How to Apply for an IPO in India: Step-by-Step Guide
The Indian IPO market is booming. Whether you are using a broker app like Zerodha or your bank's net banking, applying for an IPO has never been easier. Follow our comprehensive guide to get started.
Pre-requisites for IPO Application
PAN Card
A valid PAN card is mandatory for any investment in the Indian stock market.
Demat Account
You need a Demat account with a SEBI-registered broker like Zerodha, Groww, or Upstox.
Bank Account
A bank account linked with your PAN and Demat, with sufficient funds for the application.
Method 1: Apply via UPI
The most popular and convenient method using your broker app.
Login to Broker App
Open your broker app (Zerodha, Groww, etc.) and navigate to the 'IPOs' or 'Invest' section.
Select the IPO
Choose the active IPO you want to apply for from the list of 'Open' issues.
Enter Bid Details
Select the lot size (usually 1 lot for retail) and always choose the 'Cut-off Price' for better allotment chances.
Enter UPI ID
Provide your UPI ID (e.g., name@okaxis or name@ybl). This ID must be linked to your own bank account.
Approve Mandate
Open your UPI app (GPay, PhonePe, BHIM) and approve the payment mandate request. Funds will be blocked, not debited.
Method 2: Apply via ASBA
Preferred by HNI investors and for high-value applications.
Bank Login
Access your Net Banking portal (HDFC, SBI, ICICI, etc.) and locate the 'IPO/ASBA' menu.
Select Issue
Browse through the list of active IPOs and choose the one you wish to bid for.
Applicant Info
Provide your Demat details (CDSL/NSDL) and PAN. Most banks save this for future use.
Block Funds
Enter bid details and submit. The amount will be blocked in your account instantly.
Pro Tips for IPO Allotment
Boost your chances of getting shares with these time-tested strategies used by professional investors.
Apply at Cut-off Price
Always check the 'Cut-off price' box. It ensures your application is valid regardless of the final discovered price.
One PAN, One Application
Multiple applications under the same PAN will be rejected. Don't waste your funds trying to game the system.
Family Demat Strategy
Apply for 1 lot each from Demat accounts of your family members to maximize your chances in the lottery.
Avoid the Last Minute
Submit your bid by Day 2 or early Day 3. Technical glitches in UPI mandates are common during the final hours.
The IPO Lifecycle
What happens after you submit your application?
Bidding Period
Usually 3 working days to apply for the issue.
Basis of Allotment
Registrar finalizes the share allotment process.
Refund / Credit
Funds unblocked or shares credited to your Demat.
Listing Day
Shares start trading on the NSE/BSE stock exchanges.