How to Apply for an IPO Online

Everything you need to know about applying for an IPO online, from opening a Demat account to submitting your application.
OPEN ACCOUNT
How to Apply for an IPO Online
OPEN ACCOUNT
3 min
09 April 2025

Initial Public Offerings (IPOs) present a unique opportunity for investors to participate in the growth story of a company right from its inception on the stock market. However, the process of applying for an IPO might seem daunting to many. This article aims to demystify the process and provide a comprehensive guide on how to apply for an IPO online in the Indian securities market.

How to apply for an IPO?

To invest in an Initial Public Offering (IPO), the first step is to open a Demat and trading account. These accounts are essential for holding and transacting shares electronically. The key documents required to open a Demat account include:

  • PAN card – for identification and income tax compliance
  • Aadhaar card – for identity and address verification
  • Address proof – such as utility bills or bank statements
  • Identity proof – such as a driving licence or passport

Once your account is active, you can begin applying for IPOs through various channels offered by your bank or broker.

What do you need to apply for an IPO?

To apply for an IPO, you typically need the following:

  • Demat account: A Demat (Dematerialised) account is essential for holding shares in electronic form.

  • PAN card: A Permanent Account Number (PAN) card issued by the Income Tax Department of India is mandatory for investing in securities.

  • Bank account: A bank account linked to your Demat account for the transfer of funds.

  • Trading account: A trading account with a registered stockbroker to facilitate the buying and selling of shares.

Pro tip

Invest in equities, F&O, and upcoming IPOs effortlessly by opening a Demat account online. Enjoy a free subscription for the first year with Bajaj Broking.

demat

How to apply for IPO online - Through broker

Alternatively, you can apply for an IPO through your broker:

  1. Log in to your broker's online account. If you don’t have an account, register using your email and phone number.
  2. Find the IPO tab and go to the current IPO section. Choose the IPO you want from the list.
  3. Enter the number of shares (lot size) you want to bid for and select your bid price. To improve your chances of getting shares, consider bidding at the cut-off price or the highest price in the price range.
  4. Enter your UPI ID and click the submit button. You’ll need to approve the transaction in your UPI app.
  5. Wait for a notification in your UPI app. The money for your application will be blocked until the IPO allotment date.

How to apply for an IPO using ASBA?

ASBA (Application Supported by Blocked Amount) is a convenient and secure method of applying for IPOs directly through your bank account. Here's how to apply:

  1. Ensure you have a Demat account: It must be linked to your bank account for seamless processing.
  2. Access net banking: Log in to your bank’s internet banking platform and find the IPO section.
  3. Choose the IPO: Select from the list of open IPOs. It’s advisable to research the company beforehand.
  4. Fill in the application form: Enter details such as the number of shares, your PAN, and Demat account number.
  5. Submit the application: Once verified, submit the form. The application amount will be blocked in your account—not debited—until the allotment.
  6. Check the allotment: After allotment, if you receive the shares, the amount will be deducted. If not, the funds are unblocked.

ASBA ensures your money remains in your account until the shares are actually allotted, offering both transparency and convenience.

How to apply for an IPO using UPI?

Applying for an IPO through UPI (Unified Payments Interface) is a fast and efficient method, especially suited for retail investors. Follow these steps:

  1. Open and link a Demat account: Your Demat account should be linked to your bank account.
  2. Log into your trading platform: Use your broker’s online or app-based platform to access IPO applications.
  3. Select the IPO: Choose the IPO you want to invest in after evaluating its details and financials.
  4. Fill in the application form: Enter the number of shares and personal details as required. 
  5. Provide your UPI ID: Make sure the UPI ID is correct and linked to your bank account.
  6. Approve the mandate: A request will appear in your UPI app to block the funds. Approve it to confirm your application.
  7. Track the allotment: You can check the status online to see if the shares have been allotted.

This process ensures quick, paperless, and secure IPO applications, with funds only deducted if the shares are allocated.

How to apply offline

If you prefer not to apply online, you can opt for the offline method:

  1. Visit a branch of your bank or brokerage firm.
  2. Fill out the ASBA application form and provide your KYC details.
  3. Your funds will be blocked in your bank account. Once shares are allotted, the corresponding amount will be debited from your account.

Both online and offline methods have their advantages and cater to the preferences of different investors. Choose the one that suits you best based on convenience and ease of access.

Both online and offline methods have their advantages and cater to the preferences of different investors. Choose the one that suits you best based on convenience and ease of access.

Why should you invest in IPOs?

Investing in IPOs can offer several advantages:

  • Potential for high returns: IPOs of promising companies often experience significant price appreciation in the initial days of trading.

  • Opportunity to invest early: IPOs provide investors with a chance to invest in companies during their early stages of growth.

  • Diversification: Adding IPOs to your investment portfolio can help diversify risk and potentially enhance overall returns.

How do you invest in IPO shares?

Investing in IPO shares involves the following steps:

  1. Research: Conduct thorough research on the company's business model, financial performance, industry trends, and future prospects.

  2. Assess risk: Evaluate the risks associated with investing in the IPO, including market volatility and company-specific risks.

  3. Apply for IPO: Once you have identified a suitable IPO, you can apply for shares through your broker or online through internet banking.

  4. Allotment: After the IPO subscription period closes, the allotment process begins, and shares are allocated to successful applicants.

  5. Listing and trading: Upon allotment, the shares are listed on the stock exchange, and investors can begin trading them in the secondary market.

Is there any eligibility criteria for IPO application?

To invest in an Initial Public Offering (IPO), you must meet the following eligibility criteria:

  1. SEBI approval: You must be an approved investor category as per SEBI guidelines. This includes:
    • Qualified Institutional Buyers (QIBs)
    • Non-Institutional Investors (NIIs)
    • Retail Individual Investors
    • Employees
  2. Demat and trading account: You need to have a Demat and trading account with a recognized Depository Participant (DP) like 5paisa..
  3. PAN card: A Permanent Account Number (PAN) is mandatory for all investors.
  4. Linked bank account: Your bank account must be linked to your Demat account to facilitate the transfer of funds.
  5. Sufficient funds: Ensure you have sufficient funds in your bank account to cover the IPO application. The amount will be blocked until the allotment process is completed. If you are allotted shares, the funds will be transferred to the company. If not, the blocked amount will be released.

Accounts required to apply for an IPO online

To apply for an IPO online, investors need to have a Demat account, a trading account, and access to internet banking services provided by their bank.

What are the benefits of online IPO application?

  • Time-saving: No need to visit the broker's office or bank, saving valuable time.

  • Convenience: The process is seamless and can be completed from anywhere, offering greater ease.

  • Interest on funds: If the application is made through a savings account, the amount remains in the account and continues earning interest until the IPO allotment date.

  • Transparency and control: The online process is transparent, allowing you full authority and control over the application.

Conclusion

Investing in IPOs can be a rewarding opportunity for investors to participate in the growth journey of promising companies. By understanding the process of applying for an IPO online and the necessary requirements, investors can make informed decisions and capitalise on the potential benefits offered by IPO investments in the Indian securities market.

Related Articles:

What are the Different Types of IPO

How is an IPO Valued

What is IPO Allotment Process

How to Check your IPO Allotment Status

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Frequently asked questions

How to apply for an IPO online?

To apply for an IPO online, you need a Demat and trading account. Log in to your trading platform or banking app, select the IPO section, and choose the desired IPO. Enter your details, including the number of shares and bid price, and confirm your application. The amount will be blocked in your account until the allotment. If shares are allocated, funds are deducted; otherwise, the blocked amount is released.

How to buy IPO stocks online?

To buy IPO stocks online, first, ensure you have a Demat and trading account. Log in to your trading platform, locate the IPO section, and choose the desired IPO. Specify the quantity of shares and your bid price, then complete the application. After allotment, if you receive shares, they will automatically be credited to your Demat account. You can then trade these shares once they are listed on the stock exchange.

Is IPO money refundable?

Yes, if you do not receive an allotment in the IPO, the blocked amount in your account is released. The funds are not deducted unless shares are allotted to you. If you’re unsuccessful in securing shares, the blocked amount is unblocked and made available in your account, typically within a few days of the allotment process. This ensures that no money is permanently withheld if you do not receive the IPO shares.

How to invest in IPO for beginners?

Beginners can invest in IPOs by first opening a Demat and trading account. Research the company offering the IPO, review its financials and growth prospects, then apply through your broker’s platform or bank app. Select the number of shares and bid price, and confirm the application. It’s advisable to start with well-established companies and ensure you understand the risks involved, as IPO investments can be volatile in the short term.

Is buying IPO a good idea?

Investing in an Initial Public Offering (IPO) can be a promising opportunity, especially for investors looking to enter at an early stage. Many crossover investors choose to invest during the IPO phase to potentially benefit from the company’s future growth as its share value appreciates over time. While IPOs can offer substantial upside, it’s important to conduct thorough research and assess the associated risks before investing.

When can I buy an IPO stock?

You can invest in IPOs in two ways:

  1. Primary Market: Participate directly in the IPO process and purchase shares directly from the company.
  2. Secondary Market: Buy shares of the company after the IPO on a stock exchange, like the NSE or BSE.
Can you buy an IPO before it goes public?

Yes, it is possible to invest in a company before it officially goes public through a process known as pre-IPO investment. This opportunity is typically available to institutional investors, venture capitalists, or high-net-worth individuals. Pre-IPO shares are purchased prior to the company’s listing on the stock exchange, potentially offering early access to high-growth opportunities—but also carrying higher risk due to limited public information.

How can I buy IPO offline?

Though the online IPO application process has become more accessible and efficient, you can still apply offline by following these steps:

  1. Obtain the application form: Collect the IPO form from your broker or download it from the NSE/BSE website.
  2. Fill in required details: Complete the form with your bank account, Demat account, PAN card number, and preferred price (including the option to apply at the cut-off price).
  3. Submit the form: Submit the filled form to your broker or a bank that offers the ASBA (Application Supported by Blocked Amount) facility.

This method allows participation in IPOs even without access to digital platforms.

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