This comprehensive guide walks you through the complete process of applying for an IPO (Initial Public Offering) through Upstox. Whether you want to apply via UPI or through ASBA net banking, this guide covers everything you need to know including eligibility requirements, step-by-step instructions, important timings, and how to check your allotment status.
- What is an IPO?
- Prerequisites for IPO Application
- Apply for IPO via UPI (Recommended)
- Apply for IPO via ASBA Net Banking
- How to Accept UPI Mandate
- Check IPO Application Status
- IPO Application Timeline
- Important Rules and Timings
- How to Apply for SME IPOs
- HNI Category Applications
- Troubleshooting Common Issues
- Frequently Asked Questions
1. What is an IPO?
An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time by listing on a stock exchange (BSE/NSE). This allows retail investors like you to become part-owners of companies that were previously only accessible to venture capitalists, founders, and early investors.
When you apply for an IPO through Upstox, you are bidding to purchase shares at a specified price during the subscription period. If your application is successful and shares are allotted to you, they will be credited directly to your Upstox Demat account.
IPOs often offer shares at a discounted price compared to the expected listing price. Additionally, applying through Upstox is completely free with zero brokerage charges.
2. Prerequisites for IPO Application
Before you can apply for an IPO through Upstox, ensure you have the following requirements in place:
| Requirement | Details |
|---|---|
| Upstox Demat Account | An active Demat account with Upstox to hold your allotted shares |
| Trading Account | Active Upstox trading account linked to your Demat account |
| Bank Account | Savings/Current account with sufficient balance for IPO application |
| UPI ID | Valid UPI ID linked to your bank account (for UPI method) |
| PAN Card | Valid Permanent Account Number linked to your Demat account |
| KYC Status | Complete KYC verification on Upstox |
The bank account linked to your UPI ID must belong to the same person applying for the IPO. Using a different person’s UPI ID will result in application rejection. Third-party applications are not allowed.
3. Apply for IPO via UPI (Recommended)
The UPI-based application method is the most convenient and fastest way to apply for IPOs through Upstox. Follow these steps:
Once the mandate is accepted, your application is complete. You can track your application status under the Timeline or Summary section in the IPO tab.
4. Apply for IPO via ASBA Net Banking
If you do not have a UPI ID or prefer to apply through your bank’s net banking portal, you can use the ASBA (Application Supported by Blocked Amount) method. Here is how:
Finding Your Upstox Demat Account Number
To apply via ASBA, you need your 16-digit Demat account number. Here is how to find it:
Open Upstox App > Account > My Account > Profile. Your Demat account number will be displayed on this screen. It consists of your DP ID followed by your Client ID.
Many banks accept ASBA applications until 2 PM or 3 PM on the last day of IPO bidding. Ensure you submit your application well before the cut-off time.
5. How to Accept UPI Mandate
After submitting your IPO application via UPI, you need to accept the mandate request in your UPI app. The process varies slightly based on your UPI app:
UPI mandates must be accepted during business hours (10 AM to 5 PM). The mandate acceptance time expires at 5 PM on the IPO closing day. If you miss this deadline, your application will be rejected.
6. Check IPO Application Status
After submitting your IPO application, you can track its status through the Upstox app:
Application Status Meanings
| Status | Meaning |
|---|---|
| Pre-applied | Application submitted before IPO opens, waiting for IPO to start |
| UPI Mandate Pending | Waiting for you to accept the mandate in your UPI app |
| Application Submitted | Mandate accepted, application sent to exchange |
| IPO Allotted | Congratulations! Shares have been allotted to you |
| IPO Not Allotted | Shares were not allotted, blocked amount will be released |
IPO allotment status is typically available 6-7 working days after the issue closing date. You can check it in the Upstox app or on the registrar’s website using your PAN or application number.
7. IPO Application Timeline
Here is the typical timeline for an IPO from application to listing:
If you do not receive allotment, the blocked amount in your bank account will be automatically released within 10 days or by the mandate expiry date. No manual action is required.
8. Important Rules and Timings
| Rule/Timing | Details |
|---|---|
| Application Window | IPO Apply button is enabled during non-market hours for initial two days |
| Mandate Creation | UPI mandates are created only during business hours: 10 AM to 5 PM |
| Mandate Deadline | Must be accepted by 5 PM on the IPO closing day |
| Retail Investment Limit | Maximum Rs 2 Lakhs per IPO for retail individual investors |
| Lot Size | Must apply in multiples of the lot size (varies per IPO) |
| One Application Rule | Only one application per PAN is allowed in each category |
| Cut-off Price | Retail investors can bid at cut-off price for maximum allotment chances |
| Bank Account Match | UPI bank account holder name must match Demat account holder name |
Applying multiple times with the same PAN across different platforms or accounts will result in rejection of all applications. Only one application per PAN is permitted in each investor category.
9. How to Apply for SME IPOs
SME (Small and Medium Enterprise) IPOs are listed on the BSE SME or NSE Emerge platforms. The application process is similar to mainboard IPOs with a few differences:
SME IPOs typically have higher lot sizes and minimum investment amounts compared to mainboard IPOs. They also tend to have higher risk but potentially higher returns. Research thoroughly before investing.
10. HNI Category Applications
If you want to invest more than Rs 2 Lakhs in an IPO, you fall under the HNI (High Net Worth Individual) or Non-Institutional Investor (NII) category:
| Aspect | Retail | HNI/NII |
|---|---|---|
| Investment Limit | Up to Rs 2 Lakhs | Above Rs 2 Lakhs |
| Cut-off Price Option | Available | Not Available |
| Bid Cancellation | Allowed | Not Allowed |
| UPI Limit | Up to Rs 2 Lakhs | Up to Rs 5 Lakhs via UPI |
| Above Rs 5 Lakhs | N/A | Apply via ASBA Net Banking |
To apply as HNI via Upstox, select the HNI option during application and enter bid amount above Rs 2 Lakhs. For bids exceeding Rs 5 Lakhs, use the ASBA net banking method through your bank.
11. Troubleshooting Common Issues
UPI Mandate Not Received
If you have not received the UPI mandate request in your app, try refreshing the UPI app or wait for a few minutes. Mandates are only generated during business hours (10 AM to 5 PM). You can also try re-submitting the application.
Mandate Expired or Failed
If your mandate expires or fails, your IPO application will be rejected. You can submit a fresh application if the IPO subscription is still open. Ensure you accept the mandate within the specified time window.
Application Rejected
Common reasons for rejection include: using a third-party bank account, multiple applications with same PAN, insufficient bank balance, incorrect UPI ID, or technical glitches. Verify all details before reapplying.
Refund Not Received
If you did not receive allotment and the blocked amount has not been released after 10 days, check with your bank first. You can also raise an issue at ipo.upi@npci.org.in for UPI-related refund queries.
For any IPO-related issues on Upstox, you can raise a support ticket through the Upstox app or contact their customer support. Visit the Upstox Help Center for detailed troubleshooting guides.
12. Frequently Asked Questions
Useful Links
This guide is for educational and informational purposes only. IPO investments carry market risks. Past performance of IPOs does not guarantee future returns. Please read all IPO related documents carefully before investing. The information provided here is based on publicly available information from Upstox Help Center and may be subject to change. Always verify the latest process and timings from the official Upstox platform before applying. WebNotes.in is not a SEBI registered investment advisor.