How to Apply for an IPO Through UPI

UPI has made applying for IPOs in India incredibly simple. Gone are the days of filling out physical forms and writing cheques. Today, you can apply for any IPO directly from your broker’s app using your UPI ID, and the entire process takes less than five minutes. In this guide, we will walk you through the complete process of applying for an IPO through UPI, step by step.

What Is the ASBA-UPI Method?

ASBA stands for Application Supported by Blocked Amount. When you apply for an IPO through UPI, the application amount is not debited from your bank account. Instead, it is blocked (held) in your account until the allotment is decided.

• If you get allotment, only the required amount is debited.
• If you do not get allotment, the full amount is unblocked and available for use again.

This is much better than the old system where money was debited upfront and refunded later. With ASBA-UPI, your money stays in your bank account and continues earning interest until allotment.

Prerequisites

Before you can apply for an IPO through UPI, ensure you have:

• A Demat account with a SEBI-registered broker (Zerodha, Groww, Angel One, etc.).
• A UPI ID linked to your bank account. You can use Google Pay, PhonePe, Paytm, BHIM, or your bank’s own UPI app.
• Sufficient balance in your bank account to cover the IPO application amount.

Important note: Not all UPI apps work for IPO mandates. The most reliable ones are BHIM, Google Pay, Paytm, PhonePe, and bank UPI apps. Verify that your UPI app supports IPO mandate blocking.

Step-by-Step Process

Step 1: Find an Open IPO

Open your broker’s app and navigate to the IPO section. You will see a list of currently open IPOs with details like the price band, lot size, opening and closing dates, and company information.

Step 2: Select the IPO and Click “Apply”

Choose the IPO you want to apply for and tap “Apply” or “Bid Now.” This will open the application form.

Step 3: Enter Your Bid Details

Fill in the following information:

• Number of lots: Select how many lots you want to apply for. The minimum is 1 lot. As a retail investor, you can apply for up to Rs 2 lakh worth of shares.
• Bid price: Choose “Cut-off price” — this means you are willing to pay whatever price the company finalizes within the price band. This gives you the highest chance of allotment as a retail investor.
• UPI ID: Enter your UPI ID carefully (e.g., yourid@oksbi, yourid@okaxis, yourid@paytm). Double-check the spelling.

Step 4: Submit the Application

Review all the details and tap “Submit” or “Place Bid.” Your broker will send the application to the exchange.

Step 5: Approve the UPI Mandate

This is the most critical step. Within a few minutes of submitting your application, you will receive a mandate request on your UPI app.

1. Open your UPI app (Google Pay, PhonePe, BHIM, etc.).
2. Go to the pending mandates or notifications section.
3. You will see a mandate request from the IPO registrar for the blocked amount.
4. Tap on it and approve it by entering your UPI PIN.

Critical warning: If you do not approve the UPI mandate within the deadline (usually before the IPO close date), your application will be automatically rejected. This is the most common reason for failed IPO applications.

Step 6: Verify Your Application Status

After approving the mandate, go back to your broker’s app and check the IPO application status. It should show as “Application Successful” or “Bid Submitted.” You can also check by looking at your bank account — the application amount should show as “lien” or “blocked” (not debited).

Step 7: Wait for Allotment

The allotment date is typically 5-7 business days after the IPO closes. You can check your allotment status on:

• Your broker’s app (IPO section).
• The registrar’s website (Link Intime or KFintech) using your PAN or application number.
• The BSE IPO status page.

What Happens After Allotment?

• If allotted: The share amount is debited from your bank account, and shares are credited to your Demat account before listing day.
• If not allotted: The blocked amount is unblocked and fully available in your bank account.
• Partial allotment: If you applied for multiple lots but got fewer, only the proportional amount is debited.

Common Mistakes to Avoid

• Forgetting to approve the UPI mandate: This is the number one reason for rejected applications. Set a reminder to check your UPI app immediately after submitting.
• Using the wrong UPI ID: A typo in the UPI ID means the mandate will not reach you.
• Insufficient balance: Ensure your bank account has enough funds to cover the full application amount.
• Multiple applications from the same PAN: Only one application per PAN is allowed. Duplicate applications are rejected.
• Applying from a UPI app that does not support IPO mandates: Stick to BHIM, Google Pay, PhonePe, Paytm, or your bank’s UPI app.

The Bottom Line

Applying for an IPO through UPI is the fastest and most convenient method for retail investors in India. The entire process takes under 5 minutes, your money stays in your bank account until allotment, and everything is done digitally. Just remember to approve the UPI mandate promptly — that one step makes or breaks your application.