Five steps to apply
- Open a demat and trading accountYou need a demat account linked to your PAN and a bank account that supports UPI or ASBA.
- Pick the IPO and your categoryChoose an IPO during its bidding window. Apply as a retail investor in a mainboard IPO if your total bid is up to ₹2 lakh.
- Enter lots and priceBid in multiples of the lot size. Ticking cut-off means you accept the final issue price.
- Approve the UPI mandateApprove the mandate in your UPI app before 5 pm on the closing day. The money is blocked in your account, not debited.
- Check allotment and listingAllotment is usually out the working day after the issue closes. Shares reach your demat account before listing day.
Which category should you apply in?
In a mainboard IPO, individuals bidding up to ₹2 lakh apply as retail investors. Bids above ₹2 lakh go into the non-institutional (NII) category, split into small NII (₹2 to 10 lakh) and big NII (above ₹10 lakh). At least 35% of a typical mainboard offer is set aside for retail investors.
In an SME IPO, individual investors apply for the minimum application size, which is usually above ₹2 lakh. Our SME vs mainboard guide explains the difference.
Bid at cut-off or at a price?
Retail investors can tick cut-off, which means you accept whatever final price is set within the band. Your bank blocks money at the upper end of the band. Read more about cut-off price.
UPI or ASBA?
UPI is the usual route in broker apps and works for bids up to ₹5 lakh. ASBA through net banking works for any amount. Either way the money is blocked, not debited, until allotment.
After you apply
Allotment is usually final on the working day after the issue closes. Shares reach your demat account the next day, and listing follows on the third working day after closing under SEBI's T+3 timeline. Check allotment status for any IPO, or see brokers you can apply through.
Sources: SEBI ICDR Regulations 2018 and SEBI circulars on UPI bidding and the T+3 listing timeline.
Frequently asked questions
Can I apply for an IPO without a demat account?
No. Shares are credited only to a demat account, so you need one linked to your PAN before you bid.
Is money debited when I apply for an IPO?
No. The bid amount is blocked in your bank account through UPI or ASBA. It is debited only for the shares you are allotted, and the rest is released.
What is the last time to apply for an IPO?
Brokers usually stop taking bids in the afternoon of the closing day, and the UPI mandate must be approved by 5 pm. Apply early on the last day to be safe.
Can I apply in more than one category?
An individual can bid as a retail investor or as an NII, not both, from the same PAN. Some IPOs also have a shareholder or employee quota you may be eligible for in addition.
Does applying with more lots improve my chances as a retail investor?
In an oversubscribed mainboard IPO, retail shares are usually allotted by lottery, one minimum lot per winning application. Applying for more lots does not add more lottery tickets.