Learn · 6 min read
How to Apply for an IPO in India (2026): UPI, ASBA and Allotment
Learn how to apply for an IPO in India using UPI or ASBA, how bidding, lots and price bands work, how allotment is decided, and what to check before applying.
What is an IPO?
An Initial Public Offering (IPO) is when a company sells its shares to the public for the first time and lists on the stock exchange. Investors bid for shares during a short subscription window.
IPOs can be exciting, but they are not guaranteed winners. Some list below their issue price. Investments are subject to market risk.
What you need before applying
Applying is simple once the basics are in place.
- An active demat and trading account
- A bank account with enough balance for your bid
- A UPI ID linked to that bank account, if applying via UPI
- Your PAN, which must match the demat account holder
Understanding price band, lot size and bids
Each IPO has a price band, a minimum and maximum price per share, and a minimum bid quantity called a lot. You can bid in multiples of that lot.
Retail investors can usually choose the cut-off price option, meaning you agree to pay whatever final price is decided within the band. This improves the chance that your bid is valid.
Pro tip: Always check the lot size and price band in the offer document or your app. They are different for every IPO.
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Applying through your broker with UPI
Open the IPO section in your broker's app, select the issue, enter the number of lots and your price, and add your UPI ID.
You will get a UPI mandate request on your UPI app. Approve it before the deadline mentioned in the app. Until you approve it, your application is not complete.
Applying through ASBA in net banking
ASBA stands for Application Supported by Blocked Amount. Many banks let you apply for IPOs directly from net banking, using your demat details.
In both UPI and ASBA, the bid amount is blocked in your bank account, not debited. You keep earning interest on it, and it is unblocked if you do not get an allotment.
How allotment works
If an IPO is oversubscribed in the retail category, allotment is typically done through a computerised lottery so that as many applicants as possible get the minimum lot.
After the basis of allotment is finalised, you can check your status on the registrar's website or the exchange site. Allotted shares are credited to your demat before listing, and blocked funds are released for unsuccessful bids.
Frequently asked questions
Can I apply for an IPO without a demat account?
No. Shares are allotted in electronic form, so you need a demat account to receive them.
Will applying for more lots improve my chances?
In heavily oversubscribed issues, retail allotment is often by lottery for the minimum lot, so applying for more lots may not improve your odds much.
Can I cancel my IPO application?
You can usually modify or cancel your bid during the subscription period through the same platform you used to apply.
Does my broker charge for IPO applications?
Many brokers do not charge for applying, but check your broker's tariff to be sure.
Can I apply from multiple accounts?
You should not apply more than once under the same PAN in the same category. Multiple applications from one PAN can be rejected.
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Educational content, not investment advice. Investments in securities markets are subject to market risks.