
- Check that the broker shows the bid as mandate accepted.
After you apply
- Modify or cancel your bid any time before the issue closes, from the same bank or broker.
- One application per PAN per issue. Duplicate bids under the same PAN are rejected.
- Allotment on T+1, the working day after closing. Learn the rules in how IPO allotment works.
- Check your result with the steps in how to check IPO allotment status.
- Refund: if you get nothing, the blocked amount is released, usually by T+2.
- Listing on T+3: allotted shares appear in your demat account on T+2 and can be traded from listing day. All dates are on the IPO page's timeline and on the IPO calendar.
Common reasons bids are rejected
- UPI mandate not approved before the cut-off
- PAN mismatch between the application and the demat account
- Bid below the final issue price, when not bid at cut-off
- More than one application under the same PAN
- Insufficient balance when the amount is to be blocked
- Bid amount above the limit for the category or the UPI cap
Frequently asked questions
Can I apply for an IPO without a demat account?
No. Allotted shares are credited only in demat form, so a demat account linked to your PAN is required.
Is the money debited when I apply?
No. Under ASBA and UPI the amount is only blocked. It is debited for the shares you are allotted and released for the rest.
What is the maximum a retail investor can bid?
Retail individual investors can bid up to ₹2 lakh per issue. Bids above that are in the non-institutional (NII) category.
Can I apply for an IPO with UPI above ₹5 lakh?
No. UPI is available for bids up to ₹5 lakh. Higher bids go through ASBA net banking or a broker's ASBA form.
Can I cancel an IPO application?
Yes, before the issue closes, from the same bank or broker you applied through. Once bidding closes, bids can't be withdrawn.
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