What you need before applying
You need three things: (1) an active demat + trading account with a SEBI-registered broker — Zerodha, Upstox, Angel One, Groww, 5paisa, ICICI Direct, or any other; (2) a UPI ID linked to a SEBI-approved bank; (3) sufficient balance in that bank account for the bid amount. The funds are blocked under ASBA (Application Supported by Blocked Amount) — they are NOT debited until allotment is finalized.
Step 1: Open your broker app
Open Zerodha Kite, Upstox, Angel One, Groww, 5paisa, or your chosen broker. Navigate to the IPO section — most apps have a dedicated tab labeled "IPO" or hidden under a "Investments" menu. The IPO module shows currently open issues (subscription window active) and upcoming issues you can pre-apply for.
Step 2: Select the IPO
Pick the IPO you want to apply for. The detail view shows price band (e.g. ₹290–₹310), lot size (e.g. 47 shares), and minimum investment (lot size × upper price = ₹14,570 in this example). You'll also see the close date and the subscription progress across categories.
Step 3: Choose lots and bid price
Choose your application category — Retail (RII, ≤₹2 lakh), Non-Institutional / HNI (₹2-10 lakh = NII Small, >₹10 lakh = NII Big), or Employee / Shareholder if eligible. Choose the number of lots — for retail, one lot is the minimum. Choose the bid price — bidding at cut-off (the upper band) means your bid stays valid no matter the final price, which is recommended for retail unless you have a specific view.
Step 4: Enter UPI ID and approve mandate
Submit your UPI ID (e.g. yourname@oksbi). The broker triggers a UPI mandate request which appears in your UPI app (PhonePe, Google Pay, BHIM, Paytm). You must approve the mandate within the deadline (usually 5 PM on the issue close day) — failure to approve means your bid is rejected. After approval, the bid amount is blocked in your bank — it shows as "hold" but is not debited.
Step 5: Wait for allotment
Allotment is announced 3-5 working days after the issue closes. You can check status on the registrar's website (Link Intime, KFin, Bigshare, Cameo) using your PAN, or via your broker app under "IPO orders". If allotted, the bid amount is debited and the shares are credited to your demat. If not allotted, the block is released within 24-48 hours.
Step 6: Listing day
The shares list on the exchange (NSE / BSE) on the announced listing date — usually T+6 from issue close. Listing typically happens at 10:00 AM IST. You can hold the shares, sell them on the listing day to book the listing gain (if any), or buy more from the market. Listing gains are taxable as short-term capital gains.
What is the cut-off price?
Cut-off price is the upper end of the price band. By bidding at cut-off, you're saying "I'll pay whatever the final issue price turns out to be, up to and including the upper band". This means your bid stays valid regardless of price discovery. For retail investors, bidding at cut-off is recommended because rejected bids at lower prices is one of the biggest reasons retail applications fail validation.
Common errors that get your bid rejected
1. UPI mandate not approved within deadline — most common. 2. Insufficient balance in linked bank when mandate is triggered. 3. PAN mismatch between broker and demat. 4. Demat KYC status not active. 5. Application beyond category limit (retail can't bid >₹2 lakh, HNI can't bid <₹2 lakh). 6. Multiple applications from the same PAN — SEBI rules allow only one per PAN per IPO. 7. Bid below cut-off when issue is fully subscribed.
Multiple family member demats for higher chances
On heavily oversubscribed IPOs, allotment becomes a lottery and applying from one PAN means one ticket. Spouse, parents, and adult children can each open a demat in their own name and apply separately if you have the funds across multiple bank accounts. This is the single most effective legal way to increase allotment probability. SEBI rules require each PAN's bid to come from that person's own bank — never apply from one bank for multiple PANs.
Tax implications on listing gains
If you sell allotted shares within 12 months of listing, gains are taxed as Short-Term Capital Gains (STCG) at 15% on the realized profit (with a small change post Budget 2024 — verify current rate). If you hold beyond 12 months, gains are Long-Term Capital Gains (LTCG) at 10% above ₹1 lakh / year. Brokerage, GST, and STT also apply. Most retail investors selling on listing day pay STCG.
Open one in 5 minutes via Upstox, Angel One, or Groww and start applying for upcoming IPOs.
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