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Investing

How to Apply for an IPO Using ASBA or a UPI Mandate

Apply for an IPO through net banking (ASBA) or a broker app with a UPI mandate. Money is blocked, not debited, until allotment.

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Written by Aarav Sharma

Published 16 September 2026·7 min read

On this page10 sections
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You can apply for an IPO through your bank’s net banking (ASBA) or through a stockbroker’s app with a UPI mandate. Either way, the bid amount is only blocked in your bank account and is debited just for the shares you are allotted. You need a PAN, a demat account and a bank account in your own name.

Key facts

Item Rule
Payment method ASBA (Application Supported by Blocked Amount), directly with the bank or through a UPI mandate
UPI limit Individual applications up to ₹5 lakh
Retail category Individual bids up to ₹2 lakh
Minimum application One lot, with a value between ₹10,000 and ₹15,000
Issue period At least 3 and at most 10 working days
Closing-day cut-off 4 pm for net banking and syndicate UPI bids; 5 pm for online bids through 3-in-1 accounts
UPI mandate approval By 5 pm on the closing day
Allotment, credit, listing T+1, T+2 and T+3 working days after closing

Before you apply

ItemDetails
PAN.The same PAN must appear on your demat account and on the bank account you use. SEBI requires banks to check this before blocking money, and registrars reject bids where the two do not match.
Demat account.Allotted shares are credited here. See our guide on how a demat account works if you do not have one yet.
A bank that supports IPO bids.For net banking, the bank must be a Self Certified Syndicate Bank (SCSB). For UPI, both your bank and your UPI app must be on the lists SEBI publishes on its website.
Your own UPI ID and account.Bids paid from someone else’s UPI ID or bank account are not valid for allotment.
The offer documents.Read the red herring prospectus and the price band notice. Our explainer on what an IPO is covers the basics; this page covers the application itself.

Applying through net banking (ASBA)

Menu names vary between banks, but the flow is similar.

  1. Log in to net banking and open the IPO or ASBA section. Many banks place it under Investments or Demat.
  2. Select the issue from the list of open IPOs.
  3. Enter your depository participant ID and client ID exactly as they appear in your demat account.
  4. Choose your investor category.
  5. Enter the number of shares in multiples of the lot size, and a bid price within the price band. Retail bidders can tick “cut-off” instead.
  6. Confirm. The bank blocks the bid amount and shows an application number. Save it.

Submit net banking bids before 4 pm on the closing day. Bids above ₹5 lakh cannot go through UPI, so individuals bidding that much use their bank’s ASBA facility.

Applying through a broker app with a UPI mandate

  1. Open the IPO section of your broker’s app or website and select the issue.
  2. Enter the number of lots, and a bid price or the cut-off option.
  3. Enter your own UPI ID and submit the bid.
  4. Open your UPI app. A mandate request from the issue’s sponsor bank should appear.
  5. Check that the request is marked as a verified merchant, and that the application number and amount match your bid.
  6. Approve it with your UPI PIN. The amount is now blocked in your account.

Approve the mandate before 5 pm on the closing day. Requests pending after that lapse, and the bid is not considered. The exchange also sends an SMS once your bid is registered. Our IPO calendar lists issues that are open now.

Investor categories, lot size and the cut-off price

In an IPO made under Regulation 6(1) of the SEBI (Issue of Capital and Disclosure Requirements) Regulations, 2018, the net offer is split like this:

Category Who Share of net offer
Retail individual investors Individuals bidding up to ₹2 lakh At least 35%
Non-institutional investors (NII) Bids above ₹2 lakh; one-third of the portion is for ₹2 lakh to ₹10 lakh, two-thirds for above ₹10 lakh At least 15%
Qualified institutional buyers (QIB) Mutual funds, banks, insurers and similar; up to 60% of this portion can go to anchor investors At most 50%

Companies that do not meet the Regulation 6(1) tests, such as the operating profit track record, issue under Regulation 6(2) instead. There, retail gets at most 10%, NII at most 15% and QIBs at least 75%. An issue may also reserve shares for employees and for shareholders of a listed promoter company. The shareholder quota can be up to 10% of the issue size.

Lot size. The issuer sets the minimum lot so that its value falls between ₹10,000 and ₹15,000, and you bid in multiples of it. For example, the National Stock Exchange’s IPO, open from 17 to 21 September 2026, has a lot of 8 shares, costing ₹14,280 at the top of its ₹1,700–₹1,785 price band. A retail bidder can apply for as many lots as keep the total within ₹2 lakh.

Cut-off price. Retail investors, employees and retail shareholders can bid at the cut-off. That means you agree to buy at whatever issue price is finally fixed. Your bank blocks the amount at the top of the price band. QIB and NII bids at cut-off are rejected.

Modifying or cancelling a bid before the issue closes

  • Retail investors can revise or withdraw a bid until the issue closes. Use the same broker or bank you bid through.
  • For a UPI bid, each change sends a fresh mandate request, which you must approve again.
  • Non-institutional investors and QIBs cannot withdraw or lower their bids at any stage.
  • If the price band is revised, the issue must stay open for at least 3 more working days.

If you cancel, the block should be released. Under SEBI’s March 2021 circular, a bank that delays unblocking a cancelled bid owes you ₹100 a day or 15% a year on the amount, whichever is higher.

Common reasons bids get rejected

  • The PAN on the demat account does not match the PAN linked to the bank account.
  • A third-party UPI ID or bank account was used.
  • More than one application was made under the same PAN.
  • The UPI mandate was not approved by 5 pm on the closing day, or the account had too little money.
  • The DP ID or client ID was wrong or missing.
  • The bid price was below the floor price or above the cap price.
  • An NII or QIB bid was placed at cut-off.
  • The bid was for fewer shares than the minimum, or not in multiples of the lot.
  • The bank or UPI handle is not on SEBI’s list for IPO bids.

After you apply

Allotment is fixed on the first working day after the issue closes (T+1). Shares are credited and unused money is unblocked on T+2, and the shares list on T+3. You can check the result on the registrar’s website or on the BSE and NSE status pages. Gains on selling the shares are taxed as explained on our page on taxation of stocks.

Frequently asked questions

What is ASBA in an IPO?

ASBA stands for Application Supported by Blocked Amount. Your bank blocks the bid amount instead of debiting it, and debits only the cost of shares allotted.

Can I apply for an IPO without UPI?

Yes. You can apply through your bank’s net banking or branch if the bank is an SCSB, or through a 3-in-1 account.

What is the maximum I can bid through UPI?

₹5 lakh per application. Bids above ₹2 lakh count in the non-institutional category.

Can I apply more than once with the same PAN?

No. Multiple applications under one PAN are liable to be rejected. One form can carry bids at up to three price levels, and that is not treated as multiple bids.

What does bidding at the cut-off price mean?

You agree to pay the final issue price, whatever it is within the band. Only retail investors, employees and retail shareholders can use it, and the upper end of the band is blocked.

Till what time can I approve the UPI mandate?

Until 5 pm on the issue’s closing day. Requests left unapproved after that lapse.

Can I cancel my IPO application?

Retail investors can withdraw until the issue closes, through the same broker or bank. Non-institutional and institutional investors cannot withdraw.

Sources

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