How to apply for an Initial Public Offering (IPO)?

An IPO application can be submitted using UPI or Applications Supported by Blocked Amount (ASBA).

UPI method

An IPO application can be submitted through Zerodha from Kite web or Kite app using any UPI application. Visit npci.org.in/what-we-do/ipo/live-partners to know the supported UPI apps. There are no charges to apply for an IPO through Zerodha.

The bank account mapped to the UPI ID should be that of the person applying for the IPO. The IPO application will be rejected if a different UPI ID is used.

Using Kite app

To apply for an IPO from Kite app, follow these steps:

1. Tap on Bids.
2. Tap on IPO.
3. Select the IPO from the ongoing list of IPOs and tap on Apply.
4. Tap on Apply again and enter the UPI ID.
5. Enter or edit the Quantity and the Price.
6. Tap on the undertaking tick box and swipe the Submit button.
7. Accept the mandate on the UPI app.

Using Kite web

To apply for an IPO, follow these steps:

1. 1. Log in to kite.zerodha.com.
   2. Click on Bids.
   3. Click on IPO.
   4. Click on Apply.
   5. Select investor type.
   6. Enter the UPI ID.
   7. Enter the Qty and Price. The quantity should be a multiple of the lot size, and the price entered should be within the issue price range.
   8. Click on Submit.
   9. Accept the mandate on the UPI app. The UPI mandate can be accepted until 5 PM on the closing day of the IPO.

Once the shares are allotted, the blocked amount is debited from the investor's bank account. If shares are not allotted, the amount is unblocked.

Application Supported by Blocked Amount (ASBA) method

Application Supported by Blocked Amount (ASBA) is a process in which investors' application money remains in their bank accounts but is temporarily blocked until the shares are allotted. Once the shares are allotted, the blocked amount is debited from the investor's account. If shares are not allotted, the amount is unblocked.

Online

To apply for IPOs online using ASBA, log in to the internet banking portal provided by the bank and fill out the required details, including the demat account details. They are as follows:

• Demat ID: Demat ID is a 16-digit number used to identify a demat account, and it is unique for every client. The demat ID can be found by visiting console.zerodha.com/account/demat.
• Depository: CDSL.
• DP Name: Zerodha.

Offline

1. Download the blank ASBA form from NSE (WEB) or BSE (WEB).
2. Print the forms and fill in information such as personal details, demat account details, bid quantity, price etc.
3. Submit it to the bank. The bank must be designated as a Self-Certified Syndicate Bank (SCSB) (WEB).

How many bids can be placed in an IPO?

Up to 3 bids can be placed in the IPO application. Each bid needs to be within the price range, and the quantity should be a multiple of the lot size. The amount blocked would be the highest among the 3 bids.

Example scenario

The price range of an IPO is between ₹100 and ₹105. The three bids can be as follows:

The eligible bid for various issue prices:

The amount blocked for the IPO would be ₹15,150, which is the highest of all three bids.

Did you know?

• The pre-apply window opens one day prior to the IPO, providing convenience for early applications. However, the chances of allotment remain unchanged regardless of when the IPO is applied for. IPO orders can be placed during the pre-apply window as well as between the offer start and close date. Orders placed between 10 AM and 4:30 PM will receive the mandate on the same day, while orders placed after 4:30 PM will receive it on the following day. To learn more about IPO order placement, see When can IPO orders be placed on Zerodha?
• The application will also be rejected if the IPO is applied for multiple times using different demat accounts and the same PAN.
  
• IPO can be applied if the account is marked as dormant. However, stocks cannot be sold until the account is reactivated. To learn more, see How to reactivate the Zerodha account?
• HUFs can apply for IPOs using UPI and ASBA. The HUF bank account should be mapped to a UPI ID to apply through Zerodha. Company, partnership, LLP, AOP, trust, and society account holders can apply for IPOs only through ASBA.
• Minor account holders can apply for IPOs online using UPI or ASBA.
  
• Check the upcoming IPOs to learn about all the companies that are going public.
• Visit support.zerodha.com/category/console/ipo for other IPO-related queries.