What You Need Before Applying for an IPO
Before you can apply for any IPO in India, you need four things ready. Missing even one of these will result in your application being rejected:
1. Demat Account. A demat (dematerialised) account is mandatory for holding shares electronically. You can open one with any SEBI-registered broker such as Zerodha, Upstox, or Angel One. The account opening process is fully online and typically takes 1-2 business days.
2. UPI ID. For retail investors applying for IPOs worth up to Rs 5 lakh, the payment happens through UPI mandate. You need an active UPI ID linked to your bank account. Popular UPI apps include Google Pay, PhonePe, Paytm, and BHIM. Make sure your UPI app is linked to the same bank account that your demat is associated with.
3. PAN Card. Your Permanent Account Number is used for KYC verification and allotment tracking. The PAN linked to your demat account must match the PAN you use during the IPO application. If there is a mismatch, your application will be rejected at the registrar level.
4. Bank Account with Sufficient Balance. Your bank account must have enough balance to cover the application amount. For a retail application, this is the lot size multiplied by the upper price band. The amount is not debited immediately — it is blocked via ASBA (Application Supported by Blocked Amount) until allotment is finalised. If you are not allotted, the full amount is unblocked automatically.
Once you have these four items ready, you can apply for any open IPO through your broker's app or website, or through your bank's net banking portal.
How to Apply via Zerodha Kite — Step by Step
Zerodha is India's largest discount broker with over 1.6 crore active users. Here is how to apply for an IPO on Zerodha's Kite platform:
Step 1 — Log in to Zerodha Kite. Open the Kite app on your phone or visit kite.zerodha.com. Enter your client ID and password, then complete two-factor authentication.
Step 2 — Go to the IPO section. On the app, tap the menu icon and select "IPO" from the list. On the web platform, click on "IPO" in the left sidebar under the Portfolio section.
Step 3 — Select the IPO. You will see a list of currently open IPOs. Tap on the one you want to apply for. Review the company details, price band, lot size, and dates.
Step 4 — Click "Bid" or "Apply". This opens the application form. You will see fields for the number of lots, bid price, and UPI ID.
Step 5 — Enter the number of lots. For retail investors, you can apply for 1 to a maximum of 13-15 lots depending on the IPO (the total value cannot exceed Rs 2,00,000 for the retail category). Start with 1 lot if you are a beginner.
Step 6 — Set the bid price. Always bid at the cut-off price unless you have a specific reason not to. Bidding at cut-off means you are willing to accept whatever final price is determined by the book-building process. This maximises your chances of allotment.
Step 7 — Enter your UPI ID. Type in your UPI ID (e.g. yourname@upi). Double check this — a wrong UPI ID means your application cannot be processed.
Step 8 — Submit and approve the UPI mandate. After submitting, you will receive a mandate request on your UPI app within a few minutes. Open your UPI app, find the mandate request, and approve it. The application amount will be blocked (not debited) in your bank account. If you do not approve the mandate within the deadline (usually the IPO close date plus 1 day), your application is considered cancelled.
If you do not have a Zerodha account yet, you can open a free Zerodha demat account here.
How to Apply via Upstox — Step by Step
Upstox is another popular discount broker with a clean mobile experience. Here is how to apply:
Step 1 — Log in to Upstox. Open the Upstox app and log in with your credentials. Complete biometric or PIN authentication.
Step 2 — Navigate to IPOs. On the home screen, tap "IPO" in the Explore section, or go to Menu then IPO.
Step 3 — Select the IPO. Choose the IPO you want to apply for from the list of open issues. Review the price band, lot size, subscription status, and GMP if available.
Step 4 — Tap "Apply". This opens the bid form with pre-filled details from your account.
Step 5 — Choose lots and price. Select the number of lots. Choose "Cut-off" as your price option for the best allotment chances.
Step 6 — Confirm UPI ID. Your registered UPI ID should appear automatically. Verify it is correct and linked to an active bank account.
Step 7 — Submit and approve mandate. Submit the application, then approve the UPI mandate request that arrives on your UPI app. Make sure you do this promptly.
If you need an Upstox account, you can open a free Upstox demat account here.
How to Apply via Angel One — Step by Step
Angel One (formerly Angel Broking) is a full-service broker with integrated research. Here is the process:
Step 1 — Log in to Angel One app. Open the Angel One app and log in. You can also use the web platform at angelone.in.
Step 2 — Go to IPO section. Tap on "IPO" from the bottom navigation bar or the main menu. The app shows all currently open IPOs.
Step 3 — Select the IPO. Tap on the IPO name to see full details including company overview, financials snapshot, and subscription data.
Step 4 — Tap "Apply Now". This opens the application form. Your demat details are pre-filled.
Step 5 — Set lots and price. Choose the number of lots and select "Cut-off" as the bid price. The minimum and maximum application amounts are shown clearly.
Step 6 — Verify UPI ID. Enter or confirm your UPI ID. Angel One validates the UPI ID format before submission.
Step 7 — Submit and approve. Submit the application. Open your UPI app immediately and approve the mandate. Angel One sends a confirmation notification once the mandate is approved.
How to Apply via Net Banking ASBA — Step by Step
If you prefer to apply through your bank instead of a broker, you can use the ASBA (Application Supported by Blocked Amount) route through net banking. This is available at most major banks including SBI, HDFC, ICICI, Axis, and Kotak.
Step 1 — Log in to net banking. Access your bank's net banking portal using your credentials.
Step 2 — Navigate to IPO section. Look for "IPO" or "Investments" or "ASBA" in the services menu. The exact location varies by bank. In SBI, it is under e-Services then Demat and ASBA Services. In HDFC, it is under IPO/FPO under the Third Party Transfers section.
Step 3 — Select the IPO. Choose the open IPO from the list. The bank portal shows the price band, lot size, and your eligible categories.
Step 4 — Enter application details. Fill in the number of shares or lots, bid price (choose cut-off), your demat account number (DP ID and client ID), and PAN.
Step 5 — Review and confirm. Double check all details. The application amount will be blocked in your bank account, not debited.
Step 6 — Download confirmation. Save or screenshot the confirmation reference number for your records. You will need this to check allotment status later.
The net banking ASBA route is slightly more cumbersome than the UPI route through brokers, but some investors prefer it because the money stays blocked in their own bank account and they do not need a separate broker relationship.
UPI Mandate Process Explained
After you submit an IPO application through any broker using UPI, here is what happens:
Within 5-30 minutes: You receive a mandate request notification on your UPI app (Google Pay, PhonePe, BHIM, or Paytm). This is not a payment — it is an authorisation to block funds.
You approve the mandate: When you approve, the application amount is blocked in your bank account. The money is still in your account and continues to earn interest (if applicable), but you cannot spend it. This is the ASBA mechanism at work.
Mandate deadline: You must approve the mandate before the deadline, which is typically the IPO close date plus one day. If you miss this deadline, your application is automatically cancelled.
After allotment: If you receive allotment, only the required amount (allotted shares multiplied by issue price) is debited from your account. The remaining blocked amount is released. If you do not receive allotment, the entire blocked amount is released and you are back to full balance.
Common UPI issues to watch for:
- Make sure your UPI app is updated to the latest version
- Ensure your UPI ID is correctly linked to your primary bank account
- Do not change your UPI PIN between application and allotment
- If you applied with multiple lots, do not panic if you see a large blocked amount — it will be released if you are not allotted
Common Mistakes That Get IPO Applications Rejected
Here are the most frequent reasons IPO applications are rejected by the registrar, and how to avoid them:
1. PAN mismatch. The PAN in your demat account, bank account, and IPO application must all match. If your bank has a different PAN than your demat, the application will be rejected.
2. Multiple applications from the same PAN. SEBI rules allow only one application per PAN per IPO in the retail category. If you apply through both Zerodha and your net banking, one or both applications will be rejected.
3. Insufficient bank balance. If your bank balance drops below the blocked amount before allotment, the mandate fails and your application is rejected. Keep sufficient balance throughout the allotment period.
4. UPI mandate not approved. If you submit the application but forget to approve the UPI mandate, or approve it after the deadline, your application is void.
5. Wrong demat details. Entering incorrect DP ID or client ID means the shares cannot be credited even if allotment happens.
6. Bidding below cut-off in a book-built IPO. If you bid at a price below the final issue price, your application is rejected. Always bid at cut-off to avoid this.
7. Application amount exceeding category limits. Retail investors cannot apply for more than Rs 2,00,000. If your total application value exceeds this, the entire application is rejected, not just the excess.
What Happens After the IPO Closes
Here is the timeline from IPO close to shares appearing in your demat:
Day 1-2 (after close): Basis of allotment finalised. The registrar (KFintech or MUFG Intime) processes all applications, validates them, and determines allotment. For oversubscribed IPOs, retail allotment is done by lottery.
Day 3: Allotment announced. You can check your IPO allotment status on the registrar's portal using your PAN, application number, or DP ID. Our allotment page links directly to all five registrar portals.
Day 4: Shares credited and refunds initiated. If allotted, shares appear in your demat account. If not allotted or partially allotted, the blocked amount (or excess) is released back to your bank account.
Day 5-6: Listing day. The stock begins trading on NSE and BSE. Listing typically happens at 10 AM. The opening price may differ significantly from the issue price depending on market demand.
This entire process now takes about 6 working days from IPO close to listing, down from the 10-12 days it used to take before SEBI's T+3 listing reforms.
You can view all currently open IPOs on our IPO listing page, which shows dates, price bands, lot sizes, and real-time subscription status for every active issue.
Frequently Asked Questions
Can I apply for the same IPO from two different brokers?
No. SEBI allows only one application per PAN per category (Retail, sNII, bNII). If you submit multiple applications using the same PAN, all applications will be rejected — not just the duplicates. Apply from only one platform.
What is the minimum amount required to apply for an IPO?
For mainboard IPOs, the minimum application is one lot, which typically costs between Rs 14,000 and Rs 15,000. For SME IPOs, the minimum lot value is Rs 1,00,000 or more as per SEBI regulations. The exact amount depends on the issue price and lot size, which varies for every IPO.
Can I cancel my IPO application after submitting?
Yes, you can modify or cancel your bid during the subscription period. After the subscription closes, cancellation is not possible. To modify on Zerodha or Upstox, go to the IPO section, find your active bid, and select "Modify" or "Cancel". You can modify up to 3 times.
What happens if my UPI mandate request never arrives?
If you do not receive the mandate request within 30 minutes, try these steps: (1) Check if your UPI app is updated. (2) Ensure the UPI ID you entered is correct. (3) Check if your bank supports IPO mandates. (4) Contact your broker's support. You can also try applying again if the subscription period is still open — the first incomplete application will automatically lapse.
Do I need a demat account to apply for an IPO?
Yes, a demat account is mandatory for all IPO applications in India. You cannot apply without one. The good news is that opening a demat account is free with most discount brokers and takes only 1-2 days. We recommend Zerodha, Upstox, or Angel One for IPO investing.
Is there a fee charged for applying to an IPO?
No broker charges any fee for submitting an IPO application. The only cost is the application amount itself, which is blocked (not debited) until allotment. If you are not allotted, you pay nothing. There are no brokerage charges, application fees, or processing fees for IPO applications with any of the major brokers.
Disclaimer: This article is published by ipomarket.in for educational and informational purposes only. It does not constitute investment advice, a recommendation to buy or sell any security, or an offer to invest. IPO investments are subject to market risks. Grey Market Premium (GMP) data is sourced from unofficial market participants and is not endorsed by SEBI, NSE, or BSE. Past performance is not indicative of future results. Please read all scheme-related documents carefully and consult a SEBI-registered financial advisor before investing. ipomarket.in is not a SEBI-registered investment advisor or research analyst.