Apply for IPOs using UPI

August 6, 2019
Console, Console

You can now apply for new IPOs (Initial Public Offerings) from within Console. Until now, we asked customers to apply for IPOs using the ASBA (Application Supported by Blocked Amount) from their respective bank’s netbanking portal or by visiting a bank and submitting a physical application with your Zerodha demat account number.

The SEBI has now made it mandatory for all IPOs to be supported by UPI 2.0. This means that we can now support IPO applications on our own. This is a much simpler, online process. All you need to do is enter the bid price, quantity and your UPI ID.

How to apply

You can use any UPI 2.0 enabled app (listed here) to apply for an IPO through Zerodha. Install any UPI 2.0 enabled app and follow the below steps to apply for an IPO through Zerodha.

Login to Console and select ‘IPO’ in the ‘Portfolio’ menu.

Finding the IPO application on Console

Select the IPO you want to apply for from the list of open issues.

Select an IPO to apply for

Once you select an IPO to apply for, you’ll see all the details of the offer, like open date, close date, issue size, lot size, and DRHP. 

Details of the issue

Enter your UPI ID. Make sure this is the UPI ID mapped to your personal bank account. The IPO application is liable to get rejected if the person who is applying is different from the one whose bank account is used to apply.

Enter your UPI ID

Place your bid(s). While placing the bids, only quantity that is a multiple of the lot size is allowed. If you wish to apply at the cut-off price, simply click on the checkbox next to ‘Cutoff price’. If you want to place a bid at a different price, you can do so by entering a price in the ‘Price’ field.

Enter the bid price and quantity

Once you’ve completed all these steps, click on the checkbox to confirm that you have read the issue size, lot size, and DRHP and click on submit.

Submit your application to the exchange

Once you click on submit, you’ll receive a mandate request on your UPI app. It may take a few hours for you to receive this mandate in some cases since this system is still in the initial stages of operation. Accept the mandate and you’re done. This will block the funds required for the application in your bank account until the date of allotment (2 days before the listing date). If you receive an allotment, the money is debited from your bank account and shares are credited to your demat account.

At the end of the day after submitting the IPO bid, you will receive an SMS from the exchange confirming your application. Meanwhile, to check the status of your order you can select the IPO you have applied for and you’ll be able to see the last updated bids in your application.

If you don’t receive an allotment, the blocked funds are released on the date of allotment.

Accept the UPI mandate to complete application

 

You can see a list of all the upcoming IPOs here on the NSE website.

 

Happy Investing,

Matti

Corporate Communications Manager @ Zerodha, perpetual student, an eccentric Grammar Nazi, rock lyrics police and voracious reader.

16 comments

  1. Arghya Dutta says:

    Wonderful !

  2. Ravindra Kumar manharlal Dave. says:

    Excellent. Can u show me How UPI NUMBER looks like.
    Is it like [email protected] ?

  3. Bhaumik says:

    Does we need to submit physical forms at zerodhar branch?

  4. Chandramauli says:

    Is any form required then after ?

  5. Hitesh says:

    How to apply for the same through kite mobile app?

  6. Limit says:

    The normal transfer limit on Kite using UPI is 1 Lakh per day, but a retail segment investor can apply for IPO with a ceiling of 2 Lakhs. Does your system allow applying for 2 Lakhs? Or is it restricted to 1 Lakh? Or is this limit up to the users bank? Which bank allows UPI transactions of 2 Lakhs a day?

  7. Jitendra says:

    I am logged in KITE from my desktop machine.
    As mentioned above, I navigated to console-> IPO link
    But No IPO list is shown but I am getting message : No active IPOs found
    However when I visit SBI->ASBA link I am able to see IO list
    Please let me know what I am missing.

  8. Sheetal Behl says:

    Why am I not able to complete the formalities.every time I try to connect to digilocker it say ur aadhar is not linked yet

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