How to Apply for an IPO via UPI in 2025 — Step by Step

Since 2019, SEBI has made UPI-based ASBA (Application Supported by Blocked Amount) the primary method for retail investors to apply for IPOs in India. The process is fast, digital, and your money stays in your bank account until allotment — only blocked, not debited.

What You Need Before Applying

• A Demat account (with any SEBI-registered broker)
• A UPI-enabled bank account (Paytm, Google Pay, PhonePe, BHIM, etc.)
• Your PAN linked to your Demat account

Step-by-Step: Applying via Broker App

1. Open your broker app (Zerodha, Groww, Upstox, Angel One, etc.)
2. Go to IPO section — usually under "Markets" or "Invest"
3. Select the IPO you want to apply for
4. Choose number of lots — minimum 1 lot for retail
5. Enter bid price — select "Cut-off price" to apply at the upper band
6. Enter your UPI ID (e.g., name@okicici)
7. Submit application
8. Approve mandate in your UPI app within the deadline

Cut-Off Price vs. Specific Price

Always select "Cut-off price" unless you have a specific reason to bid lower. Cut-off means you accept whatever final price the company decides within the price band. Bidding below cut-off price increases the risk of rejection.

What Happens After Application?

Your bank account shows the bid amount as "blocked" — not debited. After the IPO closes, allotment is done (typically T+6 days). If you get allotment, the amount is debited and shares are credited to your Demat. If not, the block is released immediately.

Common Mistakes to Avoid

• Wrong UPI ID: Double-check before submitting — a typo means your application is rejected
• Insufficient balance: Ensure your account has at least the full bid amount available
• Multiple applications: Applying from the same PAN multiple times leads to rejection of all applications
• Missing mandate: The most common reason for rejection — approve the UPI mandate promptly