AI Overview
How to apply for an IPO in India (2026): You need a demat account, a PAN card, and a bank account with UPI or net banking enabled. Apply through your broker’s app (Zerodha, Upstox, Angel One) using your UPI ID the amount is blocked via ASBA, not debited, until allotment. Approve the UPI mandate before 5 PM on the IPO closing day. One application per PAN per IPO.
Key facts:
| Item | Detail |
| Methods | UPI (via broker app) or ASBA (via bank net banking) |
| UPI limit | ₹5 lakh per application |
| Application window | Typically 3 days (10 AM to 5 PM) |
| Mandate approval deadline | 5 PM on closing day |
| Applications per PAN | 1 per IPO |
| Money deducted? | Only if allotted otherwise unblocked |
Introduction: Applying for an IPO Is Simpler Than You Think
Every few days, a new IPO opens in India and thousands of first-time investors wonder how to actually apply. The process looks complicated from the outside: ASBA, UPI mandates, lot sizes, cut-off price. But once you understand it, applying for an IPO takes under five minutes from your phone.
This guide walks you through every step what you need before you start, how to apply using UPI through Zerodha or Upstox, how to apply through bank net banking using ASBA, and the most common mistakes that get applications rejected.
What You Need Before Applying
Before you can apply for any IPO in India, three things must be in place:
1. A Demat Account Shares allotted through an IPO are credited digitally to your demat account. Without one, you cannot receive shares even if you are allotted. Popular options include Zerodha, Upstox, and Angel One see our Best Demat Account guide for a full comparison.
2. A Bank Account Linked to UPI or Net Banking The IPO application amount is blocked (not debited) in your bank account via the ASBA mechanism. You need either a UPI ID linked to your bank account, or net banking access for the ASBA route. The bank account and demat account must be registered under the same PAN third-party applications were banned by SEBI in May 2022.
3. Your PAN Card PAN is mandatory for all IPO applications. The PAN on your demat account, bank account, and application form must all match. A mismatch triggers automatic rejection.
Two Methods to Apply for an IPO in India
Method 1: UPI Method (Recommended for Most Retail Investors)
The UPI method is the fastest and most popular route for retail investors applying up to ₹5 lakh. You apply through your broker’s app and approve a UPI mandate to block the application amount.
Step-by-Step: Applying via Zerodha (Kite / Console)
Step 1: Log in to Zerodha Console at console.zerodha.com or open the Kite app.
Step 2: Go to Portfolio and click on IPO. A list of currently open IPOs appears.
Step 3: Select the IPO you want to apply for. Review the price band, lot size, open and close dates, and minimum investment.
Step 4: Enter your bid details:
- Number of lots (minimum: 1 lot)
- Price: Always select Cut-off Price for retail applications this ensures your bid is valid at whatever final price the company sets within the band
- Enter your UPI ID (example: yourname@okaxis or yourname@ybl)
Step 5: Submit the application. You will receive a UPI mandate notification on your phone in Google Pay, PhonePe, BHIM, or whichever UPI app you use.
Step 6: Open your UPI app, find the mandate request, verify the IPO name and amount, and approve it using your UPI PIN.
That is it. The amount is now blocked (not debited) in your bank account. If you receive allotment, the money is debited and shares are credited to your demat. If you are not allotted, the block is released typically within 24 hours of the allotment date.
Applying via Upstox: The process is identical. Open the Upstox app, go to the IPO section, select the open IPO, enter lot quantity and UPI ID, submit, and approve the mandate in your UPI app.
Applying via Angel One: Same process. Navigate to IPO under the Invest tab, select the IPO, fill in bid details, enter your UPI ID, and approve the mandate.
Critical deadline: The UPI mandate must be approved before 5 PM on the IPO closing day. If the IPO closes on a Friday and you submit your application at 4:45 PM, you have only 15 minutes to find and approve the mandate on your UPI app. Apply early ideally on day 1 or day 2 of the subscription window.
Method 2: ASBA via Bank Net Banking
ASBA stands for Application Supported by Blocked Amount. In this method, you apply directly through your bank’s net banking portal, without going through a broker app. This is the preferred route for applications above ₹5 lakh (HNI category), and for investors who prefer dealing directly with their bank.
Step 1: Log in to your bank’s net banking portal. Most major banks SBI, HDFC, ICICI, Axis, Kotak have a dedicated IPO or ASBA section under Investments or Services.
Step 2: Locate the IPO / ASBA application section.
Step 3: Select the IPO from the list of open issues.
Step 4: Enter your demat account details:
- 16-digit Beneficiary Owner ID (BO ID) from your demat account
- Depository (CDSL or NSDL, depending on your broker Zerodha uses CDSL)
- DP Name (e.g., Zerodha Broking Limited)
Step 5: Enter bid details number of lots, price (cut-off price for retail), and confirm.
Step 6: The bank blocks the amount directly from your account. No separate mandate approval needed.
The ASBA net banking route does not require UPI mandate approval the block happens automatically at the moment of application submission.
Understanding ASBA: Why Your Money Is Not Debited Immediately
ASBA is the underlying mechanism for all IPO applications in India, whether you apply via UPI or net banking. Here is what it means in practice:
When you apply, your bank does not send your money anywhere. Instead, it places a lien on the amount the money stays in your account and continues earning interest (if it is a savings account), but you cannot spend it until the lien is lifted.
After allotment results are announced:
- If allotted: The blocked amount is debited and shares are credited to your demat account
- If not allotted: The lien is released and funds are fully available again typically within 24 hours of allotment date
This is significantly better than the old system where money was actually transferred and then refunded a process that could take weeks.
Understanding Cut-Off Price vs Specific Price
When you enter bid details, you will see an option to bid at a specific price within the price band, or at the cut-off price.
- Cut-off price means you agree to pay whatever price the company finally sets within the stated band. For example, if the price band is ₹100 to ₹120, selecting cut-off price means you agree to pay ₹120 (the maximum) but if the company sets the final price at ₹115, you pay ₹115 and the remaining ₹5 per share is unblocked.
- Always select cut-off price for retail applications. Bidding at a specific price below the final issue price will result in your application being rejected. Cut-off price bidding is mandatory for retail investors it is not allowed for HNI applications above ₹2 lakh.
Understanding Lot Size and Minimum Investment
Every IPO has a minimum lot size the minimum number of shares you must apply for. You cannot apply for a fraction of a lot. If you want more shares, you apply for 2 lots, 3 lots, and so on.
Example:
- IPO price band: ₹200 to ₹220
- Lot size: 68 shares
- Minimum investment: 68 × ₹220 = ₹14,960
You apply for 1 lot (₹14,960) or 2 lots (₹29,920) and so on. All applications must be in whole-lot multiples.
Our IPO Lot Size guide explains this in full detail with calculation examples.
Common Mistakes That Get IPO Applications Rejected
Using a third-party UPI ID: The UPI ID’s linked bank account must belong to the same person as the demat account. Using your spouse’s or parent’s UPI ID results in automatic rejection.
Not approving the UPI mandate on time: Unapproved mandates mean your application is not processed. Set a phone reminder the moment you submit.
Applying from the same PAN twice: One application per PAN per IPO across all platforms. Applying through both Zerodha and your bank for the same IPO will result in both applications being cancelled.
Bidding in non-multiples of lot size: Entering 50 shares when the lot size is 68 will result in an invalid bid.
Selecting a specific price below the final issue price: Always use cut-off price for retail applications.
Applying on the last day, last hour: UPI apps sometimes experience technical delays. If your mandate expires unapproved, your application fails. Apply on day 1 or day 2 whenever possible.
How to Check IPO Application Status
After applying, you can track your application status:
- Via broker app: Zerodha Console → Portfolio → IPO shows bid status, amount blocked, and mandate approval status
- Via exchange: BSE and NSE websites list application status using your PAN or application number
After allotment, check results at:
- Registrar website (KFin Technologies or Link Intime, depending on the IPO)
- BSE: bseindia.com
- Our IPO Allotment Status page which aggregates links for every active IPO
Frequently Asked Questions
Can I apply for an IPO without a demat account?
No. A demat account is mandatory. Shares cannot be allotted without one.
What is the UPI limit for IPO applications in 2026?
₹5 lakh per application via UPI. Applications above ₹5 lakh must use the ASBA net banking route.
Can I apply for the same IPO from two brokers?
No. One application per PAN per IPO. Duplicate applications are automatically rejected both of them.
Is there a charge for applying for an IPO?
No. Applying through UPI or ASBA is free. Brokers do not charge for IPO applications.
What happens if I forget to approve the UPI mandate?
Your application will not be processed and you will not be considered for allotment. There is no way to retroactively approve a lapsed mandate.
Can I modify or cancel my IPO application?
Yes, you can revise or cancel bids anytime before the IPO window closes typically by 5 PM on the closing day.
When are IPO allotment results announced?
Typically 6 business days after the IPO closes. Check our IPO Allotment pages for every active IPO’s registrar links.
Summary: Applying for an IPO in 5 Steps
- Ensure you have an active demat account, PAN, and bank account with UPI enabled
- Open your broker’s app (Zerodha, Upstox, or Angel One)
- Go to the IPO section, select the open IPO, enter lot quantity and UPI ID, select cut-off price
- Submit the application and immediately approve the UPI mandate in your UPI app
- Wait for allotment if successful, shares are credited to your demat account on allotment date
