Prerequisites for Applying
Before you can apply for an IPO in India, you need:
- Demat Account - Opened with a SEBI-registered depository participant (e.g., Zerodha, Groww, Angel One)
- Bank Account - Linked to your Demat account and supporting UPI or ASBA
- PAN Card - Your Permanent Account Number linked to both accounts
- UPI ID - For UPI-based applications (most common for retail investors)
Method 1: Apply via UPI (Recommended)
UPI-based IPO application is the simplest and most popular method for retail investors.
- Log in to your broker app (Zerodha, Groww, Upstox, etc.) and go to the IPO section
- Select the IPO you want to apply for
- Enter the number of lots - For mainboard book-built IPOs, retail investors can select the cut-off price option
- Enter your UPI ID (e.g., yourname@upi)
- Submit the application
- Approve the mandate on your UPI app (Google Pay, PhonePe, BHIM, etc.) as soon as possible
- Your funds are blocked (not debited) until allotment. If you don't get shares, the block is released
Important: Approve the UPI mandate as soon as you receive it. The mandate must be approved before the IPO subscription closing time. Unapproved mandates are automatically rejected.
Method 2: Apply via ASBA (Through Bank)
ASBA (Application Supported by Blocked Amount) is the traditional method:
- Log in to your bank's net banking portal
- Navigate to the IPO/ASBA section
- Select the IPO and enter the number of lots and bid price
- Enter your Demat account details (DP ID and Client ID)
- Submit - your bank blocks the required amount
Method 3: Apply via Broker's Web Platform
Most brokers offer IPO application directly on their platform:
- Log in to your broker's website or app
- Go to IPO section (usually under "Invest" or "IPO")
- Select the IPO, choose number of lots
- Select payment method (UPI or ASBA)
- Complete verification and submit
How Many Lots Should You Apply For?
For retail investors (investment up to Rs 2 lakh):
- For mainboard book-built IPOs: Applying for 1 lot at cut-off price gives you the same allotment probability as applying for maximum lots, because in oversubscribed IPOs, allotment is done by lottery where each application (PAN) gets an equal chance regardless of the number of lots
- For SME / fixed-price IPOs: The cut-off price option is not available. You must bid at the fixed price. Allotment rules may also differ — check the prospectus
- Applying from multiple Demat accounts (family members) increases your overall chances
Key Tips
- For mainboard book-built IPOs, always apply at cut-off price to maximize allotment chances
- Apply on Day 1 or Day 2 to avoid last-minute technical issues
- Ensure sufficient funds in your bank account for the mandate to be blocked
- Check the IPO's GMP, subscription status, and our recommendation on the IPO detail page before applying
Disclaimer: This guide is for educational purposes only and does not constitute investment advice. IPO investment involves risk. Always read the prospectus (DRHP/RHP) carefully and consult a SEBI-registered financial advisor before making investment decisions.
Zerodha, Groww, Upstox, Angel One, Google Pay, PhonePe, and BHIM are trademarks of their respective owners. Mention of these platforms is for informational purposes only and does not imply endorsement.