How to apply for an IPO in India

Applying for an IPO takes a few minutes in your broker's app, but one step, approving the UPI request, is easy to miss and gets the application rejected.

What you need

A demat account and a trading account with a broker, a bank account linked to your UPI ID, and your PAN linked to both. Many banks also let you apply through net banking using ASBA, which blocks the money in your account instead of paying it out.

The steps

1. Open the IPO section of your broker's app and pick the IPO that is open for bidding.

2. Choose the category you qualify for. An individual applying for up to ₹2 lakh applies in the retail category.

3. Enter the number of lots and choose the cut-off price, which means you accept the final price. The amount blocked is worked out at the top of the price band.

4. Enter your UPI ID and submit the application.

5. Open your UPI app and approve the mandate request before bidding closes. An application whose request is not approved in time is rejected and no money is blocked.

After you apply

The money is blocked in your bank account, not debited. Bidding can usually be changed or cancelled until the IPO closes. After it closes, check your allotment. If you are allotted shares they appear in your demat account before listing, and any blocked money that is not used is released.

Mistakes to avoid

Applying twice with the same PAN in the same category, entering someone else's UPI ID without their knowledge, or leaving the UPI approval until the last minute on closing day, when apps are busy. Bids that do not meet the rules are rejected.

Keeping track

If several people in your family apply, noting who applied to what, and how much is blocked, gets difficult. IPO Khata keeps that in one place, but it never applies for you; you apply through your own broker or bank.

Information, not investment advice. GMP is an unofficial grey-market indicator; figures come from public sources (InvestorGain) and may be late or wrong. Not registered with or affiliated to SEBI, the exchanges, the registrars or InvestorGain.