What is an IPO Application?

An IPO application is the formal way you express interest in buying shares of a company during its Initial Public Offering (IPO). It's essentially your bid to purchase a certain number of shares at a specific price (or the final determined price).

This application needs to be submitted while the IPO subscription window is open. The entire process is often called IPO bidding.

IPO Application Categories

When you apply for an IPO, you need to select an investor category. This affects the number of shares reserved for you and the allotment rules if the IPO is oversubscribed.

How to Apply for an IPO (Process Steps)

You can apply online (most common) or offline:

Online Process (via Broker/Bank App/Website):

Use your stock broker's platform (like Zerodha, Groww, Upstox etc.) or your bank's net banking portal if it supports ASBA/UPI applications.

1. Log in to your broker's or bank's IPO application portal.
2. Select the desired IPO from the list of current offerings.
3. Fill in the application details (Demat info is usually pre-filled). Specify the quantity (number of lots) and price (either a specific price within the band or choose 'Cut-off').
4. Enter your UPI ID for payment mandate or use the Net Banking ASBA option.
5. Review your application carefully and submit it.
6. Approve the payment mandate request received on your UPI app. This blocks the funds in your linked bank account.

Offline Process:

1. Get the physical IPO application form (from brokers, banks, exchange websites).
2. Fill it out completely, including PAN, Demat details, bid quantity/price, and ASBA bank account details.
3. Submit the form at a designated collection center (broker office or SCSB bank branch).

Information Required in the Form

Whether applying online or offline, you'll typically need to provide:

• Personal Details: Full Name (as per PAN), Contact Information (Phone, Email, Address), PAN Number.
• Demat Account Details: Depository Participant ID (DP ID) and Client ID (Beneficiary Account Number).
• Investor Category: Select RII, NII (Small/Big), or QIB.
• Bid Details: Quantity (number of lots) & Price per share (or select Cut-off if RII).
• Investor Status: e.g., Individual, NRI, Corporate Body.
• Payment Details: UPI ID or ASBA Bank Account Number, Name & Branch.

IPO Bidding Options (Multiple Bids)

For IPOs with a price band (e.g., ₹100 - ₹105), you have flexibility:

• Multiple Bids: You can submit up to 3 bids at different price points within the band. For example, you could bid for 1 lot at ₹102 and another lot at ₹104. The system blocks funds based on the highest value bid (Price x Quantity).
• Cut-off Price Bid (Retail Only): As a Retail Individual Investor (RII), selecting 'Cut-off' means you agree to buy shares at the final discovered price (within the band). This increases allotment probability if the issue is popular. Funds are blocked based on the *highest* price in the band.

Multiple Applications: Generally, submitting more than one application form under the same PAN within the same investor category (e.g., two RII applications) will lead to rejection of all those applications. However, you might be able to apply separately under different categories if eligible (e.g., as an employee and as a retail investor, if an employee quota exists).

ASBA Facility Explained

ASBA (Applications Supported by Blocked Amount) is the standard SEBI-mandated process for IPO payments.

• The application amount is blocked in your bank account (via UPI or Net Banking), not debited immediately.
• You continue earning interest on the blocked funds.
• Funds are only debited for allotted shares upon finalization.
• The blocked amount is automatically unblocked if no shares (or fewer shares) are allotted.
• Available to all investor types (except anchor investors) via supported banks (SCSBs) and UPI.

ASBA Application Cut-off Times (Example for Retail via Net Banking)

Banks often have earlier cut-off times than the exchange on the last day of the IPO. Always check with your specific bank, but typical times mentioned in the source are:

These times are indicative and subject to change; verify with your bank.

IPO Application Charges

Applying for an IPO is typically free. Brokers and banks don't charge application fees.

Standard brokerage fees will apply only when you sell any allotted shares later, depending on your broker's plan.

IPO Application Timeline & Validity

An IPO application is only valid if submitted during the official subscription period.

These are typical timelines; always refer to the specific schedule provided for each IPO.

Key IPO Application Rules

Key rules governed by SEBI and exchanges:

• One PAN, One Application: Generally, only one application per PAN in the main investor categories (RII, NII).
• Own Bank Account: Payment must be from the applicant's own ASBA-linked bank account / UPI ID. Third-party payments are not allowed.
• Name Consistency: Applicant name must match across PAN, Demat, and Bank records.
• Valid Payment: Application requires successful blocking of funds via ASBA or UPI mandate.
• Cut-off Bidding: Option exclusive to Retail Individual Investors (RII).
• Lot Size Multiples: Application quantity must be in multiples of the specified lot size.
• Duplicate Rejection: Submitting multiple applications under the same PAN (in the same category) will likely lead to rejection.

IPO Application Number Explained

When you successfully submit an IPO application, you receive a unique IPO Application Number.

This number is crucial for:

• Tracking your application status on the exchange websites (BSE/NSE).
• Checking the final allotment status on the official registrar's website (like Link Intime or KFintech).

Keep this number handy until the entire IPO process, including potential refunds or share credits, is complete.

FAQs - IPO Application