Introduction

An IPO (Initial Public Offering) gives you the chance to invest in a company right from the start of its public journey. But for many new investors, the biggest question is: How to apply for IPO?
 With new online tools, apps, and easy UPI payments, IPO applications are simpler than ever. Still, you must follow each step carefully to avoid mistakes that could cost you allotment or delay your refund.

This complete guide explains how to open the right accounts, how ASBA and UPI work, how to apply on broker apps or net banking, and what happens after you submit your application.

What You Need to Apply for an IPO

Before you click ‘Apply’, you must have:
 ✅ A PAN Card
 ✅ A Demat Account (to hold your shares)
 ✅ A Trading Account (to buy/sell shares)
 ✅ A Linked Bank Account with net banking or UPI ID

A Demat Account stores your shares electronically — it’s like a digital locker for your investments. The Trading Account lets you buy or sell them on the stock exchange.

Where to Apply

There are two main ways to apply:
 1️⃣ Through your bank’s net banking portal (ASBA)
 2️⃣ Through your stockbroker’s trading app or website (UPI)

What is ASBA?

ASBA stands for Application Supported by Blocked Amount. It means your IPO application money is blocked in your bank account until shares are allotted. You earn interest on that blocked money since it’s technically still in your account.

How to Apply via Net Banking (ASBA)

 Step 1: Log in to your bank’s net banking.
 Step 2: Look for the ‘IPO’ or ‘ASBA’ section under investments.
 Step 3: Select the IPO you want to apply for.
 Step 4: Enter the number of lots and bid price within the price band.
 Step 5: Select your Demat Account details.
 Step 6: Confirm and submit your application.

 ✅ The money stays blocked until allotment.
 ✅ If you don’t get shares, the amount is released automatically.

How to Apply Using UPI

UPI (Unified Payments Interface) makes IPO applications quick and digital. Here’s how:

 1️⃣ Open your broker’s app or website.
 2️⃣ Go to the IPO section.
 3️⃣ Choose the IPO you want.
 4️⃣ Enter lot size and price.
 5️⃣ Enter your UPI ID.
 6️⃣ Submit the application.
 7️⃣ Open your UPI app (like PhonePe, Paytm, GPay) and approve the mandate.

 ✅ Once approved, the amount is blocked.
 ✅ Check your UPI app for mandate expiry — approve it before the deadline.

Important: Lot Size and Price

Every IPO sets a lot size — the minimum number of shares you must apply for. For example, if the lot size is 50 shares and the price band is ₹100–₹110, you can bid for 50, 100, 150 shares, and so on.

Always bid within the given price band. Many retail investors choose the cut-off price, which gives them the best chance of allotment.

Table: Example IPO Bidding