How to apply for an IPO in India
You need a demat account and either a bank ASBA facility or a UPI ID. Money is blocked, not debited, until allotment.
What you need first
A demat account with any depository participant, a PAN, and a bank account with either ASBA enabled or a UPI ID linked to it. Without a demat account there is nowhere for allotted shares to go, so this is the one prerequisite you cannot work around on the day.
ASBA and the UPI mandate
ASBA — Application Supported by Blocked Amount — means your application money stays in your own bank account and is simply blocked until allotment is decided. If you are not allotted shares, the block is released and you were never out of pocket.
Retail applications through a broker typically use the UPI route: you submit the application, then receive a mandate request in your UPI app which you must approve before the cut-off time. An unapproved mandate means an incomplete application, and this is one of the most common reasons people find they were never in the running.
Lot size and cut-off price
Applications are in lots, not individual shares. The RHP sets the lot size and you must apply in whole multiples of it.
Applying 'at cut-off' means you accept whatever final price is discovered within the band. For retail applicants this is usually the sensible choice: bidding below the eventual cut-off price means your application is not considered at all.
Common reasons applications fail
Not approving the UPI mandate in time. Mismatched details between PAN, bank account and demat account. Applying more than once under the same PAN. Insufficient balance when the block is attempted. Bidding below the final cut-off price.
Most of these are silent — you will not be told at the time, only discover it when allotment results show nothing.
Common questions
Do I need a demat account to apply for an IPO?
Yes. Allotted shares are credited in dematerialised form, so a demat account is required before you apply.
Is money debited when I apply for an IPO?
No. Under ASBA or a UPI mandate the amount is blocked in your own bank account and only debited if shares are allotted to you.
What does applying at cut-off price mean?
It means you accept the final issue price wherever it is set within the price band. Retail applicants generally apply at cut-off, because bidding below the eventual price means the application is not considered.
Keep reading
- What is GMP (Grey Market Premium)?
GMP is an unofficial price quoted in an informal market before a share lists. It is widely watched, entirely unregulated, and frequently wrong.
- What is a DRHP and an RHP?
The DRHP is a company's draft filing with SEBI; the RHP is the final version carrying the price band. Both are public and free.
- How IPO allotment works
When an IPO is oversubscribed, retail allotment becomes a lottery for one lot each. Applying for more does not improve your odds.