The Complete IPO Guide for Indian Investors · Chapter 8 of 15
How to Apply for an IPO
Step by step
Choose the issue, open your broker or bank app, pick the IPO, choose the category (retail, usually), enter the number of lots and the price (the cut-off price if you accept whatever is fixed), enter your UPI ID and submit. Then accept the UPI mandate request on your phone before the deadline. The application is incomplete without that approval.
Lots and amounts
IPOs are applied for in lots. The minimum lot is set so that the application is worth roughly ₹14,000 to ₹15,000 at the upper band. Retail can bid for up to ₹2 lakh in total, so the maximum is the largest number of lots whose value stays under that limit.
Worked example: price band ₹95 to ₹100, lot size 150 shares. One lot at the upper band costs ₹15,000. The most you can bid in retail is 13 lots (13 × ₹15,000 = ₹1,95,000), because 14 lots would be ₹2,10,000 and fall into a different category.
Common reasons for rejection
Not accepting the UPI mandate in time, a PAN-and-demat name mismatch, wrong demat details, insufficient balance, bidding more than the limit for the category, and multiple applications on the same PAN in the same category.
Should you apply for more than one lot?
Retail allotment is by lottery when the category is oversubscribed, and each valid application is one entry in that lottery. Applying for more lots does not raise your odds; it raises the amount you receive if you win. Decide the number of lots by how much you are comfortable investing, not by trying to improve the chance.
A short pre-submission check
Is the issue open today? Is the category right? Is the UPI ID correct and linked to a bank account with enough balance? Do your PAN and demat name match? Have you set a reminder to approve the mandate?
Key takeaways
- Accept the UPI mandate or the application will not be counted.
- PAN and demat name must match.
- In a lottery, more lots do not mean better odds.
- Retail bids are capped at ₹2 lakh in total.