How to Apply for an IPO in India: Step-by-Step Guide
To apply for an IPO in India you need a demat account and a UPI ID, then place a bid for at least one lot within the price band while the issue is open.
Key takeaways
- You need a demat account and a UPI ID linked to your bank.
- Bid for at least one lot at a price inside the band, and approve the UPI mandate.
- Check allotment on the registrar site after the issue closes.
To apply for an IPO in India you need a demat account and a bank account with a UPI ID. You then place a bid for at least one lot within the price band while the issue is open, and approve the payment request on your UPI app.
What do you need before applying?
- A demat and trading account with a broker.
- A bank account linked to a UPI ID, or an account that supports ASBA.
- Enough balance to cover the bid amount, which stays blocked until allotment.
How do you place an IPO bid, step by step?
- Open the IPO section of your broker app and pick an issue that is currently open. The IPO calendar shows what is live.
- Choose the number of lots. Retail investors can bid up to ₹2 lakh in total in the retail category.
- Enter the price. Choosing the cut-off price makes your bid valid at any final price in the band.
- Enter your UPI ID and submit the bid.
- Open your UPI app and approve the mandate request before the deadline. Without approval, the bid is not valid.
What happens after you apply?
After the issue closes, the registrar finalises allotment. You can check your status on the registrar website or your broker app. If you receive shares, they are credited to your demat account before listing. If not, the blocked amount is released.
What should you check before you bid?
Read the offer document, look at the company's profits and debt, compare the valuation with peers, and treat GMP as sentiment only. New to this? Start with what an IPO is.
Frequently asked questions
What is the minimum investment in an IPO?
The minimum is one lot at the upper end of the price band. Lot size and price band are announced for each IPO, so the amount differs from issue to issue.
Can I apply for an IPO without a demat account?
No. Shares are allotted electronically, so a demat account is required to apply.
When do I get my money back if I am not allotted shares?
The blocked amount is released after the allotment is finalised, usually within a few working days of the issue closing.
