You can avoid most IPO application rejections by submitting one application per PAN per category, entering the correct UPI ID, and approving the UPI mandate before 5 PM on the closing day.
Since Zerodha verifies KYC details and maps your PAN to your demat account, issues related to incorrect PAN, incomplete KYC, or invalid demat details are unlikely when you apply through Zerodha.
Quick checklist before submitting
- The correct investor category is selected.
- Only one application per PAN per category is submitted.
- The UPI ID entered is correct.
- Your bank account has a sufficient balance.
- The UPI mandate is approved before the deadline.
Common reasons for rejection
Duplicate applications
Submit only one application per PAN per category. If you submit duplicates, the registrar rejects all of them during validation.
Some IPOs have reserved categories such as employee or shareholder quotas. If eligible, you can submit one application under the individual category and one under the reserved category using the same PAN. This is specific to certain IPOs and is an exception, not the norm. If you are unsure, submit just one application.
Errors while placing a bid
- Ensure the UPI ID is correct. Using another person's UPI ID or bank account may result in rejection.
- Select the cutoff price unless you are confident about the price band. If you enter a price below the final IPO price, you will not receive an allotment.
UPI mandate failures
After submission, a UPI mandate request is sent to the UPI ID you provided. Your application will be complete only when you approve this mandate. Check your UPI app or your bank app if the notification is not visible:
- Approve the mandate before 5 PM on the IPO's closing day.
- Enter the correct UPI PIN.
- Ensure your bank account has a sufficient balance and that your transaction limit covers the mandate amount.
Once approved, the required funds are blocked until allotment is complete. If the mandate fails and the IPO is still open, submit a fresh application.