Apply for IPO in India in 2026 takes under 5 minutes from your phone. Three things make it possible. A demat account, a UPI ID linked to your bank and a PAN that matches across both.
Author: Aditya Pareek | EQMint
That’s the entire toolkit. No paperwork, no bank queues, no broker office visits. The whole process has moved digital and the T+3 settlement cycle means shares hit your demat account within 3 working days of allotment.
This guide walks through every step. What to set up before you apply, the two methods to actually place the bid, what to do after allotment and the common mistakes that get applications rejected.
What you need before you apply
Three things, all of which take less than a day to set up.
A demat account. This is the digital locker that holds your shares post allotment. Open one with any SEBI registered broker. Zerodha, Groww, Upstox, Angel One, ICICI Direct, HDFC Securities, Motilal Oswal. All offer free account opening with online KYC. The process takes 10 to 15 minutes if your Aadhaar is linked to your mobile number.
A bank account with UPI enabled. This is where the application amount gets blocked. The bank must be on SEBI’s list of Self Certified Syndicate Banks (SCSBs), which covers essentially every major Indian bank. Make sure UPI is active and your daily limit covers the IPO amount.
A PAN card. Mandatory. The PAN on your bank account and demat account must match exactly. Applications with mismatched PAN are rejected automatically. This is the single most common rejection reason for first time applicants.
That’s it. Once these three are in place, you can apply for IPO that opens.
The two methods to apply
There are two ways to apply for IPO online: through your broker’s app using UPI, or through your bank’s net banking using ASBA. Both block funds (instead of deducting them upfront) and both are equally valid.
UPI through broker app is faster and more popular. Use it for amounts up to ₹5 lakh.
ASBA through net banking is more reliable for large applications. Use it for amounts above ₹2 lakh, or if UPI mandate timeouts have caused issues before.
The mechanics differ but the end result is identical. Funds get blocked in your bank account when you apply. If you get allotment, the money is debited. If you don’t get allotment, the block is released within 4 working days.
Method 1: Apply through your broker app (UPI)
This is the simplest path. Most retail investors use this method.
Step 1. Open your broker’s app. Zerodha (Kite), Groww, Upstox, Angel One, etc. All have a dedicated IPO section.
Step 2. Navigate to the IPO section. Usually labelled “IPO” on the home screen or under “More” or “Invest”. Tap on the active IPO you want to apply for.
Step 3. Read the basics. Price band, lot size, minimum investment, issue dates, retail discount (if any). Make sure you understand what you’re applying for.
Step 4. Enter your bid. Select the number of lots (one lot is the minimum bid, defined by the company). For most retail investors, tick the “Cut off price” option. This means you agree to pay the final price band, whatever it ends up being. Cut off price improves your allotment odds because your bid is treated as a maximum bid.
Step 5. Enter your UPI ID. Format is usually yourname@bankname (yourname@okaxis, yourname@ybl, etc.). Double check the spelling. A typo here is the second most common rejection reason.
Step 6. Submit the application. The broker app will show “Application submitted” or similar.
Step 7. Approve the UPI mandate. Switch to your UPI app (GPay, PhonePe, Paytm, BHIM, etc.). You’ll see a pending collect request. Open it within 30 minutes. Enter your UPI PIN to approve. The amount gets blocked in your bank account.
That’s it. Total time: 3 to 5 minutes. If you miss the 30 minute mandate window, the application is cancelled. You’ll need to reapply from step 1.
Method 2: Apply through net banking (ASBA)
ASBA stands for Application Supported by Blocked Amount. SEBI developed this method specifically for IPO applications. The advantage: funds remain in your bank account and continue to earn interest while blocked. Deducted only if allotment comes through.
Step 1. Log in to your bank’s net banking portal. SBI, HDFC, ICICI, Axis, Kotak, etc.
Step 2. Find the ASBA or IPO section. Different banks label it differently. SBI: eServices then IPO (Equity) HDFC: Requests then IPO Application ICICI: Investments then IPO/ASBA Axis: Investments then Apply for IPO
Step 3. Select the IPO from the list of active issues. Read the offer document link if you haven’t already.
Step 4. Enter your demat details. Depository (NSDL or CDSL), DP ID and Client ID. Most banks let you save these as a profile so retyping isn’t required.
Step 5. Place your bid. Quantity in multiples of the lot size. For retail, tick “Cut off price”. You can place up to 3 different bids in the same application, but only the highest bid amount will be blocked.
Step 6. Confirm and submit. The amount is blocked from your account immediately.
No UPI mandate approval needed. No 30 minute window. This is why ASBA is considered more reliable for large applications. The full process takes 5 to 7 minutes.
What happens after you apply
Once you’ve submitted the application, the timeline is fixed.
Day 1 to 3. IPO is open for subscription. Anyone can apply during this window.
Day 4 (T+1). Allotment is finalised. The registrar (Link Intime or KFin Technologies for most issues) decides who gets shares.
Day 5 (T+2). Allotment status is published. You can check it on the registrar’s website, on the BSE website, or in your broker app.
Day 6 (T+3). Refund of unblocked amounts. If allotment didn’t come through, the block is released and the money becomes spendable again. If allotment came through, the exact amount is debited.
Day 6 to 7. Shares are credited to your demat account.
Day 7 or so. The stock lists on NSE and BSE. You can sell or hold from this point onwards.
This 7 day window has compressed significantly over the past 5 years. In 2020, it took 12 to 14 days. The T+3 cycle is one of the cleanest improvements in Indian retail investing infrastructure.
How allotment actually works
This is the part most retail investors get wrong.
For oversubscribed IPOs, allotment is done by lottery. Order of application, number of lots applied for and choice of broker make zero difference to who gets shares.
If retail subscription is, say, 5x oversubscribed, roughly 1 in 5 retail applicants gets allotment. The lottery is run by the registrar using a randomisation algorithm. Each unique PAN is one entry in the lottery for the minimum lot size.
That’s the key insight. Applying for 1 lot or 15 lots makes no difference to allotment odds in the retail category, because retail applicants get at most 1 lot in heavily oversubscribed issues. The maximum retail bid amount (currently ₹2 lakh) does not change odds either.
The only way to improve allotment odds: apply across multiple unique PANs in your family. Each spouse, parent or adult child counts as a separate applicant. All applications must be from separate demat accounts and separate PANs. Same name across multiple accounts is rejected.
How to check IPO allotment status
Three ways, all free.
Method 1. Visit the registrar’s website. Link Intime (now KFin Technologies for most issues). Enter your PAN or application number.
Method 2. Visit the BSE website. Go to bseindia.com, then IPO, then Application Status. Select the company, enter your application number or PAN.
Method 3. Check your broker app. Most brokers show allotment status in the IPO section within hours of the registrar’s announcement.
The first two methods are official sources. Broker apps sometimes lag by a few hours.
Common reasons applications get rejected
The five most frequent issues to avoid.
PAN mismatch. PAN on your bank account, demat account and IPO application must all match exactly. Even small differences (initials with or without dots) cause rejection.
UPI mandate not approved within 30 minutes. If the window in the UPI app passes, the application is cancelled. Reapply from scratch.
Insufficient funds in the bank account. The application amount must be available in your bank account at the time of the block. The block fails if the balance is lower.
Multiple applications on the same PAN. Strictly prohibited. SEBI rules allow only one application per PAN per IPO across the entire system. Multiple applications get all rejected.
Wrong demat details. DP ID, Client ID or depository (NSDL vs CDSL) entered incorrectly. The application gets rejected at the verification stage.
When to apply for IPO
A short note on timing within the subscription window.
Day 1: Apply for IPO only if homework was done before the issue opened. Day 1 carries low information value (subscription numbers are still building).
Day 2: The sweet spot for most retail investors. You can see how QIBs and HNIs are subscribing. If QIBs are subscribing aggressively, the issue is likely a strong one. If QIBs are slow, that’s a signal to be cautious.
Day 3 (final day): Apply for IPO only with full confidence. Many investors wait for day 3 to see the full demand picture. The risk is missing the cutoff time (usually 5 PM on the last day) or your bank’s IPO portal slowing down due to last day load.
FAQ
Can someone apply for IPO without a demat account? No. A demat account is mandatory. Shares can only be credited to a demat account post allotment.
How much money is needed to apply for IPO? Minimum bid size depends on the IPO. Most retail lots are priced between ₹14,000 and ₹15,000 to comply with SEBI rules on minimum lot value. The retail maximum is ₹2 lakh per PAN per IPO.
Can someone apply for IPO through multiple brokers? No. One application per PAN is allowed across the entire system, regardless of which broker or bank is used.
Is the money deducted immediately when applying? No. The amount is only blocked. It stays in your bank account and continues to earn interest. Deduction happens only if allotment comes through.
What if a retail investor wants to cancel an IPO application? Modification or cancellation is possible through the broker app or net banking, but only during the subscription window. Once the IPO closes, applications cannot be cancelled.
Are SME IPOs applied the same way? Yes, the process is identical. The only difference is the minimum lot size is much higher in SME IPOs (usually ₹100,000 to ₹150,000) compared to ₹14,000 to ₹15,000 for mainboard.
Can NRIs apply for IPOs? Yes, through an NRE or NRO bank account with ASBA facility. The process is similar but the application must be routed through specific NRI compliant intermediaries.
EQMint is not a SEBI registered investment adviser. This article is for informational purposes only and is not investment advice. Always read the RHP and consult a SEBI registered advisor before applying for any IPO.
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