Two Ways to Apply for an IPO in India
In India, retail investors can apply for IPOs through two approved mechanisms:
- ASBA (Application Supported by Blocked Amount) — through your bank's net banking portal or physical branch
- UPI-based ASBA — through a registered stock broker app (Zerodha, Groww, Upstox, AngelOne, etc.) using your UPI ID
Both methods work on the same principle: your application amount is blocked (not debited) from your bank account until allotment. You continue earning interest on blocked funds.
Applying via UPI (Broker App) — Recommended for Retail
This is the fastest and most popular method:
- Open your broker app (e.g., Zerodha Kite, Groww, Upstox)
- Navigate to the IPO section — look for "Apply" next to the open IPO
- Enter the lot quantity (minimum 1 lot, typically 15–20 shares for mainboard)
- Select Cut-off Price (recommended) or specify a price within the band
- Enter your UPI ID linked to a savings bank account
- Click Submit — you will receive a UPI mandate request on your UPI app
- Approve the mandate in your UPI app (BHIM, Google Pay, PhonePe etc.) — funds are blocked but not debited
Important: UPI mandates must be approved within 30 minutes of raising, otherwise the application is rejected. Check your UPI app immediately after submitting.
Applying via ASBA Through Bank
- Log in to your bank's net banking portal
- Go to Investments → IPO (available in SBI, HDFC, ICICI, Axis, Kotak etc.)
- Select the IPO, enter DP ID and Client ID from your Demat account
- Enter application amount and PAN
- Submit — funds are blocked via ASBA
How Many Lots Can You Apply For?
Retail Individual Investors (RII) can apply for a maximum of ₹2 lakh worth of shares per PAN card. To maximize allotment probability, most retail investors apply for 1 lot only — since allotment for oversubscribed IPOs is by lottery, and each application (regardless of number of lots) gets one lottery entry.
What is Cut-off Price?
Selecting "Cut-off Price" means you agree to pay whatever price is discovered within the price band. This is the recommended option for retail investors — it ensures your application is not rejected due to price band changes. If you specify a price (e.g., ₹195 in a band of ₹190–200), your application is rejected if the final price is above ₹195.
Key Documents Required
- Active Demat account (linked to your PAN)
- Savings bank account (for ASBA fund blocking)
- UPI ID registered on the same bank account
- PAN card
After Applying
After submitting, your application is visible in the NSE/BSE portal under your PAN within 1 business day. You can modify or withdraw your application before the IPO closes. After the IPO closes, you cannot cancel the application.