How to apply for an IPO in India

Before you apply

You need an active demat and trading account, a PAN linked to it, and a bank account in your own name. Applications through someone else's account are rejected.

Read the red herring prospectus, at minimum the risk factors, the objects of the issue, and whether the offer is a fresh issue or an offer for sale by existing shareholders.

The application itself

Retail investors bid in lots. A lot is the minimum number of shares; the price band sets the range you can bid in, and bidding at the cut-off price means you accept the final discovered price.

Retail applications are capped at ₹2 lakh. Above that you are bidding in the HNI category, which has a different allotment mechanism.

Approve the mandate in your UPI app before the deadline, usually 5 pm on the closing day. An unapproved mandate is an invalid application.

How allotment works

If the retail portion is undersubscribed, everyone gets a full allotment. If it is oversubscribed, allotment is by lottery — one lot per successful applicant.

Applying for more lots does not improve your odds in the retail lottery. Multiple applications from the same PAN are rejected outright.

Listing day

Shares are credited to your demat before listing and can be sold from the opening bell. Grey market premium is an unregulated, unreliable indicator and is not a forecast of listing price.

If you are not allotted, the blocked amount is released within a day or two of the basis of allotment being finalised.

Frequently asked questions

Can I apply for an IPO without a demat account?

No. Shares are credited electronically, so an active demat account is mandatory.

Does applying for more lots increase allotment chances?

Not in the retail category of an oversubscribed IPO — allotment is a per-application lottery of one lot each.

When is money debited for an IPO?

Never at application. The amount is blocked in your bank account and debited only if shares are allotted.