How to Apply for IPO Through UPI
Applying for an IPO through UPI is the fastest and most convenient method available to retail investors in India. Introduced by SEBI as part of the digital IPO application process, the UPI-ASBA mechanism allows you to apply through your broker app, block the required amount in your bank account via a UPI mandate, and complete the entire process within minutes without visiting a bank.
What Is UPI-ASBA?
ASBA stands for Application Supported by Blocked Amount. When you apply for an IPO through UPI, the application amount is not debited from your account; instead, it is blocked until allotment. If you are allotted shares, the exact amount is debited. If not, the block is released, usually within 1-2 working days after allotment announcement. No interest is lost because the money is not deducted until allotment confirmation.
Step-by-Step Process to Apply via UPI
- Open your broker's app (Zerodha, Groww, Upstox, Angel One, Paytm Money, etc.).
- Navigate to the IPO section.
- Select the IPO you want to apply for.
- Choose bid quantity (number of lots) and price (select cut-off for maximum allotment probability).
- Enter your UPI ID (format: mobilenumber@upi or customname@bank).
- Confirm the application. A UPI mandate request will be sent to your linked UPI app.
- Open your UPI app (BHIM, Google Pay, PhonePe, Paytm, bank UPI app).
- Find the pending mandate request and approve it.
- Application is successfully submitted once the mandate is approved.
UPI Apps Compatible with IPO Applications
| UPI App | Works for IPO Mandate? |
|---|---|
| BHIM | Yes |
| Google Pay (GPay) | Yes |
| PhonePe | Yes |
| Paytm | Yes |
| Bank's own UPI app (SBI YONO, HDFC MobileBanking, etc.) | Yes |
Important UPI IPO Application Rules
- The UPI mandate approval must be completed before the IPO subscription closes on the last day. Mandates not approved before 5 PM on the last day are typically rejected.
- Ensure your bank account linked to UPI has sufficient balance to cover the blocked amount.
- One application per PAN is allowed; multiple applications from the same PAN are rejected.
- UPI ID must be linked to the bank account associated with your demat account for smooth processing.
Troubleshooting Common UPI IPO Issues
- Mandate not received: Check the "Pending Mandates" or "Collect Requests" section of your UPI app.
- Mandate expired: Approve before the IPO closes; expired mandates cannot be re-sent in most cases.
- Insufficient balance error: Ensure your bank balance covers the full application amount.
Key Takeaway
UPI-ASBA makes IPO applications simple, paperless, and secure. Your money stays in your account until allotment, eliminating the risk of funds being held by intermediaries. Use the Lemonn app to discover upcoming IPOs, review details, and apply seamlessly using your UPI ID.
