How to apply for an IPO using UPI, step by step
Applying for an IPO used to mean paper forms and cheques. Today you can do it from your phone in a few minutes using UPI. Here's how.
🎉 First, what is an IPO?
An Initial Public Offering is when a company sells its shares to the public for the first time, before they list on the stock exchange. The issue usually stays open for about three working days.
✅ Before you apply
- An active demat and trading account
- A UPI ID linked to a bank account in your own name
🪜 Step by step
- Open the IPO section in your trading app.
- Choose the issue and read its key details, including the price band and lot size.
- Enter the number of lots and your bid price. Retail investors can usually choose the cut-off price.
- Enter your UPI ID and submit the application.
- Open your UPI app and approve the mandate request before the cut-off time on the last day.
💰 What happens to your money?
Your money is only blocked in your bank account, not debited. If you get an allotment, the amount for the allotted shares is debited. If you don't, the block is released. Allotted shares are credited to your demat account before listing day.
This article is for general education only and is not investment advice. Investments in the securities market are subject to market risks; read all related documents carefully before investing.