How to Apply for an IPO Online: Step-by-Step (UPI & ASBA)

Applying for an IPO in India today is entirely digital and usually takes under five minutes once your demat account is set up. Here's exactly what happens, step by step.

1. Check the IPO's price band and lot size

Every IPO is issued within a price range (the "price band") and can only be applied for in fixed multiples called a "lot." For example, if the lot size is 30 shares and the price band is ₹100–₹105, one lot costs ₹3,000–₹3,150. You can see live examples of this on our IPO watch page.

2. Open your broker's app and find the IPO section

Most Indian brokers (Zerodha, Upstox, Groww, and others) have a dedicated "IPO" tab. Select the IPO you want to apply for.

3. Enter your bid

You'll choose how many lots to apply for and, if the issue allows it, whether to bid at the "cut-off price" (recommended for most retail investors — it means you're willing to pay whatever the final price turns out to be within the band) or a specific price within the band.

4. Approve the UPI mandate

This is the part that confuses first-timers. When you submit your application, a payment request (called a "mandate") is sent to your UPI app (GPay, PhonePe, Paytm, or your bank's app). Approving this does not deduct money immediately — it only blocks that amount in your bank account under the ASBA (Applications Supported by Blocked Amount) system. The money leaves your account only if you're allotted shares.

5. Wait for allotment

After the IPO closes, shares are allotted based on demand. If the issue is oversubscribed (more applications than shares available), allotment is done by lottery for the retail category. If you're not allotted shares, the blocked amount is released back to you automatically — nothing to claim manually.

What "subscribed 6.2x" actually means

When you see an IPO listed as "6.2x subscribed," it means the number of shares applied for was 6.2 times the number of shares actually on offer in that category. High subscription numbers indicate strong demand but are not a guarantee of listing-day gains — that depends on broader market conditions and the company's fundamentals at listing.

Where to check official IPO documents

Before applying, it's worth reading the company's Red Herring Prospectus (RHP), which is filed publicly. These are available on the SEBI website and on the stock exchanges' own sites, NSE and BSE.