Investing in an Initial Public Offering (IPO) is an exciting way for individuals to become part-owners of a company going public. If you’ve ever wondered how to apply for IPO in India and what the process looks like, you’re in the right place. This guide walks you through the two most popular methods: UPI and ASBA.
Whether you’re a first-time investor or someone looking to streamline your application process, let’s simplify the journey for you.
Table of Contents
What is an IPO?
An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time. It allows investors to buy equity in a business that’s aiming to raise capital for expansion or other needs.
How to Apply for IPO in India – At a Glance
There are two primary ways to apply for an IPO in India:
Method |
Description |
Best For |
|---|---|---|
UPI Method |
Application via mobile UPI apps linked to your bank account |
Retail investors using apps |
ASBA Method |
Application Supported by Blocked Amount via net banking or offline |
Traditional investors & banks |
Now, let’s go deeper into each process.
Method 1: Apply for IPO through UPI – Step-by-Step
UPI is a convenient and fast-growing option, especially among mobile-savvy investors. Here’s how to apply for IPO in India using the UPI method:
Steps to Apply via UPI
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Log in to your broker’s app (like Zerodha, Upstox, Groww).
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Go to the IPO section and choose the IPO you want to invest in.
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Enter your UPI ID linked to your bank account.
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Fill in the application details:
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Quantity of shares
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Bid price (or choose “cut-off”)
-
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Submit the application.
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Approve the UPI mandate request on your UPI app (PhonePe, GPay, etc.).
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Wait for confirmation – funds are blocked until allotment.
Benefits of IPO through UPI
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Seamless and mobile-friendly
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No need to log into net banking
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Quick payment approval via UPI apps
Method 2: Apply via ASBA – Step-by-Step
ASBA (Application Supported by Blocked Amount) is an older but trusted method to apply for IPOs. The funds remain in your account and are only debited if shares are allotted.
Steps to Apply via ASBA Method
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Log in to your net banking portal.
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Go to the IPO or ASBA section.
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Select the IPO you want to apply for.
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Fill in the application details:
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Demat account number (DP ID)
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PAN
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Bid quantity and price
-
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Submit your application.
Your funds stay in the account but are blocked, meaning they can’t be used until allotment is finalized.
Why Choose the ASBA Method?
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Safe and reliable
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No need for third-party apps
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Best for those comfortable with internet banking
UPI vs ASBA – Quick Comparison
Feature |
UPI Method |
ASBA Method |
|---|---|---|
Accessibility |
Mobile apps |
Net banking platforms |
Ease of Use |
Very high |
Moderate |
Funds Blocked By |
UPI-linked bank |
Your bank (directly) |
Preferred By |
Retail investors |
Conservative/traditional investors |
Speed |
Fast (instant UPI approval) |
Moderate (bank processing time) |
Pro Tips for Applying in an IPO
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Always double-check your UPI ID or bank details.
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Apply early to avoid last-minute tech issues.
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Check your Demat account balance post-allotment.
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Ensure you have sufficient funds in your account to avoid rejection.
FAQs – Frequently Asked Questions
1. What is the best way to apply for an IPO in India?
The best way depends on your comfort level. If you’re tech-savvy, the IPO through UPI method is fast and easy. For more control and a traditional approach, go with the ASBA method via net banking.
2. Can I apply for the same IPO using both UPI and ASBA?
No, SEBI rules prohibit applying for the same IPO through both methods. Doing so may lead to rejection due to multiple applications.
3. What happens if I don’t get IPO allotment?
If you’re not allotted shares, the blocked amount is released automatically—no manual cancellation required.
4. Is it safe to apply for IPOs using UPI?
Yes, it’s safe as long as you use your registered UPI ID and approve the mandate request from a trusted app like Google Pay, PhonePe, or BHIM.
Final Thoughts
Learning how to apply for IPO in India isn’t as complicated as it might seem. Whether you prefer the IPO through UPI route for convenience or the ASBA method for control, both are valid and secure ways to invest in upcoming opportunities.
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