How to apply for an IPO in India: you need a demat account and a UPI ID. Open your broker app, pick an open IPO, enter the number of lots, and submit your bid. Then approve the UPI request on your phone straight away. The whole thing takes about 5 minutes.
An IPO (Initial Public Offering) is when a company sells its shares to the public for the first time. Learning how to apply for an IPO in India sounds like a big step, but it isn’t. If you can pay a shop with UPI, you can do this. Let’s go through it one step at a time.
What do you need before you apply for an IPO in India?
You need four things. Most people already have two of them.
- A demat account. This is where your shares are stored. You can’t get IPO shares without one. Most brokers open a demat and a trading account together.
- A PAN card linked to that demat account. Your bid is tied to your PAN.
- A bank account linked to your mobile number. This is the account your money will be blocked in.
- A UPI ID. It looks like yourname@bank. You can find it in your UPI app. Use your own UPI ID only. SEBI says bids made with a third-party UPI ID or bank account are not valid for allotment.
Also keep enough balance in the bank account to cover at least one lot (we’ll explain lots in a minute).
How to apply for an IPO in India using UPI, step by step?
This is the most common way, and it works in almost every broker app. For individual investors bidding up to ₹5 lakh through a broker, SEBI makes UPI the payment method.
- Check the IPO details first. Look at the opening and closing dates, the price band, and the lot size. You’ll find these on the NSE or BSE website, or inside your broker app. Our IPO reports also track current issues.
- Open the IPO section in your broker app. It’s usually under “IPO” or “Invest”.
- Pick the IPO and tap Apply or Bid.
- Choose your category. Most people apply as an “Individual” (retail) investor.
- Enter your UPI ID.
- Enter the number of lots. One lot is the smallest amount you can bid for.
- Tick the “cut-off price” option. This means you accept whatever final price the company sets inside the price band. It also avoids a rejected bid if the final price lands at the top of the band. Only retail investors can use this option.
- Submit the bid.
- Open your UPI app and approve the request. Enter your UPI PIN. This last step is the one people forget.
Your money is not spent when you approve. The bank only blocks it. If you don’t get shares, the block is removed. If you do, the amount for your shares is deducted.
Watch the clock. Bidding for individual investors usually closes at 5 PM on the last day, and many brokers stop earlier. Don’t wait for the final hour. Check the exact time in the issue notice.
Prefer net banking? Many banks also let you apply through an ASBA (Application Supported by Blocked Amount) option under their Investments or IPO menu. The idea is the same: your bank blocks the money, and you don’t pay until shares are allotted.
How much money do you need to apply for an IPO?
You need at least the price of one lot. A retail (individual) investor can bid up to ₹2 lakh in total for one IPO. UPI itself allows up to ₹5 lakh, but bids above ₹2 lakh fall in the non-institutional category, according to SEBI’s UPI FAQ.
Here is an example with made-up numbers, just to show the maths:
| Item | Value |
|---|---|
| Price band | ₹95 to ₹100 per share |
| Lot size | 150 shares |
| Cost of 1 lot at the top price | 150 × ₹100 = ₹15,000 |
| Cost of 2 lots | ₹30,000 |
| Maximum lots under ₹2 lakh | 13 lots = ₹1,95,000 |
| 14 lots | ₹2,10,000 (too high for the retail category) |
So if you apply for 2 lots, your bank blocks ₹30,000. Always calculate with the top of the price band. That is the amount that gets blocked.
Every IPO has its own lot size and price band, so check the issue notice each time.
Can you change or cancel your IPO bid?
Yes, while the IPO is still open. Go back to the IPO section in the same app, open your bid, and choose Modify or Cancel. After you modify a bid, you may get a fresh UPI request. Approve it, or the new bid may not go through.
What if your UPI mandate fails or stays pending?
This is the most common problem. Try these fixes in order:
- Open your UPI app and check pending requests or notifications. The request may be waiting for you.
- Make sure the UPI ID you entered belongs to the UPI app you are checking.
- Check that your bank balance covers the full bid amount.
- Re-enter your UPI PIN carefully. A wrong PIN fails the request.
- Still stuck? Cancel the bid and apply again with a different UPI ID or bank. Do this well before the closing time.
If you never approve the request, your bid is not valid. That is the same as not applying.
What happens after you apply?
The closing day is called T. Under SEBI’s T+3 circular of 9 August 2023, shares list within three working days of closing. Here is what usually follows:
| Day | What happens |
|---|---|
| T | Bidding closes at 5 PM for individual investors |
| T+1 | Allotment is finalised, so you can check your status |
| T+2 | Shares are credited to your demat account, and unused money is unblocked |
| T+3 | Shares list on the exchange and can be traded |
You can check your allotment on the registrar’s website, on NSE or BSE, or in your broker app. Not every applicant gets shares. When an IPO gets more bids than shares available, allotment is done by lottery for retail investors.
Why do IPO applications get rejected?
Most rejections come from small, avoidable mistakes:
- The UPI request was never approved. This is the top reason.
- Someone else’s UPI ID. The UPI ID must be yours.
- A PAN or demat mismatch. Your name, PAN and demat details must match.
- More than one application on the same PAN. Duplicates can be rejected. Applying through your own broker with your own PAN, once, is enough.
- Not enough balance when the bank tries to block the money.
Is an SME IPO different from a mainboard IPO?
The steps are the same. The difference is the size of the bet. SME IPOs usually have bigger lot sizes, so you often need more money to apply. They also tend to be riskier and harder to sell in a hurry. Check the lot value in the issue notice before you bid.
Can a minor apply for an IPO?
Not on their own. A parent or guardian opens a demat account in the child’s name and places the bid on their behalf.
Should you apply for every IPO?
No. An IPO is a company’s offer to sell shares, and it is worth reading before you bid. Read the company’s offer document (the RHP) to understand what it does, how it makes money, and what the risks are. Our job is to show you the data, not to tell you what to buy.
The bottom line on how to apply for an IPO in India
Applying for an IPO comes down to three things. Have a demat account and a UPI ID ready. Place your bid before the closing time. Approve the UPI request on your phone. Most rejected bids fail on that last step.
Keep your bid within what you can afford to have blocked, and read the company’s offer document before you decide. This guide shows you how to apply for an IPO in India. Whether to apply is your call.
Sources and where to check the facts
IPO rules and dates can change, so confirm them on the official sources. Last reviewed: 6 November 2026.