To apply for an IPO in India, submit your bid through an eligible bank ASBA channel or, if you qualify, an authorized intermediary using UPI. With bank ASBA, you authorize your bank to block the bid amount. With UPI, you also have to accept and authorize a mandate request; submitting the bid alone does not complete the application. Check the live offer document and exchange issue page for the issue’s dates, eligible channels, and mandate deadline.
ASBA and UPI: what is the difference?
ASBA means Application Supported by Blocked Amount. You instruct an eligible bank to block the amount needed for your bid while the application is processed. The money remains in your account and continues to earn interest. If shares are allotted, the amount due is debited; any unneeded blocked amount is released. If you receive no allotment, no refund transfer is needed. SEBI explains ASBA.
UPI is a way to authorize the block within the ASBA process for eligible individual applications. You provide your own UPI ID linked to your bank account, then accept a mandate request and authorize it with your UPI PIN. Check that the block succeeded. The bid is not complete merely because you submitted an application. See SEBI’s FAQ and the SEBI prospectus guidance.
Choose an application route
| Route | Where you submit | How the amount is blocked | What to check |
|---|---|---|---|
| Bank ASBA | An eligible Self-Certified Syndicate Bank (SCSB), using a channel it supports | Through the bank’s ASBA instructions | Confirm the bank and its online or physical channel are eligible for the issue. |
| UPI through an intermediary | An authorized syndicate member, registered stockbroker, registrar and transfer agent, or depository participant; supported online facilities may also be available | Accept and authorize the UPI mandate request | Confirm that you are eligible, the intermediary is authorized, and your own bank account and UPI ID are used. |
| Linked 3-in-1 account | A bank or broker offering the service | Through the linked account facility | Availability depends on the provider and the issue. |
SEBI describes these routes in its IPO FAQ. The available route can depend on your investor category, application amount, intermediary, and issue. Do not assume a particular bank, broker, app, or UPI handle is supported; check SEBI’s current eligible information and the live offer document. The SEBI UPI investor guidance states a limit of ₹5 lakh per transaction for UPI applications and describes the mechanism for eligible individual investors. Confirm category-specific rules in the offer document.
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How to apply, step by step
- Check the live issue details. Read the offer document and the exchange’s issue page. Confirm bidding dates, your investor category, minimum or lot size, price or cut-off option, permitted application channels, and the mandate deadline. Issue deadlines and rules can differ; NSE’s issue information lists details issue by issue.
- Prepare matching applicant details. Use the applicant’s correct PAN and active demat account details. Make sure the name and identifiers match the depository record and that the account can receive shares in demat form. SEBI’s IPO investor checklist covers these checks.
- Select a permitted route. Use bank ASBA through an eligible SCSB, or apply through UPI using an authorized intermediary if you qualify. Use the applicant’s own bank account and, for UPI, their own linked UPI ID. A third party’s account or UPI ID can lead to rejection.
- Enter the bid and submit before the issue closes. Follow the issue’s instructions for quantity, price or cut-off, category, and other application fields. Keep enough available funds to cover the amount to be blocked. Retain the application acknowledgement.
- If using UPI, complete the mandate. Watch the UPI app associated with the ID you entered for the sponsor-bank mandate request. Accept it within the stated window, authorize it with your UPI PIN, and verify that the amount is blocked. An unaccepted mandate or failed block can leave the application incomplete.
- Check the application status. Use the intermediary or exchange status tools available for that issue to confirm the bid and, where applicable, the mandate. Keep the acknowledgement for reference.
Common reasons an application may fail
- Third-party payment details: The bank account and UPI ID should belong to the applicant; using another person’s details can result in rejection.
- Mismatched information: A PAN, demat, name, or UPI detail that does not match the applicant’s records can prevent processing.
- Unsupported channel: A bank, app, intermediary, or UPI handle that is not permitted for the issue may not process the application.
- Insufficient available funds: The account must have enough available money for the block.
- Unfinished UPI mandate: Submitting the bid is not enough if the mandate is not accepted and authorized before its deadline.
- Missed issue deadline: Do not rely on a generic cutoff time. Check the live issue page for the actual bidding and mandate cutoffs.
What happens after you apply?
ASBA keeps the required amount blocked in your account while the application is processed. If shares are allotted, the amount due is debited; the balance is released. If there is no allotment, the block is released without a refund transfer. Applying through either route does not guarantee an allotment.
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