How to Apply for an IPO?
A complete step-by-step guide to applying for an IPO in India — from opening your Demat account to receiving shares on listing day.
What You Will Learn
- ✓ How to open a Demat account
- ✓ What ASBA means and how it works
- ✓ How to place a bid via UPI or broker
- ✓ How allotment is determined
- ✓ What to do on listing day
- ✓ Common mistakes to avoid
6 Steps to Apply for an IPO
Open a Demat & Trading Account
To apply for an IPO in India, you must have a Demat account linked to a trading account. Popular brokers include Zerodha, Groww, Upstox, and Angel One. The process is fully online and takes 10–15 minutes.
Ensure your PAN card and bank account are linked to your Demat account.
Ensure Sufficient Funds (ASBA)
India uses the ASBA (Application Supported by Blocked Amount) system. Your bid amount is blocked in your bank account — not debited — until allotment. You can apply through your net banking UPI or directly via your broker app.
Funds are only debited if you receive an allotment. Otherwise, they are unblocked within 6 business days.
Check the IPO Details
Before applying, review the IPO's Price Band, Lot Size, Issue Dates, GMP (Grey Market Premium), Subscription Status, and Company Fundamentals. The IPO prospectus (DRHP) is filed with SEBI and available publicly.
Always read the 'Objects of the Issue' section to understand how proceeds will be used.
Place Your Bid
Log in to your broker app or net banking → Go to IPO section → Select the IPO → Choose category (Retail / HNI) → Enter lot quantity → Enter bid price (you can bid at cut-off price) → Submit using UPI or ASBA.
Retail investors can apply for up to ₹2 lakh worth of shares. Applying at the cut-off price improves allotment chances.
Wait for Allotment
After the IPO closes, SEBI mandates allotment within T+6 working days. Retail allotment is done via a lottery if the issue is oversubscribed. You will receive an allotment confirmation via SMS and email.
Check allotment status on the BSE/NSE website or the registrar's website using your PAN or application number.
Shares Listed on Exchange
Allotted shares are credited to your Demat account on listing day (T+6). The stock begins trading on NSE/BSE. If you were not allotted, the blocked funds are released to your bank account within 6 business days.
Listing day can be volatile. Decide in advance whether you want to sell on listing or hold for the long term.
Key Terms to Know
ASBA
Application Supported by Blocked Amount — your funds are blocked, not debited, until allotment.
Cut-off Price
You agree to pay whatever final price SEBI approves within the price band. Recommended for retail investors.
Price Band
The floor and cap price set by the company. E.g., ₹325–₹345 per share.
Lot Size
Minimum number of shares you must apply for. You can apply for multiples of the lot size.
GMP
Grey Market Premium — the unofficial premium at which shares trade before listing. Indicates market sentiment.
Oversubscription
When bids exceed shares available. Means strong demand; allotment via lottery for retail.
Frequently Asked Questions
Can I apply for an IPO without a Demat account?
No. A Demat account is mandatory to hold shares allotted in an IPO. You must also have a linked bank account for ASBA.
What is the minimum investment for an IPO?
The minimum lot size varies per IPO, but retail investors can apply for as little as 1 lot. The minimum application value is typically around ₹10,000–₹15,000.
Can I apply for multiple lots?
Yes, retail investors can apply for multiple lots up to a maximum of ₹2 lakh. Applying for more lots does not guarantee allotment but improves odds slightly.
What happens if the IPO is oversubscribed?
If the retail portion is oversubscribed, allotment is done via a computerised lottery by the registrar. Each applicant with minimum 1 lot gets equal chance.
Ready to Apply for Your First IPO?
Check the latest upcoming IPOs and live GMP data on IPOMaster.
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