Introduction:
Applying for an IPO is one of the first major steps you take as a stock market investor. Even though the process is simple, most new investors lose money not because of the application process, but because they don’t understand how to apply correctly, when to apply, and how much to apply.
This guide is more than just a “how-to”—it is a complete execution and strategy guide that covers every stage of the IPO application process:
- How to apply (using UPI, Zerodha, Groww, ASBA)
- What decisions matter (quantity, cut-off price)
- What happens after applying
- Common mistakes and how to avoid them
1. How to Apply for IPO Using UPI (Step-by-Step Guide) :
UPI (Unified Payments Interface) is currently the most widely used method for IPO applications in India because of its simplicity and speed.
What You Need Before Applying:
- An active Demat account (to receive shares)
- A trading account (with a broker like Zerodha, Groww, etc.)
- A valid UPI ID linked to your bank account
- A sufficient bank balance
Step-by-Step IPO Application Using UPI :
Step 1: Login to Your Broker Platform
Open your broker app (Zerodha, Groww, Upstox, etc.)
Step 2: Navigate to IPO Section :
There will be a dedicated section with:
- Current IPOs
- Upcoming IPOs
Step 3: Select the IPO You Want :
Click on the IPO and review:
- Price band
- Lot size
- Company details
Step 4: Enter Bid Details :
You’ll need to fill:
- Quantity (in lots)
- Bid price OR Cut-off price
- UPI ID
Always double-check your UPI ID—this is where the mandate request will come.
Step 5: Submit Application :
Once submitted, your broker sends the request to the exchange.
Step 6: Approve UPI Mandate :
- Open your UPI app (Google Pay / PhonePe / BHIM)
- You’ll see a “Mandate Request”
- Approve it
Important Concept: Blocked Amount :
- Money is not deducted immediately
- It is only blocked in your bank account
- Deduction happens only if you get allotment
Critical Mistake to Avoid :
If you fail to approve the UPI mandate before the deadline, your IPO application is automatically rejected—even if everything else is correct.
2. How to Apply IPO in Zerodha (Complete Guide) :
Zerodha is one of the most widely used brokers in India and provides IPO applications through its Console platform.
Step-by-Step Process in Zerodha :
Step 1: Login to Zerodha Console :
console.zerodha.com
Step 2: Go to IPO Section :
Navigate: Portfolio → IPO
Step 3: Select the IPO :
Click on the IPO you want to apply for.
Step 4: Fill Application Details :
- Enter number of lots
- Select Cut-off price (recommended)
- Enter your UPI ID
Step 5: Submit Applicationn :
Confirm all details carefully.
Step 6: Approve UPI Mandate :
Same as standard UPI process.
Advanced Tip (Important):
Zerodha does not allow last-minute modifications easily, so:
- Apply early
- Avoid waiting till the last day
3. How to Apply IPO in Groww App (Latest Method) :
Groww is designed for beginners and offers a very clean and simplified IPO process.
Step-by-Step Process in Groww :
Step 1: Open Groww App :
Login to your account.
Step 2: Go to IPO Section :
Available directly on the homepage or under “Stocks”.
Step 3: Select IPO :
Step 4: Enter Application Details :
- Choose number of lots
- Select price (preferably cut-off)
- Enter UPI ID
Step 5: Submit & Approve Mandate :
Why Beginners Prefer Groww:
- Simple interface
- Easy tracking of IPO status
- Less confusion in UI compared to advanced brokers
4. ASBA vs UPI: Best Way to Apply for IPO :
Understanding this comparison helps you choose the right application method.
What is ASBA?
ASBA (Application Supported by Blocked Amount) is a system where:
- You apply via bank
- Funds are blocked directly in your bank account
Detailed Comparison:
| Feature | UPI | ASBA |
|---|---|---|
| Ease of Use | Very easy | Moderate |
| Speed | Fast | Medium |
| User Type | Retail investors | Large investors |
| Mandate Approval | Required | Not required |
| Interface | Broker apps | Bank net banking |
Which One Should You Use?
- Beginners → Use UPI
- High-value investors → Can use ASBA
Practically, UPI dominates retail IPO applications today
5. How to Check IPO Allotment Status Online :
After an IPO closes, the most awaited step is allotment.
When is Allotment Announced?
Usually 2–3 days after the IPO closes
Methods to Check Allotment:
Method 1: Registrar Website
Visit the registrar (Link Intime / KFintech)
Enter:
- PAN number
- Application number
- DP ID
Method 2: Broker App
Zerodha or Groww shows the allotment status directly.
Method 3: NSE/BSE Website
You can also check via exchange websites.
Possible Results:
- ✔ Allotted → Shares will be credited
- ✘ Not Allotted → Money will be released
6. How to Cancel IPO Application (Step-by-Step) :
You can cancel your IPO application only before the issue closes.
Steps:
- O pen the broker’s IPO section
- F ind your application
- C lick Cancel
- C onfirm
After Cancellation:
- Mandate is revoked
- Funds get unblocked
Important Note:
Once the IPO is closed → No cancellation is possible
7. How Many Lots Should You Apply for IPO?
Basic Rule:
Retail investors can apply up to ₹2 lakh per IPO
8. What Happens After You Apply for IPO?
Understanding this timeline removes confusion.
Full IPO Lifecycle After Application:
Day 1–3: IPO Open
You submit application
Day 4: IPO Closes
Day 5–6: Allotment Finalization
Day 6–7: Fund Movement
- If allotted → money deducted
- If not → funds unblocked
Day 7–8: Shares Credited
Shares appear in Demat account
Day 8–9: Listing Day
Stock starts trading
What You Should Do After Listing:
- If listing gain → decide exit or hold
- If listing loss → evaluate fundamentals