How to Apply for an IPO in India (UPI & ASBA)
Applying for an IPO takes five minutes once you know the flow. Here is exactly how it works — and the small mistakes that quietly get applications rejected.
What you need before you start
- A demat + trading account with a broker (Zerodha, Groww, Upstox, etc.).
- A UPI ID linked to the bank account you’ll pay from (for the UPI route), or net banking with an ASBA-enabled bank (for the bank route).
- Enough balance to be blocked for the full application amount.
The two ways to apply
Every Indian IPO application uses ASBA (Application Supported by Blocked Amount): your money is blocked in your bank account rather than debited, and only leaves your account if shares are allotted. There are two ways to submit an ASBA application:
- UPI, through your broker’s app — the most common route for retail investors.
- ASBA, through your bank’s net banking — no UPI mandate involved; the bank blocks the funds directly.
Route 1: Apply via UPI (broker app)
- Open the IPO section of your broker’s app and select the open IPO.
- Enter your bid: choose the number of lots and tick “cut-off price” (recommended for retail) so you accept whatever final price is set within the band.
- Enter your UPI ID and submit. The application amount = lots × lot size × upper band price.
- Open your UPI app — you’ll get a mandate request. Approve it before the cut-off time, or the application fails.
- Done. The amount is now blocked (not debited) until allotment.
Route 2: Apply via ASBA (net banking)
- Log in to your bank’s net banking and open the IPO / ASBA section.
- Select the IPO, enter your demat details (DP ID / Client ID), lots and price (cut-off).
- Submit — the bank blocks the amount directly. No UPI mandate step.
ASBA via net banking avoids UPI-mandate glitches and the ₹5 lakh UPI limit, which is why many larger (NII) applicants prefer it.
The cut-off price, explained
An IPO is offered in a price band (e.g. ₹95–₹100). Retail investors can tick “cut-off” to automatically bid the final price, whatever it turns out to be within the band. If you instead bid below the final price, your application is rejected. For almost all retail applicants, cut-off is the right choice.
Deadlines that matter
- IPOs are open for a fixed window (usually three business days).
- The UPI mandate must be approved before the day’s cut-off (often ~5 PM on the closing day, but apply earlier to be safe).
- Apply a day early where possible — last-hour UPI/bank congestion causes real failures.
Why applications get rejected
- Multiple applications under the same PAN.
- UPI mandate not approved in time.
- Insufficient balance to be blocked.
- Mismatched PAN / bank / demat details.
- Bidding below the cut-off / final price.
Frequently asked questions
Is my money debited when I apply?
No. Under ASBA it is only blocked, and is debited only if you are allotted shares. Until then it keeps earning interest in your account.
Can I apply for the same IPO from two accounts?
Not under the same PAN. But separate family members can each apply from their own PAN, demat and bank account — see how allotment works.
How many lots should a retail investor apply for?
In an oversubscribed retail category, one lot is usually the smartest play — extra lots do not improve your odds of getting an allotment. Full reasoning in our allotment guide.
How will I know if I got shares?
Check the registrar or exchange after the basis of allotment — see how to check IPO allotment status.