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IPO Application

IPO application is the process of applying for shares offered in an initial public offering. An investor may apply for IPO shares when the public issue is open.

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An IPO application is a way to submit bids for an initial public offering. Investors who wish to invest in an IPO must submit their bids as soon as the issue is open and before it is closed for subscription. The process of applying for an IPO is also known as the IPO bidding process.

In India, you can submit bids for an IPO in two ways:

  1. Online IPO application
  2. Offline IPO application (Paper form)

Online IPO applications can be submitted through the online facility offered by banks (netbanking, mobile banking apps) and stock brokers. UPI or ASBA is used as the payment option.

Offline IPO applications can be made by submitting the physical IPO application form to the broker or the nearest bank branches that accept IPO applications.

IPO Application Process

The IPO application process can be carried out through brokers, exchanges, and self-certified syndicate banks (SCSBs) using UPI and ASBA facilities.

Investors may submit only one IPO application per PAN number. If more than one application is submitted under the same PAN number, all applications under that PAN number will be rejected. This rule may or may not apply to IPO applications in the employee and shareholder categories.

IPO Application Procedure

  1. Login to online IPO application offered by a broker or bank.
  2. Select the issuing company.
  3. Fill in the data in the IPO application form.
  4. Review it.
  5. Submit the form.
  6. Complete the payment either through UPI, ASBA Net Banking or by entering the account details in the physical form.

IPO Application Categories

When applying for IPO shares, the investor must choose the investor category. Each category has its own reserved quotas and allocation mechanisms. An investor may apply for an IPO in one of the following categories:

Investor Categories IPO Application Limit

Retail Individual Investor (RII)

Up to Rs 2 lakhs

Non-Institutional Investor (NII)

Small NII: More than Rs 2 lakhs to Rs 10 lakhs

Big NII: More than Rs 10 lakhs

Qualified Institutional Buyer (QIB)

Anchor Investors: More than Rs 10 crores

No specified limit specified for other QIB

Employee (EMP)

As defined in RHP document.

Shareholders

As defined in RHP document.

IPO Application Time

An IPO remains open for a minimum of 3 days and a maximum of 10 days. Stock exchanges accept subscription applications between 10:00 a.m. and 5:00 p.m. on days when the IPO is open for subscription, except on stock exchange holidays.

Most banks and stock brokers allow investors to submit IPO application any time (24 hours) when the IPO is open for bidding. Although the application may be submitted at any time, it will not be forwarded to the exchange until 10:00 a.m. the next day.

The deadline for submitting the IPO application on the last day varies by bank or broker, as they need buffer time to send applications to the exchange before 5:00 p.m. The online application ASBA IPO closes for retail investors at 2 p.m. at SBI Bank, 3 p.m. at ICICI Bank, 3 p.m. at HDFC Bank Net Banking, 3 p.m. at Axis Bank and 2 p.m. at Kotak Bank.

Timing for IPO application

  • IPO application opening time: 10 AM (Issue Opening Date)
  • IPO application cut-off time: 5 PM (Issue Closure date)

Check cut-off time for ASBA IPO Application (on Last Day) by the banks.

IPO Application Charges

The bank or stockbroker doesn't charge investors for participating in an IPO. They receive a commission from the issuing company for processing the IPO application.

The stockbroker also charges a brokerage fee if the customer sells the IPO shares allotted to him. Some stock brokers, such as Zerodha, offer stock delivery trading with no brokerage fees, so investing in an IPO is completely free.

IPO Application Form

An IPO application form is a two-page document that contains information about the applicant, offer, and counterparty on the first page and instructions on the second page. It is only required if an investor wishes to make their offers offline. In the case of online IPO applications, the application data is transmitted by the broker/bank to the exchange via an API.

Each application form has a unique application number and space for the stamp/code/serial number of the intermediary where the form is submitted.

The IPO application forms can be downloaded by investors in PDF format from the BSE and NSE websites.

IPO Application Number

The IPO application number is a unique reference number assigned to each transaction of the IPO application. The IPO application number helps investors verify the status of their application and the allotment status.

For online bids, the IPO application number is generated as soon as the application is submitted to the exchange by the bank/broker (between 10:00 am and 5:00 pm).

For paper forms submitted, the IPO application number is pre-printed as Bid cum Application form No. on the IPO application form.

IPO Application Rules

  • Only one application per PAN is allowed.
  • Payment for an IPO should be made from the investor's own bank account to avoid rejection. In some cases, individuals receive allotment for third-party IPO applications also.
  • Applications are not processed and considered valid by the exchanges until the amount is debited or a lien is placed.
  • The UPI facility is only available to retail investors.
  • The ASBA Facility is available to all types of investors, i.e., retail investors, non-institutional investors, and qualified institutional buyers who are not anchor investors.
  • Only retail investors can apply for an IPO at a cut-off price.

IPO Applications validity

Ways to Apply in IPO IPO Bidding Rules

IPO application from two Demat account

Not Allowed

IPO application on same name from different bank account

Not Allowed.

IPO application from joint bank account

Allowed provided the applicant is the first holder.

IPO application through google pay

Allowed via UPI

IPO multiple application on same name in an IPO

Not Allowed

IPO application through Whatsapp

Allowed provided your broker offers this facility.

IPO application through Phonepe

Allowed via UPI

IPO duplicate application

Not allowed

IPO Application Status

The investor can check the status of his IPO application once the bank/broker has submitted the bids to the exchange.

If the bid was submitted online through the broker, you can check the IPO bid status through the broker's website/mobile app in their IPO section. There is a tab there that reflects the status of your application.

If the bid was submitted offline, you will need to check the status with the respective broker/bank.

The status of your application can be either of the following:

  • IPO application under process.
  • IPO application executed.
  • UPI Mandate request pending/approved.
  • Payment received by sponsored bank.
  • Bid submitted.

You can also verify the status of your bid on the NSE or BSE website.

1. IPO Application Status NSE

The NSE provides an IPO application verification tool that allows investors to verify IPO application details uploaded on the exchange and also check the allotment status once available. Investors must register once with their PAN information and can then view IPO application details for registered PAN.

If the investor wishes to amend his offer details, he should contact the bank/broker through which he has submitted his application before the closing of the issue. The IPO application details on the NSE website is available until 6 days after the closing of the offering.

2. IPO Application BSE

The BSE also offers investors the ability to check the status of their applications online. Access the BSE IPO application check link and enter the name of the issue, application number or PAN number. Confirm that you are not a robot, and submit the application.

Frequently Asked Questions

  1. You can check the status of the IPO application on the website or app of the broker/bank where you applied for the IPO. You can also check the status of your application on the website of the NSE and the BSE.

    The allotment status of an IPO application is available on the Registrar's website. The link to check allotment status can be found on Chittorgrah.com

     

  2. For an offline IPO application, investors may obtain an IPO application form from one of the following intermediaries:

    • Brokers (physical form)
    • Self-certified underwriters (physical form)
    • Stock exchange website (NSE/BSE) (PDF form)
    • Website of the lead manager (PDF form)

     

  3. An IPO application number will be generated once the bid has been submitted to the Exchange via the selected online mode. However, if you submit your bid offline, you will find the application number pre-printed on the physical IPO application form as the bid cum application form number.

    If the bid is submitted via the brokerage platform/net banking, you will find the IPO application number in the bid history or on the "Status" tab of the desired IPO in the "IPO" section.

     

  4. A PDF form can be downloaded from the NSE or BSE websites for offline IPO application.

    Steps to download IPO application form from NSE:

    • Go to NSE ASBA e-forms.
    • Click on the desired IPO and it will pop up the Issue detail below the IPO list.
    • Click on the Blank Application Form Download or Bid-cum Application Form and download as desired.
    • Select the Investor Status, Bid Form Type, and no. of forms.
    • Enter the displayed captcha characters.
    • Tick to agree to the terms and conditions.
    • Click on Download.

    Note:

    • When you select the application form, in addition to the above information, you must also enter user information such as username, PAN, DP, bank details, UPI ID, address, cell phone, email and offer details.
    • In a blank application form, all information must be filled in manually, while in the bid cum application form, this information is pre-filled based on the data entered.
    • Users also have the option to download the IPO application form by registering once with the NSE using the above personal information.
    • The registered users can log in and download the form through PAN without entering new data each time, except for the bidding data.

    Steps to download IPO application form from BSE

    • Visit ASBA IPO Application BSE.
    • Select the below from the drop-down
      • IPO Symbol.
      • Repatriation Type.
      • Category Type.
      • Number of forms. (Max 10 applications can be downloaded)
    • Type the displayed characters
    • Click on Download Application Forms.

     

  5. An online IPO application with a bank/broker only requires filling out a few fields. It takes less than a minute to complete and submit an online IPO application.

    Steps to fill an IPO application form:

    1. Check/fill the personal information:
      • Name and contact details of the bidder
      • Telephone number
      • Address
      • PAN details
      • Depository Account Details (DP ID, DP Account No.)
    2. Fill bidding details:
      • Investor Category (RII, NII or QIB)
      • Quantity of Shares. (as per lot size)
      • Price per Equity Share/Cut-off (applicable only for retail investors)
      • Investor Status (Individual, NRI, Mutual funds, Bodies corporate - co)
    3. Check/fill bidding details
      • Amount Blocked
      • ASBA Bank A/c No.
      • Bank Name & Branch
      • UPI ID

     

  6. Yes, you can apply for an IPO in the HNI category in the same way as in the retail category. The only thing you need to note is that you need to select 'HNI' as the investor category in the IPO application form.

    A high net worth individual (HNI) is a retail investor who bids more than 200,000 rupees for shares in an IPO. HNI IPO Applications are part of the non-institutional investor (NII) portion.

    NIIs are divided into small NIIs (sNIIs) and large NIIs (bNIIs) depending on the amount of subscription. The sNIIs are investors bidding for shares worth between 2 lakhs and 10 lakhs and the bNIIs are investors bidding for shares worth more than 10 lakhs.

     

  7. An investor may apply for an IPO through any bank account that is in the investor's name, provided the bank supports the ASBA facility. When an investor applies through a broker/bank, the bank account associated with his/her profile is automatically selected. However, when an investor applies offline, he/she can specify any ASBA-supported bank account in his/her name.

    Remark:

    • Only one application per person (unique PAN number) is allowed for an IPO. There are some exceptions for applications in the employee and shareholder category.
    • The name in the IPO application must match the name of the primary account holder of the demat and bank account.
    • Duplicate applications will be accepted at the time of application but will be rejected at the time of allotment.

     

  8. Stock exchanges accept IPO applications during the IPO subscription period from 10 am to 5 pm. However, many brokers/banks offer the opportunity to submit IPO applications after 5:00 p.m., except on the last day of the subscription period.

    If your broker offers this option, you may place your orders after the market closes, once the IPO is open for public subscription. However, the application will only be uploaded to the exchange system by 10 AM next day.

    Offline IPO orders can be submitted to the broker at any time during the IPO window before 5 pm on the last day.

     

  9. An investor may only submit one IPO application per PAN and the demat account used for the application should be in the same name as the PAN.

    If you have multiple demat accounts, you may submit the application through any demat account as long as it is in your name as the primary account holder. If you submit the application online through a broker, the demat account associated with your profile is usually selected automatically. However, if you submit the application through net banking or offline, you can enter the details of any demat account in your name.

    Note:

    • 1 IPO application is allowed per person (unique PAN)
    • The name of the primary account holder in the demat account and bank account holder must match the name in the IPO application.
    • All duplicate applications will be rejected by the Registrar at the time of allocation.

     

  10. No, you cannot apply for an IPO through credit card.

    The IPO application can be filed online or offline through either UPI or ASBA. For UPI application, you need to have a UPI ID and for ASBA application, you need to have a bank account with one of the banks that support ASBA services.

     

  11. No, a demat account is mandatory to submit an IPO application. You must provide your demat account details whether you are submitting an IPO application online or offline. If you receive an allotment in an IPO, the demat account details are required so that the IPO shares can be credited to your account.

    Note that the name on the IPO application must match the name of the primary account holder of the demat account used in the IPO application. If this is not the case, the application will be rejected.

     

  12. You can apply for an IPO at any time (24 hours) during the subscription period by submitting the online IPO application through Netbanking or a broker. While you can complete the IPO application form at any time, exchanges only accept applications between 10 a.m. and 5 p.m. on weekdays except holidays. Outside of exchange hours or on weekends, applications remain with the broker/bank and are forwarded to the exchange at 10 a.m. the next business day.

    An IPO is usually open for a minimum of three business days (maximum ten business days). If a Saturday falls within the IPO subscription window, you may submit your application on a Saturday, provided your broker/bank allows you to submit applications outside of IPO opening hours and on weekends. Regardless of when you submit an IPO application, the application will only be uploaded to the Exchange System during IPO market hours of 10 a.m. to 5 p.m.

     

  13. An IPO application number is a unique number assigned to each IPO transaction. It can be used to verify the status of an IPO application. There is no specific format for the IPO application number.

    For online IPO applications, the IPO application number is generated as soon as the application is successfully submitted to the exchange (between 10am and 5pm).

    For offline IPOs, the application number is pre-printed on the IPO application form and is referred to as the Bid-cum-Application-Form No.

     

  14. In a book-building IPO, where the price range is set by the issuing company, an investor can place up to 3 bids.

    The investor has the option to submit bids with three different price and quantity combinations - Bid1, Bid2 and Bid3. The chosen price should be within the price range and the quantity should be a multiple of the minimum lot size.

    The application amount of the highest bid of the 3 bids will be blocked from the bank account.

     

  15. The beneficiary account number in the IPO application refers to the DP ID and the account number of the demat account to which the shares are to be credited in the event of an allotment under an IPO.

    The beneficiary account should be in the name of the applicant and may be maintained with either an NSDL or CDSL depository.

     

  16. The use of the cut-off price in an IPO means that the investor is willing to pay the price that the company sets at the end of the book building process.

    In book building IPOs where there is a price range to choose from, the IPO cut-off price is the final share price set by the company based on demand for the IPO shares.

    Note:

    • The IPO cut-off price option is only offered to retail investors.
    • Most retail investors use the IPO cut-off price option.

    Example:

    A company has planned an IPO with a price between Rs 95 and 100. Investors have the option to apply at any price within the specified range. If the cut-off price is chosen, the retail investor will receive an allocation based on the price set by the company, taking into account the demand of QIB, HNI and retail investors who applied at the set price. If QIB and NII have subscribed at a price of Rs 100, the cut-off price will be set at Rs 100.

     

  17. The IPO application number or PAN number is used to check the IPO application status. The allotment status could be found on registrar's website once the allotment is declared.

    You can check the status of IPO application through the trading platform of the broker or the stock exchange (NSE / BSE). You can also check the status with the broker/bank through which you applied for the IPO.

     

  18. Investors can find IPO application number in the following ways:

    • If you submit the IPO application online, the IPO application number gets generated when this application is submitted to the exchange between 10 AM to 5 PM on weekdays expect for holidays. You can check the application number in the IPO order status page of the net banking or broker IPO application. You also receive an email confirmation from stock exchange for your IPO application with the application number.
    • If you are submitting an IPO application using a physical form, you will find your IPO application at the top of the IPO application form mentioned as Bid cum Application Form No.

     

  19. The DP name is the name of the depository participant where you have the demat account. Generally, it is the name of the broker with whom you have an account.

    Together with the DP name, you must also select the depository NSDL/CDSL whose services you are using. In certain cases, you only need to select the depository and enter the DP ID and client ID details.

     

  20. DP ID is an 8-digit number of the depository participant with whom you have an account.

    Every depository participant (DP) is assigned a number by its depository (NSDL/CDSL). The DP ID of a DP having membership with NSDL starts with IN followed by the client ID whereas the CDSL DP ID contains only 16 numeric digits.

     

  21. You can apply for IPO offline by submitting the physical IPO application form to the nearest broker, SCSB, Syndicate Member, Registrar and Transfer and Agents (RTA) or DP.

    Steps to apply for IPO offline:

    1. Download the IPO application form from the exchange website or procure the physical form from the nearest broker/syndicate member office.
    2. Fill in the applicant details like Name, Address, PAN, contact details, Email ID, DP Details.
    3. Select the investor category.
    4. Enter the bid details like quantity and price.
    5. Enter the application amount in words and figures.
    6. Provide the ASBA bank account no. or the UPI ID.
    7. Sign the form.
    8. Submit the form to the nearest intermediary.

    Points to Note:

    • If the payment mode selected is UPI, you can submit the form to any of the intermediaries mentioned above except SCSB.
    • You can register your details as a one-time process with NSE so that you do not have to enter these details each time when you download the form.

     

  22. You can apply for an IPO online through the broker's platform or through Net banking. If you want to apply through the broker, you need to have an UPI ID.

    Steps to apply for an IPO online through broker:

    1. Login to your broker account.
    2. Go to the IPO section.
    3. Select the desired IPO for application.
    4. Enter the bidding details like quantity and price.
    5. Enter the UPI ID.
    6. Submit the request.
    7. Approve the UPI Mandate request once received to complete the application process.

    Steps to apply for IPO online through Net banking (ASBA):

    1. Login to your Net banking account.
    2. Go to the IPO section.
    3. Select the IPO you want to apply for.
    4. Provide the DP details.
    5. Enter the bidding details.
    6. Submit the application.

     


7 Comments

7. Raju   I Like It. |Report Abuse|  Link|September 25, 2024 7:52:17 AMReply
Can I apply 2 or 3 different company IPO same day? Or all rejected?
6. GOBI   I Like It. |Report Abuse|  Link|September 20, 2024 1:17:52 PMReply
WHAT IS THE ALLOTMENT TIME?
5. Shivani Verma   I Like It. |Report Abuse|  Link|April 10, 2024 7:53:45 PMReply
Kya IPO listing date se pending amount poora Krna hota hai...mere account m 153000 rs they or Mera IPO m selection ho gaya jiski kimat 1050000. Rs hai to kya mjhe pending amount pehle account m jama Krna hoga ya fir ye profit m se deduct ho jayega
5.1. Nayan   I Like It. |Report Abuse|  Link|May 29, 2024 2:11:17 PM
Shivani kya hua aapka application status. Mera bhi yehi haal hain abb. Toda maddad karo na information deekar.
5.2. Nm   I Like It. |Report Abuse|  Link|August 12, 2024 1:24:30 PM
Yes, you need to have funds in your bank before the listing date as it will be deducted. If they can't deduct this amount, your application will be rejected.
4. Ram   I Like It. |Report Abuse|  Link|July 7, 2024 9:46:13 AMReply
I have allotted IPO Shares , but I want to reduce the Qty due to lack of funds arrangement. How can we reduce the alloted Qty???
3. Sunny   I Like It. |Report Abuse|  Link|February 22, 2024 3:10:20 PMReply
Can we apply for 2nd IPO just after the money revoked from the 1st IPO ??
2. Firoz belim   I Like It. |Report Abuse|  Link|November 22, 2023 8:34:48 PMReply
Kya raat 9 baje baad asba se ipo apply kar sakte hai ipo open hone ke dusre din ya pahle din ki raat ko....
Please bataye
1. Aman   I Like It. |Report Abuse|  Link|September 8, 2023 5:38:49 PMReply
Benchod last time of applying is 4.30 pm NOT 5 pm.