Applying for an IPO is easier than you think once you have the right accounts set up. This complete guide explains how to apply for IPO online using UPI or ASBA, eligibility requirements, and tips to improve your allotment chances.
- Do You Need a Demat Account to Apply for IPO?
- Who Can Apply for IPO in India?
- How to Apply for IPO Online: 3 Easy Methods
- IPO Application Timeline
- IPO Allotment Process: How Shares Are Allotted
- Common Mistakes to Avoid When Applying for IPO
- IPO Application Tips to Improve Allotment Chances
- Frequently Asked Questions
If you’re new to investing, first read our What is IPO guide to understand the basics.
Do You Need a Demat Account to Apply for IPO?
Yes, a demat account is mandatory for every IPO application. Shares are allotted electronically to your demat account, not as physical certificates.
You also need:
- A linked trading account (with a broker like Zerodha, Groww, Upstox).
- A bank account (for blocking funds via ASBA or UPI).
- PAN card (mandatory for all investors).
Pro tip: Most brokers offer free or low‑cost demat account opening. Link your bank account early to avoid delays.
Who Can Apply for IPO in India?
Almost anyone can apply for IPOs, but there are quotas and rules:
- Retail investors (individuals like you): Up to â‚ą2 lakh investment qualifies for the retail category (35% quota).
- High Net Worth Individuals (HNI): Above â‚ą2 lakh goes to HNI quota (15%).
- Qualified Institutional Buyers (QIB): Banks, mutual funds (50% quota).
NRIs and Hindu Undivided Families (HUFs) can also apply, but check IPO‑specific restrictions.
How to Apply for IPO Online: 3 Easy Methods
Most IPOs (99%) are now applied for online. Here’s how:
Method 1: Through Broker’s App/Website (UPI – Recommended for Beginners)
This is the fastest way using apps like Zerodha Kite, Groww, or Angel One.
Step-by-step process:
- Log in to your broker app/website.
- Go to “IPO” or “Apply IPO” section (usually under “Console” or “IPO”).
- Select the live IPO from the list.
- Enter details: Lot size, bid price (use “cut‑off” for max chances), UPI ID.
- Confirm and submit – you’ll get a UPI mandate on your phone.
- Approve the UPI mandate before IPO close time (funds get blocked).
Example: For a ₹150 IPO with 100 shares/lot, apply for 1 lot at cut‑off (₹15,000 blocked).
Method 2: Through Bank’s Net Banking (ASBA)
Use your bank’s portal (HDFC, ICICI, SBI, etc.) if it’s a Self‑Certified Syndicate Bank (SCSB).
Steps:
- Log in to net banking.
- Navigate to “IPO/ASBA” section.
- Select the IPO, enter demat details, lot size, price.
- Submit – funds are blocked instantly in your bank account.
- Get acknowledgement with application number.
Method 3: Offline ASBA Form (Rarely Used)
Download the form from NSE/BSE website, fill it, and submit to your bank branch. Not recommended due to errors and delays.
IPO Application Timeline
| Stage | Typical Timeline | What Happens |
|---|---|---|
| IPO Opens | Day 1–3 (working days) | Bidding starts; apply anytime during this window. |
| IPO Closes | End of Day 3 | No more applications accepted. |
| Basis of Allotment (BoA) | Day 4–5 | Registrar finalizes who gets shares. |
| Share Credit & Refunds | Day 5–6 | Shares credited to demat; excess funds unblocked. |
| Listing Day | Day 6–7 | Shares start trading on NSE/BSE. |
Tip: Apply on Day 1 or 2 for better allotment odds in oversubscribed IPOs.
IPO Allotment Process: How Shares Are Allotted
- Oversubscription check: If 10x subscribed, not everyone gets full shares.
- Proportional allotment: Retail gets equal chance per application (1 lot minimum). Multiple applications (from different family demats) improve odds.
- Check status: Use registrar’s website (KFintech), NSE/BSE, or broker app with PAN/demat number.
- What if not allotted? Funds unblocked automatically in 1–2 days
Common Mistakes to Avoid When Applying for IPO
- Wrong UPI ID: Use your primary UPI linked to the bank with sufficient funds.
- Applying at last minute: UPI mandate needs approval before close.
- Insufficient balance: Keep 1.1x the bid amount (for safety).
- Single application: Use family members’ demats (different PANs) for multiple lots.
- Ignoring lot size: Always apply in multiples of minimum lot (e.g., 100 shares).
IPO Application Tips to Improve Allotment Chances
- Apply at cut‑off price (highest in band) for retail category.
- Use multiple demat accounts (spouse, parents – max 4–5).
- Target less hyped IPOs (under 10x subscription).
- Check IPO details on NSE India before applying.
- Broker choice matters: Zerodha, Groww have high success rates due to tech.
Frequently Asked Questions
How much minimum to apply for IPO?
Minimum 1 lot (e.g., â‚ą15,000 for 150 shares at â‚ą100). Retail cap: â‚ą2 lakh per PAN.
When are IPO shares credited to demat?
Usually T+4 to T+5 days after close (before listing).
Do brokers charge for IPO application?
Mostly free; check your broker’s policy.
Can NRIs apply for IPO?
Yes, on repatriation/non‑repatriation basis via PIS account.
