Last Updated: 9th Apr, 2026
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You can apply for Initial Public Offerings (IPO) using the ASBA facility of banks or UPI on investment platforms. Online platforms of banks or brokers make it easy to apply for IPOs. An IPO allows companies to raise funds from the public and provides investors an opportunity to buy them at issue price before stock exchange listing. Moreover, investors may benefit by investing in suitable IPOs. From FY20- 25, average listing day return of promoter-led companies is 33.4%. In this article, let’s understand how to apply for an IPO in India.
Investment Accounts Required to Apply for IPO Online
Before applying, you need a few essential accounts. These accounts ensure smooth transactions and safe storage of your shares:
- Demat Account: A Demat (Dematerialised) account holds the shares you are allotted in electronic format. Without this, you cannot receive IPO shares.
- Trading Account: This account allows you to buy and sell shares in the stock market once the company is listed after the IPO.
- Bank Account: A savings account is needed for payment of the IPO application amount. This account must be linked with your PAN and can be used for ASBA (Application Supported by Blocked Amount).
Documents Required to Apply for IPO
The common documents required to apply for an IPO include:
- PAN Card: Mandatory for all investors, as it acts as a unique identifier for all financial transactions.
- Address Proof: Aadhaar card, passport, voter ID, or utility bills.
- Bank Account Proof: A cancelled cheque or bank statement for linking payment.
- Income Proof (if applicable): Salary slips, ITR, or Form 16 may be asked for large applications or HNI categories.
- Photographs: Passport-size photos for Know Your Compliance or KYC purposes.
How to Apply for IPO through ASBA?
ASBA (Application Supported by Blocked Amount) is one of the common ways to apply for an IPO. It allows the application amount to remain blocked in your bank account until the allotment is finalised. You don’t need to transfer funds upfront; instead, the funds are held in your account and debited if you receive shares. Here are the steps to apply for IPO:
- Log in to Net Banking; Visit the net banking portal of your bank that offers ASBA services.
- Navigate to IPO Section: Look for the “IPO/ASBA” option under the investment or services tab.
- Select the IPO: Choose the IPO you want to apply for from the list of active issues.
- Enter Application Details: Provide your PAN, Demat account number, quantity of shares, and bid price.
- Confirm and Submit: After verifying the details, confirm your application. The required funds are blocked in your account until allotment.
This method ensures funds are safe in your account while giving you an equal chance of allotment when you invest in an IPO.
How to Apply for IPO through UPI?
UPI-based IPO application is a newer method. It provides a payment process linked directly with your mobile UPI app. Here’s how to apply for initial public offering through UPI.
- Login to Broker or Bank App: Login to your broker’s trading app or your bank’s IPO portal.
- Select IPO: Choose the IPO from the available list.
- Enter Bid and Details: Fill in your PAN, Demat account details, quantity, and price at which you want to apply.
- Choose UPI as Payment Mode: Provide your UPI ID for payment authorisation.
- Approve Mandate in UPI App: Open your UPI app, check the mandate request, and approve it.
- Wait for Allotment: The amount will be blocked in your account until allotment is completed.
UPI tends to make the process simple for retail investors, enabling payment and IPO application on one platform. Now that you know how to invest in IPO in India, let’s take a look at some benefits of applying and factors to consider.
What are the Benefits of Online IPO Application?
Applying for IPOs online offers several advantages compared to traditional offline applications:
- Convenience: You can apply anytime through net banking or mobile apps without visiting a branch.
- Transparency: Funds remain blocked in your bank account until allotment.
- Security: Both ASBA and UPI methods are regulated and ensure safe transactions.
- Speed: The process is typically completed within minutes, and refunds (if any) are processed easily.
- Easy Tracking: Investors can track allotment status online without manual paperwork.
Factors to Consider Before Applying to an IPO
Here are some factors to consider before you invest in IPO:
- Company’s Business Model: Understand the industry, growth prospects, and challenges.
- Financial Performance: Review revenue trends, debt levels, and profitability.
- IPO Price Band: Compare with listed peers to analyse if the set price is reasonable.
- Purpose of Fundraising: Check whether the company plans to use the funds for expansion, debt repayment, or other uses.
- Promoter and Management Track Record: Assess credibility and experience of promoters.
After learning how can we apply for IPO, properly evaluating these factors may help in making a more informed investment decision.
Conclusion
You can invest in IPOs online by ensuring you have the required investment accounts, keeping your documents ready, and applying through ASBA or UPI. Applying online is convenient, faster, and transparent. However, it is important to evaluate factors such as the company’s fundamentals, industry outlook, and your financial goals before applying for any IPO. A well-informed approach can simplify the application process.
