ASBA & UPI IPO Application: Complete Step-by-Step Guide 2026
How to apply for an IPO using ASBA or UPI in 2026. Understand blocked amounts, UPI mandate, rejection reasons, and best practices for successful application.
How to Apply for an IPO in 2025 — ASBA & UPI Guide
SEBI has made IPO applications significantly easier. Here's the complete process.
Two Ways to Apply
1. ASBA (Application Supported by Blocked Amount)
- Available through your bank's net banking or branch
- Funds are *blocked*, not debited — you keep earning interest
- Available for all investor categories
2. UPI-based ASBA
- For retail investors only (applications up to ₹2 lakh)
- Apply via broker apps (Zerodha Kite, Groww, Angel One, Paytm Money) or bank apps
- Faster and entirely digital
Step-by-Step: Apply via UPI (Most Common Method)
- Open your broker app (Zerodha, Groww, Angel One, etc.)
- Navigate to IPO section
- Select the IPO you want to apply for
- Enter:
- Number of lots
- Bid price (or select "Cut-off")
- UPI ID
- Submit the application
- Open your UPI app (Google Pay, PhonePe, BHIM)
- Approve the mandate — block the application amount
- Done. You'll receive a confirmation SMS/email.
Step-by-Step: Apply via Net Banking (ASBA)
- Log into your bank's net banking
- Go to IPO/Investments section
- Select the IPO and fill details
- The amount is automatically blocked in your account
- No UPI app action needed
Cut-off Price — Always Use This for Retail
Instead of bidding at a specific price, select "Cut-off". This means you're willing to pay whatever final price is discovered. It protects you from having your bid rejected if the issue price is set above your bid price.
Only retail investors (≤ ₹2 lakh) can bid at cut-off.
Common Rejection Reasons
| Reason | Fix |
|---|---|
| UPI mandate not approved | Approve within 24 hours |
| Multiple applications same PAN | Apply only once |
| Wrong demat details | Double-check DP ID + Client ID |
| Third-party bank account | Use your own bank account |
| Bid below minimum lot | Apply for at least 1 lot |
ASBA Benefits
- Money stays in your account earning interest until allotment
- No refund needed — only allotted amount is debited
- Instant unblocking if not allotted (T+2)
Best Platforms to Apply
| Platform | Ease | UPI Support |
|---|---|---|
| Zerodha Kite | ⭐⭐⭐⭐⭐ | Yes |
| Groww | ⭐⭐⭐⭐⭐ | Yes |
| Angel One | ⭐⭐⭐⭐ | Yes |
| SBI Net Banking | ⭐⭐⭐ | Yes |
Key Takeaway
Use UPI-based ASBA for the fastest, most convenient IPO application. Always select cut-off price. Approve the UPI mandate promptly. Never apply from more than one account per PAN.
Frequently Asked Questions
What is ASBA in IPO?
ASBA (Application Supported by Blocked Amount) blocks your application money in your bank account rather than transferring it. You earn interest on the blocked amount until allotment.
Can I apply for IPO through UPI?
Yes. Retail investors (up to ₹2 lakh) can apply via UPI mandate through apps like Zerodha, Groww, Paytm Money, or your bank's IPO portal.
What is the UPI mandate for IPO?
When you apply via UPI, you receive a mandate request on your UPI app to block the application amount. You must approve this mandate within the specified time (usually 24 hours).
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