How to Apply for an IPO in India 2026: Complete Guide
An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time. For Indian retail investors, IPOs represent an opportunity to invest in a company at its listing price, sometimes at a significant discount to what it may trade at post-listing.
What Is an IPO and Why Should You Care?
When a company lists on NSE or BSE through an IPO, retail investors get 35% of the total shares offered (the RII quota). If demand exceeds supply, shares are allotted by lottery. If demand is less than supply, every applicant gets shares. Lemonn makes IPO applications seamless, apply in under 2 minutes.
IPO Key Terms You Must Know
| Term | What It Means |
|---|---|
| Price Band | Min and max price range. Apply at the upper band (cut-off) for best allotment chances. |
| Lot Size | Minimum shares you must apply for. Example: 1 lot = 16 shares at Rs.100 each = Rs.1,600. |
| Cut-off Price | Choosing ‘cut-off’ means you agree to pay whatever the final issue price is within the band. |
| ASBA | Application Supported by Blocked Amount, funds are blocked, not debited, until allotment. |
| UPI Mandate | Mobile UPI approval to block funds. Complete within 2 hours of applying or application cancels. |
| Oversubscription | When demand exceeds shares. Retail allotment becomes a computerised lottery. |
| QIB / NII / RII | Qualified Institutional Buyers / Non-Institutional Investors / Retail Individual Investors. |
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Who Can Apply for an IPO?
Any Indian resident with a valid PAN card, a demat account, and a UPI-enabled bank account can apply for an IPO. Non-residents (NRIs) can also apply via NRE/NRO demat accounts. There is no minimum age, a minor’s demat account (operated by guardian) can also apply.
Step-by-Step: How to Apply for IPO on Lemonn
- Open the Lemonn app and tap on the IPO section from the home screen
- Browse open IPOs and tap on the one you want to apply for
- Select the number of lots (minimum 1 lot) and choose Cut-off Price
- Enter your UPI ID linked to your bank account
- Submit the application, you will receive a mandate request on your UPI app
- Open your UPI app (PhonePe, Google Pay, etc.) and approve the mandate within 2 hours
- Funds get blocked in your bank account, not debited yet
- Wait for allotment date (typically 6 days after IPO closes)
IPO Subscription Data: How to Read It
| Category | Quota | What High Subscription Means |
|---|---|---|
| QIB (Qualified Institutional) | 50% of issue | Institutional demand, usually good sign for listing |
| NII sHNI (Rs.2L–Rs.10L) | 5% of issue | High NII = HNIs optimistic about listing gains |
| NII bHNI (above Rs.10L) | 10% of issue | Large HNI demand boosts overall sentiment |
| RII Retail (up to Rs.2L) | 35% of issue | Above 3x means lottery allotment for retail |
How Much to Invest in an IPO?
Retail investors can apply for maximum Rs.2 lakh worth of shares. Always apply for just 1 lot if uncertain, in oversubscribed IPOs, 1 lot and 10 lots have the same allotment probability (it is a lottery). Apply at cut-off price always. Never apply with borrowed money or money you need in the next 2 weeks.
FAQs
How long is the IPO window open?
Typically 3 days. The last day sees the most applications, apply early to avoid UPI failures.
What happens to blocked funds if I don’t get allotment?
Funds are unblocked within 1 business day after allotment results. They return to your bank account automatically.
Can I apply from multiple accounts?
Yes, one application per PAN per IPO. Family members with different PANs can each apply, multiplying allotment chances.
Is it safe to apply for IPOs online?
Yes. Lemonn is SEBI-registered. Funds are blocked via ASBA, they never leave your bank account until allotment.
Can NRIs apply for IPOs in India?
Yes via NRE or NRO demat account. Some IPOs may restrict NRI applications, check the prospectus.
What if I forget to approve the UPI mandate?
Your application is automatically cancelled. Apply early and approve the mandate immediately.
Disclaimer
The stocks mentioned in this article are not recommendations. Please conduct your own research and due diligence before investing. Investment in securities market are subject to market risks, read all the related documents carefully before investing. Please read the Risk Disclosure documents carefully before investing in Equity Shares, Derivatives, Mutual fund, and/or other instruments traded on the Stock Exchanges. As investments are subject to market risks and price fluctuation risk, there is no assurance or guarantee that the investment objectives shall be achieved. Lemonn (Formerly known as NU Investors Technologies Pvt. Ltd) do not guarantee any assured returns on any investments. Past performance of securities/instruments is not indicative of their future performance.
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