Today, UPI has become an indispensable tool for transferring payments and paying bills. You can make whatever type of payment you require with a few taps on your mobile phone at any time of day. You can now apply for an IPO (Initial Public Offering) using your UPI ID for more ease.

For retail investors enrolling through registered brokers, DPs (depository participants), and RTAs, the Securities and Exchange Board of India (SEBI) has made the UPI method mandatory (registrar and transfer agents). The procedure is now much simpler and straightforward.

Previously, you had to submit a physical application for an IPO through your bank’s net banking system or by visiting a bank to make an IPO application utilising ASBA (Application Supported by Blocked Amount). Following the submission of your application, the needed cash would be blocked by the bank and debited from your account whenever your shares were allotted.

The process to Apply for IPO through UPI ID

To apply for an IPO using your UPI ID, complete the procedures below:

  • Install any UPI 2.0-enabled app, such as Paytm, Google Pay, and so on.
  • Create a UPI ID and a mobile pin for the bank account associated with your trading or Demat account.
  • Navigate to the IPO menu on your stockbroking app or website.
  • Examine critical facts concerning an IPO, such as the opening and closing dates, lot size, red drafts herring prospectus, and so on.
  • Enter your UPI ID (the one associated with your Demat account) and the quantity of lots you want to bid on.
  • If you want to place a specific bid at a specific price, type it in the input form.
  • Read all of the terms carefully before submitting your IPO application.
  • After successfully submitting, you will receive a request to pay the appropriate amount in your UPI app.
  • The amount for number of lots you want to buy, will be blocked after you accept this request.
  • Your shares will be assigned to you if your bid is successful. Your bank account will be debited for the requisite amount, while your Demat account will be credited for the shares.
  • If you do not receive your shares, the blocked money will be released to you on the date of share allotment.

IPO Subcomponents

An IPO is classified as

  • A new share issue;
  • An offer for sale;
  • or combination of the two.

In the event of a fresh issuance of shares, a corporation issues new shares for reasons such as economies of scale, debt repayment, and so on. The proceeds from this share offering are paid directly to the corporation.

An offer for sale, on the other hand, occurs when existing shareholders sell their current position in the company, with the proceeds going to the shareholder. In this case, the corporation does not receive any of the amounts sold.


Since the Securities and Exchange Board of India mandated that all initial public offerings (IPOs) be enabled by UPI 2.0, applying for IPOs has become a lot faster, easier, and paperless procedure. All that is required is the bid price, quantity, and UPI ID. With this feature, anyone from anywhere in the country can invest in public offers, helping to develop the economy.

How can I use the UPI model to place an IPO bid/order?

 What is VPA?

VPA stands for Virtual Payment Address (VPA) and it is an ID, which a user creates by linking their bank
account to a bank’s mobile application.

 What does ASBA stand for?

ASBA is short form of “Applications Supported by Blocked Amount”. ASBA is an application
containing an authorization to block the application funds in the bank account, for
subscribing to an IPO / FPO issue.

 Can I apply multiple applications in same IPO using same UPI?

No, one bank account one IPO application is allowed.

 Can I withdraw the amount blocked for ASBA bid application?

No. The blocked amount cannot be withdrawn. Such amount will remain blocked in
your bank account till the allotment is completed.

 Can I apply multiple application in single IPO with same PAN through different routes?

Only single application per PAN is allowed in single IPO. Multiple applications with
same PAN in an IPO even applied through different modes (online/physical) will not be
considered for allotment.

 Where can I check if my DP-PAN combination is verified/ failed?

Investor are advised to check the status of DP-PAN verification in ‘IPO Order book’
displayed on site. You can correct DP-PAN details or any other IPO bid details through
‘Revision’ option.

 Can I change my DP-PAN details?

Yes, through revision page you can change your demat account and PAN number
details during the IPO period.

 How many IPO application I can place through single mobile login in single IPO?

You can place maximum 4 IPO applications with unique UPI ID for 4 different investors
through single mobile login.

 Can I change my UPI ID details?

Yes, through revision page you can change your demat account and PAN number
details during the IPO period.

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