Applying for an IPO in India takes about five minutes once your accounts are ready, but a surprising number of applications get rejected for avoidable reasons: a mistyped UPI ID, a mandate that was never approved, or two bids on the same PAN. This guide walks through the process in the order you'll actually do it.
If you don't have a demat account yet, see our beginner's roadmap for the order to set things up in.
Both systems are built on the same idea, called ASBA (Application Supported by Blocked Amount): your money stays in your bank account, earns your usual interest, and is only blocked until allotment is finalised. If you get shares, the exact amount is debited. If you don't, the block is released and there is no refund process to chase.
| UPI route | Net banking ASBA | |
|---|---|---|
| Where you apply | Your broker's app or website | Your bank's net banking (IPO/ASBA section) |
| How money is blocked | You approve a UPI mandate in your UPI app | Bank blocks the amount directly |
| Limit | Up to \u20b95 lakh per transaction (SEBI investor guidance) | Used for larger applications, above the UPI limit |
| Best for | Most retail investors | Investors who prefer applying through their bank, or bidding above \u20b95 lakh |
Retail Individual Investors (RIIs) can bid up to a total value of \u20b92 lakh per application. Go above \u20b92 lakh and you fall into the non-institutional (HNI) category, which has different allotment rules.
The lot size is the smallest number of shares you can bid for, set by the company before the issue. The price band is the range you can bid within, for example \u20b995 to \u20b9100 a share.
Cut-off price is a retail-only option. Instead of naming a price, you agree to pay whatever final price is decided, which is capped at the top of the band. Because the final price can't exceed the upper band, most retail investors choose cut-off so their bid can't be rejected for being below the final price.
You can check allotment status on the registrar's website for that IPO or on the BSE/NSE allotment pages, using your PAN or application number. Your broker app usually shows it too.
Not on that basis alone. GMP (grey market premium) is an unofficial number from an unregulated market and can change quickly. Read our explainer, What Is GMP in an IPO?, and check the company's offer document, valuation and subscription trend before you bid.
Educational information only, not investment advice or a recommendation to apply for any IPO. Rules, limits and timelines can change; confirm current details with SEBI, the stock exchanges and your broker.
IPO Watch lists this week's mainboard and SME IPOs with dates, price band, lot size and a simple GMP rating, refreshed daily. Add your email for the free weekly IPO digest.
OPEN IPO WATCH →For a mainboard IPO, the minimum is one lot, which usually works out to roughly ₹10,000–₹15,000 at the upper end of the price band. SME IPOs generally need a higher minimum (commonly two lots, around ₹2 lakh or more). The exact lot size is printed in the IPO's price band notice.
Both block your money in your own bank account instead of paying it upfront. With UPI you bid through your broker's app and approve a mandate in your UPI app (limit ₹5 lakh per transaction). With ASBA you apply through your bank's net banking IPO section and the bank blocks the amount directly.
No. The amount is only blocked. It is debited if shares are allotted to you, and the block is released if you get no allotment or only partial allotment.
In an oversubscribed retail category, allotment is by lottery among valid applications, and applying for more lots does not generally improve your odds of being picked. Many retail investors therefore apply for a single lot.
No. Only one application per PAN is allowed for a category, and multiple applications on the same PAN can be rejected. Applying in family members' names is fine as long as each person has their own PAN, demat account and bank account.
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