What Do You Need Before Applying for an IPO?
Before you apply for any IPO, make sure you have the following in place. You need a PAN card linked to your demat account, a demat account opened with a registered depository participant, a trading account with a SEBI-registered broker, and a bank account linked to your demat account with sufficient balance to cover the application amount.
Two Ways to Apply for an IPO Online
Method 1 — Via UPI: This is the most popular method for retail investors. You apply through your broker's app or platform, enter your UPI ID, and approve the payment mandate on your UPI app. The amount gets blocked in your bank account automatically.
Method 2 — Via Net Banking (ASBA): You log into your bank's net banking portal directly and apply through the IPO section. The bank blocks the application amount from your account. This method is available through most major banks in India.
Step-by-Step: How to Apply for an IPO via UPI
Step 1: Log into your broker's trading app or platform and navigate to the IPO section.
Step 2: Select the IPO you want to apply for and check the price band, lot size, and minimum application amount.
Step 3: Enter the number of lots you want to apply for and enter your bid price. For retail investors, always bid at the cap price.
Step 4: Enter your UPI ID linked to your bank account and submit the application.
Step 5: Open your UPI app — Google Pay, PhonePe, Paytm, or your bank's UPI app — and approve the mandate request that arrives. This must be done within the stipulated time or your application will be invalid.
Step 6: Once the mandate is approved, your application is complete and the amount is blocked in your bank account.
Step-by-Step: How to Apply for an IPO via Net Banking
Step 1: Log into your bank's net banking portal using your credentials.
Step 2: Look for the IPO or ASBA section. Most major banks like SBI, HDFC, ICICI, Axis, and Kotak have a dedicated IPO application section.
Step 3: Select the IPO you want to apply for from the available list.
Step 4: Enter your demat account number, PAN number, number of lots, and bid price.
Step 5: Review the application details carefully and confirm. The bank will block the required amount from your account immediately.
Important Things to Remember While Applying
Always bid at the cap price to maximize your allotment eligibility. Bidding below the cut-off price risks application rejection.
Apply only once per PAN. Multiple applications using the same PAN are automatically rejected by the system.
Ensure sufficient balance in your bank account throughout the IPO subscription period. If your balance drops below the blocked amount, your application may be cancelled.
Approve UPI mandate on time. For UPI applications, you typically have until 5:00 PM on the day of application to approve the mandate. Missing this window invalidates your application.
How to Check if Your IPO Application is Successful
After submitting your application, you can verify it through your broker's platform where the application status will be updated. You can also check directly with the exchange or registrar using your PAN number once the subscription period ends.
Conclusion
Applying for an IPO online is a straightforward process once you know the steps. Whether you use UPI or net banking, the key is to apply correctly, bid at the right price, and ensure your bank account has sufficient balance. Track all open and upcoming IPOs with complete details on IPOView so you never miss a valuable opportunity.