This comprehensive guide walks you through every method of applying for an Initial Public Offering (IPO) using HDFC Bank. Whether you prefer online NetBanking, offline branch visits, or using UPI through a broker, you will learn the complete step-by-step process, eligibility requirements, timelines, and tips to maximize your chances of allotment.
Time Required
5-10 Minutes
Retail Limit
Up to 2 Lakhs
1. What is ASBA and How It Works
ASBA stands for Application Supported by Blocked Amount. It is a mechanism developed by SEBI (Securities and Exchange Board of India) that has revolutionized how investors apply for IPOs in India.
Under the ASBA process, when you apply for an IPO, the application money is not immediately debited from your bank account. Instead, the amount is blocked (marked as lien) in your account. This means the money stays in your account and you continue earning interest on it until the shares are allotted to you.
How ASBA Works
You Apply for IPO
Day T (Application Day)
You submit your IPO application through NetBanking or at a bank branch. The application amount gets blocked in your account.
Amount Remains Blocked
During IPO Period
The money stays in your account earning interest. You cannot use this blocked amount for other transactions.
Allotment Process
T+1 Day
The registrar finalizes basis of allotment based on subscription levels and conducts lottery if oversubscribed.
Shares Credited or Amount Unblocked
T+2 Day
If allotted, the amount is debited and shares are credited to your Demat account. If not allotted, the blocked amount is released.
IPO Listing
T+3 Day
Shares get listed on NSE/BSE. You can sell your allotted shares from 10:00 AM onwards.
Key Benefit of ASBA
Since ASBA became mandatory for all IPO applications, investors no longer face the hassle of refund cheques. Your money stays in your account earning interest until allotment, and is only debited if you receive shares.
2. Eligibility Requirements
To apply for an IPO through HDFC Bank using the ASBA facility, you must meet the following eligibility criteria as per SEBI guidelines:
| Requirement | Details |
|---|
| Bank Account | Active Savings or Current Account with HDFC Bank |
| Demat Account | Active Demat Account with any Depository Participant (NSDL or CDSL) |
| PAN Card | Valid Permanent Account Number linked to both bank and Demat accounts |
| Account Balance | Sufficient clear balance (excluding overdraft/sweep-in facilities) |
| NetBanking | Active NetBanking access (for online applications) |
| Investor Category | Must fall under SEBI-approved investor categories |
Important Note on Account Balance
The amount for IPO application must be available as clear balance in your Savings or Current Account. Overdraft limits and sweep-in/sweep-out facilities are NOT considered for blocking the IPO application amount.
Additional Eligibility for Rights Issues
If you are applying for a Rights Issue through HDFC Bank ASBA, you must additionally:
- Be an existing shareholder of the issuing company as on the record date
- Hold shares in dematerialized (Demat) form only
- Not have renounced your entitlements (fully or partially)
- Not be a renouncee of the issue
3. Documents Required
Before applying for an IPO through HDFC Bank, ensure you have the following information ready:
Bank Details
HDFC Bank Account Number
Depository
DP ID + Client ID
For UPI Method
UPI ID (VPA)
Understanding Your Demat Details
| Depository | DP ID Format | Client ID Format | Example |
|---|
| NSDL | IN + 6 digits | 8 digits | IN301549 + 12345678 |
| CDSL | 16-digit number (first 8 digits) | Last 8 digits of 16-digit number | 1234567890123456 (DP: 12345678, Client: 90123456) |
Critical Warning
Ensure your PAN is correctly linked to both your HDFC Bank account and Demat account. A PAN mismatch between your bank account and Demat account will result in automatic rejection of your IPO application.
4. Apply for IPO via HDFC NetBanking (Online)
The most convenient way to apply for an IPO is through HDFC Bank NetBanking. This method is completely paperless and can be done from anywhere at any time during the IPO subscription period.
Step-by-Step Process
Login to HDFC NetBanking
Visit www.hdfcbank.com and click on the Login button. Enter your Customer ID and Password to access your NetBanking account.
Navigate to IPO Application
From the left-hand menu, go to Request and then click on IPO Application. You may also find it under the Invest section as “IPO Application Through ASBA”.
Select the IPO
You will be redirected to the HDFC Securities IPO page showing all currently open IPOs. Click on the IPO you wish to apply for.
Select Investor Category
Choose your investor status. For retail investors applying up to Rs 2 lakhs, select IND RETAIL. For amounts above Rs 2 lakhs, select HNI/NII category.
Enter Bid Details
Enter the number of lots/shares you wish to apply for and the bid price. You can enter up to 3 different bids at different price points. For retail investors, it is recommended to bid at Cut-off Price for maximum allotment chances.
Enter Depository Details
Select your Depository (NSDL or CDSL) and enter your DP ID and Client ID accurately. Double-check these details as errors will lead to rejection.
Review and Confirm
Review all the details including IPO name, bid quantity, bid price, and Demat details. Ensure your PAN is correctly displayed.
Accept Terms and Submit
Read and accept the Terms and Conditions. Click on Submit to place your bid. The application amount will be immediately blocked in your HDFC Bank account.
Save Application Number
Note down the Application/Reference Number displayed on the confirmation page. You will need this to track your application status or for any queries.
Application Timing
Bids submitted before 2:00 PM on a business day are processed the same day. Bids placed after 2:00 PM may be processed on the next business day. On the last day of IPO, the cut-off time for electronic applications is 5:00 PM.
5. Apply for IPO via HDFC Bank Branch (Offline)
If you prefer the traditional method or do not have access to NetBanking, you can apply for an IPO by visiting any HDFC Bank branch. Your account does not need to be at the same branch where you submit the application.
Step-by-Step Process
Download ASBA Application Form
Download and print the ASBA bid-cum-application form from NSE or BSE website. You can also collect a physical form from the HDFC Bank branch.
Fill the Application Form
Fill in all required details including: your name, HDFC Bank account number, PAN, Depository details (DP ID and Client ID), number of shares/lots, bid price, and investor category.
Visit HDFC Bank Branch
Visit any HDFC Bank branch during banking hours. You can visit any branch, not necessarily the one where your account is maintained.
Submit Form and Documents
Submit the filled application form along with a self-attested copy of your PAN card. The bank official will verify the details.
Amount Gets Blocked
HDFC Bank will block the specified amount in your account and forward the application details to the designated stock exchange.
Collect Acknowledgement Slip
The bank will provide an acknowledgement slip with your application/reference number. Keep this safe for future reference and tracking.
Cut-off Time for Physical Applications
Physical applications at branches have an earlier cut-off time. On the last day of IPO subscription, physical applications must be submitted by 1:00 PM. Plan your visit accordingly.
6. Apply for IPO via UPI Method
SEBI has mandated the UPI route for retail investors applying through registered brokers, depository participants, and registrar transfer agents. This method is convenient as you can apply through your broker’s platform and approve the mandate using your HDFC Bank UPI app.
Step-by-Step Process
Login to Your Broker Platform
Open your stock broker’s trading app or website (e.g., Zerodha, Groww, HDFC Securities, etc.) and navigate to the IPO section.
Select the IPO
From the list of open IPOs, select the one you wish to apply for. Review the IPO details including price band, lot size, and subscription status.
Enter Application Details
Enter the number of lots, bid price (or select Cut-off), and your HDFC Bank UPI ID (format: yourname@hdfcbank or your custom VPA).
Submit Application
Review all details and submit the application. The broker will send a UPI mandate request to your HDFC Bank UPI app.
Approve UPI Mandate
Open your HDFC Bank MobileBanking App or any UPI app linked to your HDFC Bank account. Go to pending mandates and approve the IPO mandate request by entering your UPI PIN.
Amount Gets Blocked
Once you approve the mandate, the application amount is blocked in your HDFC Bank account. You will receive confirmation via SMS and email.
UPI Transaction Limit for IPO
HDFC Bank allows UPI transactions up to Rs 5,00,000 for IPO applications and Retail Direct Schemes, which is higher than the standard Rs 1,00,000 daily limit. This means you can apply for the full retail quota (Rs 2,00,000) using UPI.
Mandate Approval Deadline
You must approve the UPI mandate before the IPO closes. If you fail to approve the mandate in time, your application will not be processed. Set a reminder to approve the mandate immediately after submitting your application.
7. Investor Categories Explained
SEBI has classified IPO investors into different categories with specific reservation quotas. Understanding these categories helps you choose the right one and understand your allotment chances.
| Category | Investment Limit | Quota | Allotment Method |
|---|
| Retail Individual Investor (RII) | Up to Rs 2,00,000 | 35% minimum | Lottery (if oversubscribed) |
| Small HNI (sNII) | Rs 2,00,001 to Rs 10,00,000 | 1/3rd of NII quota (5%) | Lottery (if oversubscribed) |
| Big HNI (bNII) | Above Rs 10,00,000 | 2/3rd of NII quota (10%) | Proportionate |
| QIB | No limit (Min Rs 10 Cr for Anchor) | 50% | Proportionate |
| Employee | As per company’s reservation | Varies | Proportionate |
Retail Category (RII) – Best for Small Investors
If you are investing up to Rs 2 lakhs, you fall under the Retail Individual Investor category. Key points:
- You can bid at the Cut-off Price for maximum allotment chances
- Allotment is by lottery – everyone has equal chance regardless of bid size
- SEBI ensures each retail applicant gets at least 1 lot (if possible)
- No lock-in period – you can sell on listing day
- Some IPOs offer discounts for retail investors
HNI/NII Category
If you wish to apply for more than Rs 2 lakhs, you must apply under the NII (Non-Institutional Investor) category. Key differences:
- Cannot bid at Cut-off Price – must specify exact bid price
- Allotment may be proportionate or by lottery depending on subcategory
- Cannot apply using UPI (limit is Rs 2 lakhs) – must use ASBA
- Higher competition with lower allotment probability
Pro Tip for Maximum Allotment
For retail investors, applying at the Cut-off Price with the minimum lot size gives you the same probability of allotment as someone applying for the maximum Rs 2 lakhs. If the IPO is oversubscribed, consider applying through multiple family members’ accounts (different PANs) to increase overall allotment chances.
8. IPO Timeline and Key Dates
SEBI has mandated a T+3 listing timeline for IPOs, which means shares must be listed within 3 working days of the IPO closing date. Here is the complete timeline:
Anchor Investor Bidding
T-1 (One day before IPO opens)
Anchor investors (QIBs investing Rs 10 Cr+) place their bids. This gives indication of institutional interest.
IPO Opens for Subscription
Day 1 (T-3 to T)
The IPO opens for retail, HNI, and QIB investors. Subscription period is typically 3-5 working days.
IPO Closes
T Day (Last day of subscription)
Final day to submit applications. Cut-off times: ASBA online 5 PM, Physical forms 1 PM.
Basis of Allotment Finalized
T+1 Day (by 6 PM)
Registrar finalizes allotment based on subscription data. Lottery conducted for oversubscribed categories.
Shares Credited / Amount Unblocked
T+2 Day
Allotted shares credited to Demat accounts. Non-allotted applications get amount unblocked.
IPO Listing
T+3 Day (10:00 AM)
Shares get listed on NSE/BSE. Pre-open session 9:00-9:45 AM, regular trading from 10:00 AM.
Faster Access to Funds
With the T+3 timeline, investors who don’t receive allotment get their blocked funds released much faster than the earlier T+6 system. This was made mandatory by SEBI from December 1, 2023.
9. How to Check IPO Allotment Status
You can check your IPO allotment status through multiple channels once the registrar publishes the basis of allotment (typically on T+1 day evening).
Method 1: Through IPO Registrar Website
Each IPO has a designated registrar (MUFG Intime, KFintech, or Bigshare). Visit the registrar’s website:
Enter your PAN, Application Number, or DP Client ID to check status.
Method 2: Through BSE/NSE Website
Visit BSE or NSE Allotment Page
Go to BSE: bseindia.com/investors/appli_check.aspx or NSE allotment status page.
Select the IPO
Choose the IPO name from the dropdown list of recent IPOs.
Enter Your Details
Enter your PAN or Application Number and click Search.
View Allotment Status
The page will show if shares were allotted, quantity allotted, and amount blocked/debited.
Method 3: Check Your Bank Account
A quick way to know your allotment status is to check your HDFC Bank account:
- If the blocked amount is debited – You have received allotment
- If the blocked amount is released/unblocked – No allotment received
- If amount is partially debited – Partial allotment (rare in retail)
Expected Allotment Status Release Time
Registrars typically release allotment status in the evening of T+1 day. MUFG Intime usually releases around 11:30 PM, KFintech around 11 PM, and Bigshare around 7 PM on the allotment day.
10. How to Modify or Withdraw IPO Application
You can modify or withdraw your IPO application only during the IPO bidding window (before the IPO closes). After the IPO closes, no modifications or withdrawals are possible.
To Modify Your Application
Login to HDFC NetBanking
Access your HDFC Bank NetBanking account using your credentials.
Navigate to IPO Application
Go to Request > IPO Application > Click Continue to reach HDFC Securities page.
Go to Order Book
Click on the Order Book tab to see all your submitted IPO applications.
Select and Modify
Click on the IPO application you wish to modify and select Modify. Edit the bid price, quantity, or other details as needed.
Confirm Changes
Review the modified details and click Proceed to submit the changes.
To Withdraw Your Application
Follow the same steps as above, but instead of Modify, click on Cancel Bid to withdraw your application completely. The blocked amount will be released back to your account.
Modification Cut-off Time
Bid modifications are accepted only until 5:00 PM on the bid closing day (T day). Make sure to complete any changes before this deadline.
11. Tips to Increase IPO Allotment Chances
While IPO allotment for retail investors is ultimately based on lottery in case of oversubscription, here are some strategies to improve your overall chances:
Apply Through Multiple Demat Accounts
Use Demat accounts of different family members (different PANs). Each unique PAN has an equal chance in the lottery. Five applications mean five lottery entries.
Always Bid at Cut-off Price
For retail investors, bidding at the cut-off price ensures you are eligible for allotment at whatever final price is determined. Bidding below the final issue price results in rejection.
Apply for Minimum Lot Size
In a lottery system, someone applying for 1 lot has the same probability as someone applying for 15 lots. Save your capital and apply minimum lots through multiple accounts instead.
Submit Application Early
Apply early in the IPO period to avoid last-minute technical issues. However, there is no advantage in terms of allotment probability.
Double-Check All Details
Ensure PAN, Demat details, and bank account details are 100% accurate. Any mismatch leads to automatic rejection regardless of allotment.
Monitor Subscription Status
Check real-time subscription data on BSE/NSE websites. If QIB and HNI subscription is high, it indicates strong institutional interest which may lead to good listing gains.
Avoid This Common Mistake
Never apply using the same PAN from multiple Demat accounts or multiple times in the same IPO. All such duplicate applications will be rejected, and you will receive zero allotment.
12. ASBA vs UPI Comparison
Both ASBA and UPI are methods to apply for IPOs where your money is blocked (not debited) until allotment. Here is a detailed comparison:
✓ Apply directly through bank
✓ No limit on application amount
✓ Can apply for HNI category
✓ Immediate blocking of amount
✓ Works for all IPO types
✗ Requires NetBanking access
✗ Interface may vary by bank
✓ Apply through broker app
✓ Simple UPI mandate approval
✓ Single interface for all IPOs
✓ Pre-IPO application facility
✗ Limit of Rs 5 Lakh per transaction
✗ Retail category only (up to Rs 2L)
✗ Must approve mandate separately
Which Should You Choose?
For retail applications (up to Rs 2 lakhs), UPI through a broker is more convenient as you can track all your IPO applications in one place. For HNI applications (above Rs 2 lakhs), you must use ASBA through NetBanking as UPI has a Rs 2 lakh limit for IPOs.
13. Frequently Asked Questions
Is applying for IPO through HDFC Bank free?
+
Yes, applying for IPO through ASBA at HDFC Bank is completely free. There are no charges for submitting your IPO application, whether online or at a branch. Your funds remain in your account earning interest until allotment.
Can I apply for IPO using HDFC Bank mobile app?
+
Currently, the HDFC Bank Mobile Banking app does not provide a direct facility to apply for IPOs. You need to use HDFC NetBanking (desktop or mobile browser) to apply for IPOs through ASBA. Alternatively, you can use the UPI method through your broker’s app with your HDFC Bank UPI ID.
How many IPO applications can I make from one HDFC Bank account?
+
You can make only ONE application per PAN in any given IPO. If you submit multiple applications using the same PAN (even from different bank accounts or Demat accounts), all applications will be rejected. However, you can apply for multiple different IPOs simultaneously from the same account.
What happens if I don’t have sufficient balance for IPO application?
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If there are insufficient funds in your HDFC Bank account at the time of application, the bank will reject the IPO application and will not submit the bid to the stock exchange. Ensure you have clear available balance (not including overdraft or sweep-in facilities) before applying.
When will my blocked amount be released if I don’t get allotment?
+
Under the T+3 listing timeline, the amount is unblocked on T+2 day (one day before listing). As per SEBI guidelines, banks must complete the unblock process by the closing hours of one working day after the finalization of the Basis of Allotment. If your funds are still blocked beyond this period, contact HDFC Bank customer support.
Can I apply for IPO in both Retail and HNI categories?
+
No, you cannot apply in both categories using the same PAN. You must choose one category based on your investment amount. If you apply for up to Rs 2 lakhs, you are automatically in the Retail category. If you want to apply for more than Rs 2 lakhs, you must apply in the HNI (NII) category only.
What is the cut-off time for IPO applications on the last day?
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On the last day of IPO subscription (T day), the cut-off times are: Electronic ASBA applications through NetBanking: 5:00 PM, Physical applications at bank branches: 1:00 PM, Non-ASBA bank physical applications: 12:00 PM. Bid modifications are accepted until 5:00 PM on T day.
Can NRIs apply for IPO through HDFC Bank?
+
Yes, NRIs can apply for IPOs through their NRE or NRO accounts maintained with HDFC Bank, along with a Demat account in India. However, certain IPOs may restrict NRI participation based on the company’s policies. Check the IPO prospectus for NRI eligibility before applying.
How do I contact HDFC Bank for IPO-related queries?
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For any IPO, Rights Issue, or NCD-related queries or complaints, you can write to HDFC Bank at: sebicomplaints@hdfc.bank.in. You can also visit your nearest HDFC Bank branch or call their customer support for assistance.
Can I sell my IPO shares on the listing day?
+
Yes, retail investors can sell their allotted shares on the listing day from 10:00 AM onwards when regular trading begins. There is no lock-in period for retail investors. Ensure your shares are credited to your Demat account (check on T+2 day evening) before the listing.
Disclaimer: This guide is for educational and informational purposes only. Investment in IPOs involves market risks. Please read the offer document carefully before investing. The information provided here is based on publicly available sources and may change. Consult a SEBI-registered investment advisor before making investment decisions. WebNotes.in does not provide investment advice or recommendations.
