Applying for an IPO

How to Apply for an IPO Using UPI or ASBA

Step-by-step: applying for an IPO through a broker app with UPI or through net banking with ASBA, and the common mistakes that get applications rejected.

By Niva Market Watch Editorial · Published 30 Sep 2026

In India you never pay for IPO shares upfront. Instead, the application amount is blocked in your bank account and only debited if you receive shares. The two ways to do this are UPI, usually through a broker app, and ASBA through your bank's net banking. This guide covers both, step by step, and the mistakes that most often get applications rejected.

Before you start

A demat account and trading account — the shares are credited to the demat account.
A bank account in your own name. For UPI, a UPI ID linked to that account on an app that supports IPO mandates.
Your PAN. The PAN on the application must match the demat account's first holder, and the bank account should belong to the same person.

One PAN, one application per category. Multiple applications from the same PAN in the same category are treated as duplicates and can all be rejected. Applications from different family members, each with their own PAN, demat and bank account, are separate applications.

Option 1: UPI through a broker app

This is the most common route for retail investors, and is available for applications up to ₹5 lakh.

Open your broker's app or website and go to the IPO section. Choose the issue.
Choose your investor category (usually “Individual” / retail). Enter the number of lots, and either a price within the band or tick cut-off — see price band and cut-off.
Enter your UPI ID and submit. The broker sends your bid to the exchange, which sends a mandate request to your UPI app.
Open your UPI app, find the IPO mandate (sometimes under “mandates” or “pending requests”), check the amount and approve it with your UPI PIN.
The amount is now blocked in your bank account. You can usually see it as a mandate or a hold, and your available balance goes down, but no money has left the account.

The bid is valid only once the mandate is approved. If you do not approve it before the cut-off time on the closing day, the application lapses.

Option 2: ASBA through net banking

ASBA — Application Supported by Blocked Amount — works through banks registered as Self-Certified Syndicate Banks (SCSBs). It has no ₹5 lakh limit, so it is the usual route for larger applications.

Log in to net banking and find the IPO / ASBA / “Invest in IPO” section.
Select the issue, enter your demat account details (DP ID and client ID), category, number of lots and bid price or cut-off.
Confirm. The bank blocks the amount immediately; there is no separate mandate to approve.

What happens next

During the bidding period you can modify or cancel a retail bid through the same channel.
After the issue closes, the registrar finalises allotment — see how allotment works.
If you are allotted, only the amount for the allotted shares is debited; any remainder is released. If not, the whole amount is released. See refunds and unblocking.
Shares appear in your demat account before listing. Check your status with these steps.

Common reasons applications fail

Problem	How to avoid it
UPI mandate not approved in time	Approve the mandate as soon as it arrives. Do not apply in the last hour of the last day.
Insufficient balance when the mandate is approved	Keep the full amount available until allotment.
PAN mismatch between application and demat account	Apply from the demat account of the person whose PAN you use.
Bank account or UPI ID of a different person	Use a bank account and UPI ID in the applicant's own name.
Duplicate applications from the same PAN	Apply once per category per PAN.
Retail application above ₹2 lakh	Check the maximum lots at the cap price before submitting.
Bid below the final price (when not at cut-off)	Retail investors can bid at cut-off to avoid this.

Fees

Many brokers do not charge for IPO applications, but some may. Check your broker's and bank's charges before applying.

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