How to Apply IPO Online in India (Step-by-Step Guide)

Applying for IPOs has become very easy in India. In the past, one had to fill out long documents and go to banks in person; however, today one can apply for an IPO online in a matter of minutes from a computer or a mobile phone.

If you do not have any prior experience in the stock market and are searching for how to apply for IPOs online in India, this is a simple guide for you, where we explain everything in detail in a step by step manner about the requirements and the complete regulations of IPO Application in India, including online UPI and ASBA IPO application.

What is an IPO

IPO (initial Public Offering) is a process in which a once private company, for the first time, sells its company stocks to the public and thereafter the company is listed on the stock exchange such as NSE or BSE, and its company shares can be bought or sold by investors in the secondary market.

Here are the main reasons why most people invest in IPO:

1. - To gain immediate profit on the first day of share listing
2. - To own a stake of a company in its early growth phases.
3. - To spread their holdings across different assets.

Who can apply for an IPO in India?

Anyone who is a resident of India can apply for an IPO provided that he/she has:

1. - A PAN card
2. - A demat account
3. - A bank account linked with PAN
4. - UPI ID (applicable for all retail investors)
   
   

This set of instructions on how to apply for an IPO for beginners is written with the assumption that the user is a retail investor and applying for IPOs digitally today.

 

 

Required Items While Applying for IPO Online

One must check the following before starting the IPO application process in India:

1. Demat account

You must have a Demat account to sell your IPO shares in the secondary market. However, the application for the IPO will not be successfully processed if the applicant does not have a Demat account.

2. Bank account linked with your PAN

The user must have a valid bank account with their PAN linked to the Demat account.

3. UPI ID

(Required for Retail Investors)

You also need to have a valid UPI ID that is linked with your bank account to apply for an IPO using UPI.

How To Apply For IPO Online India (Step-by-Step Guide)

Here is the step-by-step guide on how to apply for IPO online in India:-

Method 1: Apply IPO Online Through Broker (UPI Method)

Step 1: Log Into Your Broker’s App or Website

If you have a stock broking account with companies such as Zerodha, Groww, Angel One, Upstox, etc., you can log in to their platform.

Step 2: Go to the IPO section 

Click on the IPO or Invest in IPO feature.

Step 3: Select IPO

You will see a list of IPOs that are currently available. Select the one you want to apply for.

Step 4: Enter Application Details

You will need to fill in the:

- Number of lots

- Price (cut-off price is preferred for novice users)

- Your UPI ID

This step is to apply for the IPO online.

Step 5: Submit Your Application

A UPI mandate request will be sent to your UPI app.

Step 6: UPI Mandate Request.

You will need to approve the UPI mandate.

Important: Money is blocked, not deducted. 

Method 2: Applying for IPOs Using ASBA (Application Supported by Blocked Amount) Through a Bank

This method is very popular among investors who apply through banks directly. Below is a guide for applying via ASBA.

Steps for ASBA IPO Application

• First, log in to your net banking.

• Select the ASBA or IPO tab.

• Then select the IPO.

• Next, you will enter the Demat information and select the number of shares you would like to buy and the price.

• Then apply.

This method of application is safe and regulated by SEBI.

The bank will block the necessary amount of money until allotment, which is a common practice, so don't worry.

IPO Online Through UPI vs ASBA: Which Is Better?

Feature	UPI Method	ASBA Method
Ease of use	Very easy	Moderate
Approval	UPI app	Net banking
Popular with beginners	Yes	No
Broker involvement	Yes	No

 

For relative ease, the UPI method is recommended.

What Happens After Submitting an IPO Application?

Upon finalising the IPO application process India, several sequenced actions follow.

1. Application Approved

The system will register your application after you approve the UPI mandate.

2. Allotment Process

Demand is then filled after the closing of the IPO.

3. Refund or Unblocking of Funds

If you are allotted → the money is deducted from your account.

If you are not allotted → the blocked amount is released back to your account.

4. Shares Credited to Demat Account

The allotted accounts are credited on or before the date of listing.

Checking IPO Allotment Status Online

IPO Allotment Status can be checked on:

- The registrar’s website (Link Intime, KFin, Bigshare, etc.)

- The BSE website

What you need:

- Your PAN Number

- or Your Application Number

 

 

Mistakes Beginners Make When Applying IPO

When you research to understand how to apply IPO for beginners, here are common mistakes interviewed traders have made:

- Not approving the UPI mandate.

- Applying without a cut-off price.

- Entering Demat details incorrectly.

- Applying multiple times from the same PAN.

- IPO fundamentals are ignored.

Tips to Increase IPO Allotment Chances

Though most of the time, allotment for an oversubscribed IPO is based on luck, there are some ways to improve your chances of allotment:

- Placing an application at the cut-off price

- Applying early (during Day 1 or Day 2).

- Legally applying from multiple family PANs.

- Not applying to heavily hyped IPOs.

Read our detailed blog on how to increase IPO allotment chances in India.

Is it Safe Applying for IPO Online?

Yes, without a doubt. Applying for an IPO online in India is one hundred percent safe because

- SEBI regulates it.

- The money stays blocked in your bank account.

- Shares are credited to your Demat account.

- There is no physical paperwork needed.

Should Beginners Invest in IPOs?

• Yes, but beginners should read the RHP (Red Herring Prospectus) for IPO investing.
• Get to know about the company.
• Don't just invest in GMP or hype.
• Start with small investments.

Knowing how to apply for an IPO online in India is a small part of the puzzle. The bigger part involves decision-making.

 

 

Final Thoughts

Thanks to digital platforms, applying for an IPO can be a breeze. Whether you want to use IPO online through UPI or the ASBA IPO application, it's fast, simple, secure, and user-friendly. If you understand it well, applying for IPO online can be done in under 5 minutes. But remember, it is always more important to choose the right IPO for long-term success than just how to apply for one.

DISCLAIMER: This blog is NOT any buy or sell recommendation. No investment or trading advice is given. The content is purely for educational and information purposes only. Always consult your eligible financial advisor for investment-related decisions.