To apply for an Indian IPO, submit a bid through an authorised intermediary, provide your PAN and demat details, choose the permitted quantity and price or cut-off option, and authorise a block on the application money. Retail investors can use an eligible UPI app to approve a mandate, or apply through an ASBA-enabled Self-Certified Syndicate Bank (SCSB).
Neither route normally transfers the full bid value immediately. The money is blocked first; after allotment, only the amount due for allotted shares is debited and the unused balance is released. If there is no allotment, the blocked amount is released.
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What you need before opening an IPO application
An IPO application is tied to the applicant’s identity, demat account and bank account. Have these details ready before you begin:
- PAN: Enter the PAN belonging to the person making the application.
- Demat details: Use the demat account in which any allotted shares are to be credited.
- Bank account: The account must have enough clear funds for the entire application amount when the block is requested.
- Bid information: Check the issue’s lot size, the quantity you may enter, and whether the issue permits a fixed price, a price range or a cut-off bid for your category.
- Issue documents: Keep the prospectus or registrar notice open for the opening and closing dates, category rules, permitted intermediaries and the exact mandate or ASBA deadlines.
The intermediary may be a permitted syndicate member, a registered stockbroker, the issue’s registrar and transfer agent, or a depository participant. The available application screen and the fields it requests can vary by intermediary and by issue.
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How the money block works
UPI and ASBA are blocking mechanisms rather than advance payments. A successful application places the required amount on hold so it cannot be spent elsewhere, while the funds remain in the linked bank account until the allotment process is completed.
Suppose an illustrative bid is 120 shares at ₹350, for a total application amount of ₹42,000. If 80 shares are allotted, ₹28,000 is debited and the remaining ₹14,000 is released. If no shares are allotted, the full blocked amount is released. The figures in this example are only arithmetic; your issue’s price, quantity and allotment result determine the actual amounts.
Applying through UPI: step-by-step
1. Start the application with an authorised channel
Open the IPO application with a permitted syndicate member, registered stockbroker, registrar and transfer agent, or depository participant. Select the correct issue and applicant category. Read the issue’s dates and bid rules before entering any amount.
2. Enter the bid and identity details
Enter the permitted quantity and either the selected price or the cut-off choice, depending on what the issue allows. Add the applicant’s PAN, demat account details and the applicant’s own eligible UPI ID. The UPI ID must be linked to the bank account that will provide the blocked funds.
Review every character before submission. A mismatch between the application, PAN, demat records, bank account or UPI details can prevent the application from being considered.
3. Submit the bid
Submit the completed form through the intermediary. Submission alone does not approve the payment block. The sponsor or escrow bank sends a block mandate request to the UPI app associated with the UPI ID in the application.
4. Find the mandate in the UPI app
Open the UPI app and locate the IPO mandate request. Check the issue name, applicant details, amount and validity information against your application. Use only the app and UPI handle shown on the current eligible lists for IPO applications.
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5. Authorise with your UPI PIN
Approve the mandate with the UPI PIN before the IPO’s stated deadline. The application amount is then blocked in the linked bank account. A pending request is not the same as an authorised block, so confirm the status in the app and, where available, in the intermediary’s application screen.
6. Track the result and release of funds
After allotment, the amount required for the allotted shares is debited and the remainder is unblocked. If there is no allotment, the blocked amount is released. Keep the application number and mandate status until the block has been fully settled.
UPI limit and eligibility rules
SEBI Investor’s current guidance accessed in 2026 sets a limit of ₹5 lakh per transaction for UPI IPO applications by retail individual investors. This is a per-transaction ceiling for the retail category; the issue’s own category definitions and intermediary rules still apply.
Use only UPI applications and handles appearing on SEBI’s eligible lists. A third-party UPI ID or a third-party bank account will not be considered for allocation. In practical terms, the applicant, the UPI ID and the linked bank account must belong together as required by the intermediary and depository records.
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1. Choose an ASBA-enabled SCSB
ASBA applications are made through a Self-Certified Syndicate Bank, known as an SCSB. Use the bank’s designated branch or its online ASBA facility, if offered for the issue. The issue documents identify the banks and channels permitted for that application.
2. Open the ASBA form or online application
Select the IPO and enter the bid quantity, permitted price or cut-off instruction, PAN and demat account details. Add the bank-account information requested by the SCSB. Check that the account is the applicant’s eligible account and has enough clear funds for the full application amount.
3. Authorise the block
Submit the form through the designated branch or bank portal and authorise the SCSB to block the application amount. The money remains in the bank account rather than being sent away, and the blocked amount continues to earn interest.
4. Keep the acknowledgement
Save the branch acknowledgement or online reference number. It is the record to use when checking the application with the bank, intermediary or registrar.
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5. Wait for allotment and debit
On allotment, the SCSB debits the amount due for the shares allotted. Any unneeded amount is released. With no allotment, the blocked amount is released without a separate refund process.
UPI or ASBA: which route fits?
| Comparison point | UPI | ASBA |
|---|---|---|
| Main action | Approve a block mandate in an eligible UPI app with a UPI PIN. | Authorise a bank-account block through an ASBA-enabled SCSB. |
| How funds are handled | The linked account is blocked first; only the allotted-share amount is debited. | The application amount is blocked in the bank account; the allotted-share amount is debited later. |
| Eligibility dependency | An eligible bank, app and UPI handle are required, along with the retail transaction ceiling set by SEBI. | An eligible SCSB and its issue-designated branch or online facility are required. |
| What can delay the application | A wrong UPI ID, an unapproved or expired mandate, an ineligible handle or insufficient funds. | Incorrect bank or demat details, an unavailable ASBA channel or an unauthorised block. |
| Operational fit | Useful when you want a mobile mandate workflow and meet the UPI eligibility conditions. | Useful when you prefer a bank-led process or need a route outside the UPI retail ceiling. |
This is a comparison of application mechanics, not a recommendation about whether to buy any particular issue.
Checks that prevent rejection
- Match the records: The applicant name, PAN, demat details, bank account and UPI ID must be entered exactly as required by the intermediary and the depository records.
- Use your own payment identity: Do not use another person’s UPI ID or bank account for a retail UPI application.
- Confirm eligibility: Check that the bank, UPI app and UPI handle appear on the current eligible lists, or that the bank is an SCSB for the ASBA route.
- Keep the full amount available: The block is requested for the complete application amount, not merely for the number of shares you expect to receive.
- Approve on time: A submitted form still needs a successful UPI mandate authorisation, or a completed ASBA block, before the issue’s stated deadline.
- Check price instructions: Use the issue’s permitted price or cut-off option and the correct lot size for your category.
- Save references: Retain the application number, bank or intermediary acknowledgement and UPI mandate status until the allotment and release are complete.
What happens after you submit
When the UPI mandate is approved
The linked bank account shows the application amount as blocked. The application then proceeds to the issue’s allotment process, subject to the issue and intermediary rules. Approval of the block is not a promise of allotment.
When ASBA is authorised
The SCSB places the requested hold on the bank account. The money stays in that account while the issue processes bids, and the bank later debits only the amount corresponding to shares allotted.
When shares are allotted
The amount due for the allotted quantity is debited. Any balance that was blocked for unallotted shares is released. The shares are credited to the demat account specified in the application, subject to the issue’s processing.
When there is no allotment
The entire blocked amount is released. Under ASBA, no separate refund application is required for a non-allotment because the funds were held in the account rather than transferred as a payment.
Independent reader supportYour contribution helps us test, update, and keep practical guides available for everyone.Troubleshooting common problems
No UPI mandate appears
First verify that the UPI ID entered in the IPO form is the applicant’s own ID and is linked to the intended bank account. Check the UPI app’s mandate or collect-request area rather than relying only on a notification. If the request still does not appear, contact the intermediary promptly and use the issue’s published deadline as the cut-off for escalation.
The mandate is pending, declined or expired
A pending, declined or expired request has not created a successful block. Confirm that sufficient clear funds are available, review the request details and check whether the issue still accepts mandate authorisation. Contact the intermediary or registrar before the deadline; do not assume that the original bid is valid merely because the form was submitted.
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Ensure that the full application amount is available after accounting for existing holds or other debits. Add funds before the mandate or ASBA authorisation is attempted again, while staying within the issue’s submission window.
Details do not match
Name, PAN, demat, bank and UPI mismatches can make an application ineligible. Compare the entries with the applicant’s official account records and ask the intermediary whether its correction procedure is available before the issue closes. A third-party payment identity cannot be fixed by simply approving the request.
The blocked amount remains after the result
Keep the application number and allotment information, then ask the intermediary, registrar or bank to trace the block. Give them the exact mandate or ASBA reference and the account statement showing the hold. The responsible party depends on whether the unresolved status is at the UPI, intermediary, registrar or bank stage.
The preferred ASBA bank is not available
Use an SCSB and channel listed for that particular issue. Eligibility is issue-specific, so a bank that supports ASBA generally may not be the designated channel for every IPO.
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Can you apply without UPI?
Yes. ASBA provides a non-UPI route for an eligible retail investor. Apply through an SCSB’s designated branch or online ASBA facility, enter the same core bid, PAN and demat information, and authorise the bank to block the amount. The bank keeps the funds in the account until allotment, then debits the amount due or releases the block when appropriate.
How to choose between the two methods
Choose UPI when the workflow suits you
UPI can be the practical choice if you have an eligible app and handle, the linked account belongs to you, the application fits the retail ceiling, and you can monitor and approve a mandate before the deadline. Its critical action is the in-app PIN authorisation after the bid is submitted.
Choose ASBA when a bank-led block is preferable
ASBA can be the practical choice if you want the bank to handle the block directly, if your application is outside the UPI retail ceiling, or if the issue’s permitted SCSB channel is more convenient than a UPI mandate. Its critical action is completing the bank’s ASBA authorisation correctly and on time.
Final pre-submission checklist
- Read the issue’s prospectus or registrar notice for dates, category, lot size, price rules and permitted channels.
- Confirm the PAN and demat account belong to the applicant.
- For UPI, verify the applicant’s own eligible UPI ID, linked bank account and app handle.
- For ASBA, verify that the selected bank is an SCSB and that the chosen branch or online facility is designated for the issue.
- Calculate the full application amount and leave that amount available as clear funds.
- Submit the bid through the authorised intermediary.
- For UPI, approve the mandate with the UPI PIN before the stated deadline; for ASBA, complete the bank authorisation and retain the acknowledgement.
- Save the application number and monitor the block, allotment debit and release.
Rules and dates to recheck for every IPO
Eligible banks, UPI apps and handles, regulatory ceilings, intermediary arrangements and issue timetables can change. SEBI’s current eligible lists and the individual IPO’s official documents control the application. Use the ₹5 lakh retail UPI ceiling stated in the current SEBI Investor guidance accessed in 2026 only in that context, and verify any later update before submitting a new application.
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