
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
Company | Price Band (₹) | Lot Size | Minimum Investment |
ABC Ltd | 200–220 | 50 shares | ₹11,000 |
XYZ Ltd | 100–110 | 135 shares | ₹14,850 |
PQR Ltd | 500–550 | 30 shares | ₹16,500 |
Mistakes to Avoid
❌ Using the wrong UPI ID or bank account
❌ Applying after the closing time on the last day
❌ Entering the wrong Demat Account number
❌ Not approving the UPI mandate
One small error can cancel your entire application!
What Happens After You Apply
✅ Money is blocked until allotment.
✅ You’ll get SMS/emails about your application status.
✅ After finalisation, you’ll either get shares or your money back.
✅ Shares are credited to your Demat before listing day.
Tips for First-Time IPO Investors
✅ Open your Demat Account with a trusted broker.
✅ Always read the IPO prospectus — check company financials.
✅ Track subscription levels to see how popular the IPO is.
✅ Use reliable apps for UPI payments.
Sample Table: Recent Popular IPOs
IPO Name | Lot Size | Oversubscription |
LIC | 15 shares | 2x |
Zomato | 195 shares | 38x |
Paytm | 6 shares | 1.8x |
Conclusion
Learning how to apply for IPO is a smart step towards becoming a confident stock market investor. Follow each step carefully, double-check your details, and track your application status. If you stay informed, you’ll avoid common mistakes and make the most of every IPO opportunity.
FAQs (10)
Q1: What is the minimum amount needed for IPO?
👉 It depends on lot size and price band.
Q2: Can I apply through multiple accounts?
👉 Yes, but only once per PAN number.
Q3: What happens if I miss UPI mandate approval?
👉 Your application becomes invalid.
Q4: How do I know if my application is successful?
👉 You’ll get SMS/email confirmation.
Q5: Can I cancel my IPO application?
👉 No, you can’t cancel after submission.
Q6: Do I get interest on blocked amount?
👉 Yes, through ASBA.
Q7: Is it safe to use UPI for IPO?
👉 Yes, if you use the right UPI ID.
Q8: Can minors apply for IPO?
👉 Yes, with a Demat Account in their name.
Q9: What if I make a mistake?
👉 Small errors can reject your application — always double-check!
Q10: Where can I find upcoming IPOs?
👉 Broker apps, financial news, and SEBI website.
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