How to Apply for an IPO Online: UPI, ASBA Process Step by Step

What you need before Day 1

Three things: a demat + trading account (any SEBI-registered broker), a UPI ID linked to your own bank account (third-party UPI IDs are rejected), and a PAN. Applications close at 5 PM on the last day for most brokers — UPI mandates can take an hour to arrive, so never wait for the final hour.

ASBA in plain words

ASBA (Application Supported by Blocked Amount) means your money never leaves your account while you wait. You approve a UPI mandate blocking the bid amount; the bank holds it, you keep earning interest on it, and only allotted shares get debited. No allotment, no debit — the block simply lifts. Applying is free.

The five steps

1. Pick the IPO in your broker app and choose quantity in lots (lot size is fixed per IPO).
2. Bid at cut-off price unless you have a strong reason to pick a lower price — cut-off keeps you eligible at the final discovered price.
3. Enter your own UPI ID and submit before the cut-off time.
4. Approve the mandate in your UPI app (GPay/PhonePe/Paytm) — this step completes the application; skipping it is the #1 rejection reason.
5. On allotment day, check the registrar portal; on listing day, decide with a plan, not excitement.

Why applications get rejected

• UPI mandate never approved (or approved after the deadline).
• Name mismatch between PAN, bank account and demat account.
• Multiple applications on one PAN — all get rejected.
• Bid below the final discovered price (avoidable with cut-off bidding).