Applying for an Initial Public Offering (IPO) in India is 100% digital, cashless, and secured under SEBI’s ASBA (Application Supported by Blocked Amount) framework. Whether applying through net banking or via a broker app with UPI, your funds remain in your bank account earning interest until share allotment is confirmed.
How ASBA Protects Retail Investors
Under ASBA, money is never debited when you submit an IPO application. Instead, your bank simply places a temporary lien (hold) on the exact application amount:
- Full Allotment: If you receive shares, the blocked amount is debited on allotment day.
- Non-Allotment: If you receive no shares, your bank lifts the hold, making funds instantly available.
- Interest Earnings: Your blocked balance continues to accrue savings account interest throughout the bidding window.
Step-by-Step Guide: Applying via UPI on Broker Apps (Zerodha, Groww, Angel One)
- Log in to Your Trading App: Navigate to the “IPO” or “Bids” tab.
- Select the Issue: Choose the open IPO from the active list.
- Enter Lot Quantity & Price: Select the number of lots (e.g. 1 lot) and ensure the “Cut-Off Price” checkbox is checked.
- Enter Your Valid UPI ID: Provide your UPI VPA (e.g. yourname@okhdfcbank, yourname@icici).
- Approve the UPI Mandate: Open your UPI app (Google Pay, PhonePe, BHIM) and authorize the mandate request before 5:00 PM on closing day.
Investor Categories: Retail vs. sNII vs. bNII
SEBI classifies non-institutional applicants into three distinct tiers:
- Retail Individual Investors (RII): Application value up to ₹2 Lakh. Eligible for cut-off price bidding and computerized lottery allotment.
- Small NII (sNII): Application value between ₹2 Lakh and ₹10 Lakh. Cannot bid at cut-off; must specify price.
- Big NII (bNII): Application value exceeding ₹10 Lakh. Competitive bidding tier.
Frequently Asked Questions
What happens if I forget to approve the UPI mandate before 5:00 PM?
If you fail to approve the UPI mandate before the exchange cut-off (typically 5:00 PM on the closing date), your application is invalidated and will not be considered for allotment.
How can I check whether my application received allotment?
Allotment status can be checked directly via PAN number on registrar portals (Link Intime, KFintech) or on our IPO Allotment Checker.
Can I apply for an IPO using multiple demat accounts under the same PAN?
No. Multiple applications under the same PAN in the same IPO are strictly prohibited by SEBI and are automatically rejected by the registrar.
SEBI Statutory Disclaimer
Educational guide on primary market participation. IPO applications are subject to market risks and allotment lottery probabilities.
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