How to Apply for an IPO Online and Offline?

Initial Public Offerings (IPOs) enable companies to offer shares to the public as part of their transition to being listed on recognised stock exchanges. Participation in IPOs has increased across investor categories, making it relevant to understand the procedural aspects of applying through available channels.

This article explains the IPO application process in India, outlines online and offline application methods, describes procedural requirements, and covers commonly used mechanisms such as ASBA and UPI. The focus remains on process clarity and regulatory alignment rather than investment outcomes.

What is an IPO

An Initial Public Offering (IPO) refers to the issuance of equity shares by a company to the public for the first time. During the subscription window, eligible investors may submit applications in line with category-specific limits and regulatory requirements. 

The IPO process involves regulatory filings, disclosure of offer documents, price determination through fixed-price or book-building mechanisms, and application processing under SEBI’s Issue of Capital and Disclosure Requirements (ICDR) framework prior to listing.

Investor Categories in IPOs

SEBI classifies IPO applicants into:

• Retail Individual Investors (RIIs): Investment of up to ₹2 Lakhs.

• High Net-worth Individuals (HNIs): Non-Institutional Investors (NIIs) applying for amounts above ₹2 Lakhs.

• Qualified Institutional Buyers (QIBs): Includes mutual funds, banks, etc.

IPO applications require certain prerequisites to be in place, as prescribed under SEBI and banking regulations:

• PAN Card: 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: 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:

1. Through A Broker’s Online Platform

Most discount and full-service brokers offer IPO application services via mobile apps and websites.

Steps:

1. Log in to the broker platform.

2. Navigate to the IPO section.

3. Select the IPO  to apply for.

4. Enter bid details, quantity, and UPI ID.

5. Accept the UPI mandate in the UPI app to block funds.

2. Using Net Banking via ASBA

Self-Certified Syndicate Banks (SCSBs) allow IPO applications through internet banking.

Steps:

1. Log in to the bank’s net banking portal.

2. Go to the IPO or ASBA section.

3. Fill in PAN, Demat account, bid quantity, and price.

4. Submit to block funds—no need to transfer upfront.

Funds are debited only upon successful allotment. Interest continues to accrue on unutilised funds.

3. Through UPI-Linked Mobile Apps

This method combines broker platforms with UPI-based fund blocking.

• After submitting the application, authorise the mandate in the UPI app (e.g., PhonePe, BHIM).

Ensure that the UPI ID is linked to the ASBA-enabled bank account.

IPO applications using UPI are available to Retail Individual Investors through SEBI-regulated broker platforms and the ASBA framework. The investor submits the IPO application online by entering details such as PAN, demat account number, bid quantity, price (or cut-off, where applicable), and a UPI ID linked to an ASBA-enabled bank account.

After submission, a UPI mandate request is sent to the investor’s UPI app to authorise blocking of funds. The application amount remains blocked in the bank account until allotment is finalised. Upon allotment, funds for allotted shares are debited and the remaining amount is unblocked. The process operates under regulations prescribed by Securities and Exchange Board of India.

While online methods are increasingly popular, offline applications are still available.

1. Obtain the Physical IPO Application Form

Forms can be downloaded from exchange websites or collected from:

• Designated bank branches

• Registered brokers

2. Fill Out the Form Carefully

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.

3. Submit at a Designated Intermediary

Submit the filled form at:

• A registered broker

• Self-Certified Syndicate Bank (SCSB)

• Designated collection centres
   

Collect an acknowledgment slip after submission.

The following concepts are commonly referenced in the IPO application process:

Cut-off Price vs. Bid Price

• 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

Lot Size

Each IPO has a minimum number of shares to apply for—this is the lot size.

ASBA and Fund Blocking

• ASBA blocks funds in the linked bank account until share allotment. 

• Unallotted funds released without charges upon non-allotment.

Allotment and Refund

• Oversubscription triggers lottery-based allotment. 

• Refunds/unblocking processed within T+4 to T+6 working days post-allotment as per SEBI timelines.

Investment in IPO shares takes place during the subscription period announced by the issuing company and stock exchanges. Applications are submitted through SEBI-approved mechanisms such as ASBA (Application Supported by Blocked Amount) or UPI-based processes, depending on the investor category and channel used.

Applicants place bids within the disclosed price band and specified lot sizes using a registered trading and demat account. Funds remain blocked in the linked bank account until the allotment process is completed. Shares, if allotted, are credited to the demat account, while unutilised funds are released in cases of partial or no allotment.

The entire process is governed by SEBI’s Issue of Capital and Disclosure Requirements (ICDR) Regulations and executed through recognised stock exchanges and authorised intermediaries.

IPO applications may be submitted through online or offline channels, each with distinct procedural characteristics.

Online Channel Characteristics

• Instant confirmation of application

• No paperwork required

• 24/7 access via mobile or desktop

Offline Channel Characteristics

• Available for applicants without digital access

• Availability of in-person assistance

• Can be used by investors without UPI setup

Common Mistakes to Avoid

Certain application-related errors may result in rejection or non-processing of IPO applications, including:

• 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

Eligibility to apply for an IPO in India is defined under the regulatory framework prescribed by Securities and Exchange Board of India. An applicant must have a valid Permanent Account Number (PAN), as PAN-based verification is mandatory for IPO participation. A demat account is required to hold allotted shares in electronic form, along with a bank account enabled for ASBA or UPI-based fund blocking.

Eligibility is also linked to investor categories. Retail Individual Investors can apply up to ₹2 lakh per IPO, while applications above this limit fall under the Non-Institutional Investor category. Institutional participation is limited to entities classified as Qualified Institutional Buyers. Applications must be submitted under a single category per PAN, and compliance with category-specific limits is required for the application to remain valid.

Online IPO application offers a digital route for submitting bids through broker platforms, bank portals, or UPI-enabled systems. The key benefits associated with this method include:

• Paperless submission: Applications are completed electronically without physical forms or manual documentation.
  

• Integrated fund blocking: Funds are blocked directly through ASBA or UPI and remain in the bank account until allotment finalisation.
  

• Real-time confirmation: Application status and mandate approvals are recorded instantly through digital systems.
  

• Centralised access: Multiple IPOs can be accessed and applied for through a single broker or banking interface.
  

• Standardised processing: Online applications follow uniform exchange and SEBI-prescribed workflows, reducing processing inconsistencies.
   

These features reflect how online IPO applications are structured within India’s regulated primary market framework.

IPO applications in India follow a structured process supported by both digital and physical submission channels. Online platforms and offline mechanisms operate under the same regulatory framework, with defined requirements for eligibility, documentation, and fund blocking.

Understanding procedural differences across application methods and investor categories provides clarity on how IPO participation is administered within 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.