How to Apply for an IPO in India
Applying for an IPO in India has become completely digital and takes just a few minutes. You can apply through your broker's platform, net banking, or a UPI-based app like Lemonn. Here is a complete step-by-step guide.
What You Need Before You Apply
- A valid demat account with a SEBI-registered broker
- A linked bank account with sufficient funds
- UPI ID or net banking access
- PAN card (linked to your demat account)
Method 1: Applying Through a Broker App (UPI)
- Open your broker app (e.g., Lemonn).
- Navigate to the IPO section.
- Select the open IPO you want to apply for.
- Enter the number of lots you want to apply for.
- Enter the bid price (usually the cut-off price for retail investors to maximise allotment chances).
- Enter your UPI ID and submit.
- Open your UPI app and approve the mandate request for the blocked amount.
Your funds are blocked in your bank account (not debited) until allotment. If you are not allotted, the funds are unblocked immediately after allotment.
Method 2: Applying Through ASBA (Application Supported by Blocked Amount)
ASBA is available through most banks. Log in to your net banking, go to the IPO section, and fill in your bid details. The bank blocks the required amount in your savings account. This was the primary method before UPI became widely available.
What Is a Lot in an IPO?
IPOs are not sold in individual shares to retail investors. Shares are grouped into "lots" with a minimum lot size defined by the company. For example, if the lot size is 25 shares and the price is Rs 400, the minimum investment is Rs 10,000. You can apply for one or multiple lots.
Cut-Off Price
The "cut-off price" means you are willing to pay whatever the final issue price is within the price band. For retail investors, it is almost always best to bid at the cut-off price to maximise your chances of allotment.
How Many Lots Can You Apply For?
You can apply for multiple lots, but there is a cap of Rs 2 lakh per application for the retail category. If you want to apply for more, you would need to apply in the HNI category, which requires a larger minimum bid and has different allotment rules.
How Is Allotment Done?
If an IPO is oversubscribed in the retail category, allotment is done via a computerised lottery. You either get the minimum lot or nothing. If undersubscribed, all applicants receive shares proportional to their bids.
When Do You Receive Allotment?
Allotment is typically announced 5–7 business days after the IPO closes. You can check status on the registrar's website, the exchange website, or your broker's app.
Key Takeaway
Applying for an IPO in India is simple and fully digital. Always bid at the cut-off price, have sufficient funds in your linked bank account, and approve the UPI mandate promptly. Use the Lemonn app to browse open IPOs, apply in seconds, and track your allotment status in real time.
