Do Not Call
An in-depth investor guide to applying for Initial Public Offerings in India, using both digital and traditional routes.
Initial Public Offerings (IPOs) are a gateway for investors to become shareholders in companies making their stock market debut. With increasing participation from retail investors, understanding how to apply for an IPO—whether online or offline—is key to ensuring a smooth investment experience. This guide provides a step-by-step breakdown of both methods, outlines necessary prerequisites, and highlights essential investor considerations. Whether you're a new investor or looking to expand your portfolio, this article aims to clarify the IPO application journey in India.
An IPO marks the transition of a private company into a publicly listed one. Investors can subscribe to IPOs during a specific window before the stock is listed and starts trading on recognised stock exchanges such as BSE or NSE.
An Initial Public Offering (IPO) is when a company offers its shares to the public for the first time. The process involves regulatory approvals, public disclosures, pricing mechanisms, and a subscription period during which investors can apply for shares.
SEBI classifies IPO applicants into:
Retail Individual Investors (RIIs): Investment of up to ₹2 Lakhs.
High Net-worth Individuals (HNIs): Investment above ₹2 Lakhs.
Qualified Institutional Buyers (QIBs): Includes mutual funds, banks, etc.
Before you begin, ensure the following essentials are in place:
PAN Card: Mandatory for identity verification.
Demat Account: To receive shares in electronic form.
Bank Account: Linked for fund blocking via ASBA or UPI.
UPI ID: Required for online applications through brokers.
ASBA-Enabled Bank Account: Necessary for both online and offline applications.
Online IPO applications are widely used due to their convenience and real-time confirmation. There are three primary channels:
Most discount and full-service brokers offer IPO application services via mobile apps and websites.
Steps:
Log in to the broker platform.
Navigate to the IPO section.
Select the IPO you want to apply for.
Enter bid details, quantity, and UPI ID.
Accept the UPI mandate in your UPI app to block funds.
Tip: Always double-check the cut-off price selection if you are unsure of a bid price.
Self-Certified Syndicate Banks (SCSBs) allow IPO applications through internet banking.
Steps:
Log in to your bank’s net banking portal.
Go to the IPO or ASBA section.
Fill in PAN, Demat account, bid quantity, and price.
Submit to block funds—no need to transfer upfront.
Funds are debited only upon successful allotment. Interest continues to accrue on unutilised funds.
This method combines broker platforms with UPI-based fund blocking.
After submitting the application, authorise the mandate in your UPI app (e.g., PhonePe, BHIM).
Ensure that the UPI ID is linked to your ASBA-enabled bank account.
While online methods are increasingly popular, offline applications are still available.
Forms can be downloaded from exchange websites or collected from:
Designated bank branches
Registered brokers
Details needed:
Name, PAN, and mobile number
Demat account number
Bank details and category (Retail/HNI)
Number of lots and bid price
Ensure all entries are accurate and legible to avoid rejection.
Submit the filled form at:
A registered broker
Self-Certified Syndicate Bank (SCSB)
Designated collection centres
Collect an acknowledgment slip after submission.
Here are some key terms and factors to understand before applying for an IPO:
Cut-off Price: Applicable to retail investors; indicates acceptance of the final issue price set by the company.
Bid Price: A specific price chosen within the disclosed price band.
Formula to calculate application value:
Application Value = Lot Size × Bid Price × Number of Lots
Each IPO has a minimum number of shares you can apply for—this is the lot size. You can only apply in multiples of this number.
ASBA ensures that your funds remain in your account until allotment.
If you don’t receive an allotment, funds are released without any charges.
In case of oversubscription, allotment is done via a lottery system.
Refunds or unblocking usually happen within 3–5 working days post allotment.
Applying for an IPO offers several advantages whether you choose the online or offline route:
Instant confirmation of application
No paperwork required
24/7 access via mobile or desktop
Suitable for non-tech-savvy individuals
Availability of in-person assistance
Can be used by investors without UPI setup
Being aware of these common errors could help ensure a smooth IPO application process:
Providing incorrect UPI ID or Demat details
Delaying UPI mandate approval
Applying multiple times using the same PAN (may lead to rejection)
Not reading the RHP or IPO terms before applying
Applying for an IPO is a streamlined process, made easier with the availability of both online and offline channels. Investors today have multiple access points—from mobile apps and broker platforms to traditional paper-based forms. Understanding the process, requirements, and differences between these methods is essential to ensure successful participation in the primary market.
This content is for educational purposes only and the same should not be construed as investment advice. Bajaj Finserv Direct Limited shall not be liable or responsible for any investment decision that you may take based on this content.
Sources
SEBI – IPO Guidelines
NSE – IPO Process
BSE India – Public Issues
Bajaj Finserv – How to Apply for IPO
Kotak Securities – IPO Application Guide
No. A Demat account is mandatory to receive shares in electronic form.
ASBA allows banks to block funds in your account for IPO applications. Funds are debited only if shares are allotted.
Your application will be considered incomplete and will not be processed.
Yes, cancellations or modifications can be done during the subscription window via the same platform you used to apply.
You can check on the registrar’s website or receive notification from your broker platform.
