An IPO (Initial Public Offering) is when a company sells its shares to the public for the first time. Applying just means bidding for those shares before they list on the exchange. The good news: the process is now fully online and takes a few minutes — and your money is only blocked, not spent, until (and unless) you actually get shares. Here's the whole flow.
What you need before you apply
Three things: a demat + trading account (with any broker), your PAN, and enough clear funds in your bank. Keep your 16-digit demat number handy — the DP ID and Client ID — plus either a UPI ID linked to that bank, or net-banking access. That's it; there's no paperwork.
Method 1 — Apply via UPI (through your broker app)
This is the fastest and most common way. In your broker app, open the IPO section, pick the live issue, choose the lot size and your bid price (tick 'cut-off' to accept the final price), enter your UPI ID and submit. A mandate request lands in your UPI app (GPay/PhonePe/etc.) — approve it, and that amount is blocked in your account. You can approve the mandate up to 5 PM on the closing day. Note: the UPI route allows applications up to ₹5 lakh.
Method 2 — Apply via ASBA (through net banking)
ASBA (Application Supported by Blocked Amount) lets you apply straight from your bank. Log in to net banking, open the IPO/ASBA section, select the issue, enter your demat details and bid, and submit. Here the amount is blocked directly by your bank — no separate UPI mandate to approve. It's handy for larger applications and if UPI mandates give you trouble.
How much can you apply for?
Retail Individual Investors (RII) can apply for up to ₹2 lakh in one IPO — that's the category most people use. Bids are in fixed 'lots' (a set number of shares), and you must apply for at least one full lot. Apply above ₹2 lakh and you move into the HNI category, which has different allotment rules.
What happens to your money after you apply
Your money is blocked, not debited — you keep earning interest on it while it's held. If the IPO is oversubscribed (more demand than shares), retail allotment is by a computerised lottery, so applying doesn't guarantee shares. If you get an allotment, the amount is debited and shares land in your demat before listing. If you don't, the block is released in a couple of days and the money is fully yours again.
Practise trading before you invest — Market Racers (free)Two honest reminders: applying is not the same as getting shares (oversubscribed IPOs come down to a lottery), and getting shares is not the same as making money — plenty of IPOs list below their price. Apply for businesses you'd want to own, not just for the listing-day pop.
Brokerage Calculator — what selling those shares will costFrequently asked questions
- Can I apply for an IPO without a demat account?
- No. Shares are credited in electronic form, so a demat account is mandatory to apply. You can open one free with most brokers in a day, then apply via UPI on the app or ASBA on net banking.
- Why is my money blocked and not deducted when I apply for an IPO?
- Both UPI and ASBA use a 'blocked amount' system — the money stays in your account (still earning interest) but is frozen. It's only debited if you actually receive an allotment; if you don't, the block is released in a couple of days.
- How much can a retail investor apply for in an IPO?
- Up to ₹2 lakh per IPO under the Retail Individual Investor category. You bid in fixed lots and must apply for at least one full lot. Above ₹2 lakh you move into the HNI category, which is allotted differently.