How to Apply for an IPO Using UPI, Step by Step

Retail IPO applications in India run on ASBA — Application Supported by Blocked Amount. Your money is blocked in your own bank account rather than paid over, and it is only debited if you are allotted shares.

Before the issue opens

• An active demat account — allotted shares are credited there.
• A UPI ID linked to your own bank account. Third-party UPI IDs are rejected.
• The red herring prospectus. Read the risk factors, the use of proceeds and who is selling.

Placing the application

1. Open the IPO desk and choose the issue.
2. Enter the number of lots and your bid price. Retail applicants usually bid at the cut-off price so the application is valid at whatever price is discovered.
3. Enter your UPI ID and submit.
4. Approve the mandate request in your UPI app before the deadline. Until you approve it, the application is not complete.

After the issue closes

The registrar finalises the basis of allotment. In an oversubscribed retail category allotment is by lottery, so applying for more lots does not improve the odds beyond the first lot.

• Allotted: the amount is debited and shares are credited to your demat account before listing.
• Not allotted: the block is released automatically. No refund to chase.
• Partly allotted: only the allotted value is debited; the rest is released.

Mistakes that get applications rejected

• A PAN or demat detail that does not match the bank account holder.
• Two applications under the same PAN.
• Approving the UPI mandate after the cut-off time.

An IPO is an equity investment with no trading history. Listing gains are not assured and shares can list below the issue price.

This article is for investor education. It is not investment, tax or legal advice and is not a recommendation to buy or sell any security. Investments in the securities market are subject to market risks; read all related documents carefully before investing.