The IPO UPI mandate, explained
When you apply for an IPO through a broker app with UPI, the application is not complete until you accept a mandate request in your UPI app. Missing it is one of the most common reasons an application never counts.
What the mandate does
The mandate is a request from the IPO's sponsor bank to block the bid amount in your bank account. Accepting it with your UPI PIN blocks the money; it is not debited. If you are allotted shares, only the amount for the allotted shares is debited, and the rest is unblocked. If you are not allotted, the whole amount is unblocked.
The block is what makes the application valid. Until you accept the mandate, the exchange has your bid but no money behind it.
Where to find it
The request usually arrives within minutes of placing the bid, as a notification from your UPI app. If you miss the notification, open the UPI app and look for a section named mandates, pending requests or autopay; the IPO mandate is listed there with the company name and amount.
Check the amount and the company before you approve. The UPI ID used must belong to the applicant: a bid placed with a family member's PAN needs that person's own UPI ID and bank account.
The deadline
Mandates must be accepted by 5 PM on the day the issue closes. A mandate accepted after the cut-off is not counted, and the bid is treated as not made. Bidding on the last afternoon leaves little time if the request is slow, so apply a day early when you can.
UPI can be used for IPO bids up to ₹5 lakh. Larger HNI bids go through net banking (ASBA) instead.
If the mandate does not arrive
Check that the UPI ID entered in the broker app is correct and active, and that the UPI app is the one linked to that ID. Some apps take longer at busy times, especially on the last day.
If nothing arrives after an hour or so, you can cancel the bid in the broker app and place it again, which sends a fresh request. Applying through your bank's net banking (ASBA) avoids the mandate step altogether.
Related guides
- How to apply for an IPO in India
- Why IPO applications get rejected
- IPO money still blocked? What to do
- UPI or net banking (ASBA) for an IPO: which should you use?
More on applying for an ipo
- Can family members apply for the same IPO separately?
- What the cut-off price means in an IPO
- How to modify or cancel an IPO bid
- Applying for an IPO through net banking (ASBA)
- When to apply for an IPO
- Pre-applying for an IPO
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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.