UPI IPO Application

An investor can apply in an IPO using UPI as a payment option. The Unified Payment Interface (UPI) platform blocks the fund for IPO application after the customer approves the fund block mandate request.

UPI IPO Application is an alternative to the ASBA IPO Application wherein an investor uses UPI ID as a payment option while subscribing for IPO.

UPI is short of Unified Payment Interface. UPI is a platform build by the National Payments Corporation of India (NPCI) to simplify retail payments and settlement systems in India. It is an initiative by RBI and the Indian Banks Association (IBA).

The UPI IPO application allows you to apply in an IPO directly from your broker (i.e. Zerodha, Sharekhan or Angel). But it requires an additional step of approving the fund block mandate request in BHIM or net-banking mobile app. This additional step makes this process cumbersome. The overall process is not as fast as the ASBA IPO application due to an additional layer added.

Parties involve in UPI IPO Application

  1. Broker (IPO Application Software)
  2. Exchanges (NSE & BSE IPO Bidding Platform)
  3. UPI Platform
  4. BHIM or Net-Banking Application
  5. Registrar
  6. Depositories (CDSL or NSDL)

ASBA Vs UPI IPO Application

ASBA and UPI are two different ways through which funds are blocked when investors apply in IPO. The bank blocks the fund (lien mark on account) directly in the investor's bank account when using ASBA. When choosing UPI as a payment option, the customer has to take additional steps to approve the fund blocking mandate request using UPI mobile app.

Facility ASBA IPO Application UPI IPO Application

Fund Blocking Mechanism

Directly by the bank

Through UPI




Multiple IPO applications from one bank account

Possible as some banks support 3rd Party IPO applications*

Not possible.

Minor, HUF or Corporate IPO Application

Only possible if you have an account with a bank supporting 3rd party IPO application*

Not possible as UPI ID cannot be set up for Minor, HUF or Corporate account

Facility offered by

Only Banks

All brokers and banks

Time required for IPO Application

Just a few seconds

May take a few hours as the UPI mandate doesn't come instantly.

Process Complexity


High as in addition to the filling up IPO application, the UPI payment mandate has to be approved in net banking or BHIM app.

Need Smartphone


Yes, you should have BHIM or net-banking app installed and setup on your Smartphone.

* Banks supporting 3rd Party ASBA IPO Application: SBI, Asix Bank, BoB Bank, RBL Bank etc.

UPI IPO Application Process

UPI IPO facility is offered by the brokers who don't have a banking license. In this case, the IPO applications are made using UPI id. The customer has to follow a few additional steps to accept the UPI mandate using the net banking app or BHIM app.

Steps to apply in IPO using UPI

  1. Create a UPI ID using the net banking app or BHIM app on your phone.
  2. Visit the IPO website or Mobile App offered by your broker.
  3. Select the IPO and click the Apply button.
  4. Fill the form and submit the UPI ID as a payment option.
  5. The broker sends the IPO application to the exchange.
  6. You will receive a block mandate request on your UPI App (Net-banking or BHIM). This may take up to 24 hrs.
  7. Login to net-banking or BHIM and approve the mandate request.
  8. The funds get blocked in your bank account.
  9. Exchange sends application data to the registrar after the issue closes.
  10. Registrar allocates the shares.
  11. Funds are withdrawn or unblocked from the bank account.
  12. Registrar transfers the shares to your demat account.



UPI IPO Mandate

UPI IPO Mandate is a request on a smart phone app to block the fund for an IPO application.

When you apply for an IPO using UPI ID as payment option, you receive a fund block mandate request on the app where he has setup his UPI ID i.e. net-banking or BHIM app.

Steps to accept UPI IPO Mandate

  1. Login to your net banking app or BHIM App
  2. Go to UPI Section >> My Mandates page
  3. Check Request Received. If you do not see the request, try after few hours.
  4. Validate and accept the request



UPI IPO Timing

An investor can apply in an IPO using UPI as a payment gateway at any time while the public issue is open for bidding.

UPI IPO Application


Start Time

10 AM on Issue Open Date

End Time

5 PM on Issue Closing Date

Accept the UPI Mandate

Up to 12 PM on Issue Closing Date's next day

Bid Update/Cancel Time

Anytime after applying to 5 PM on Issue Closing Date

UPI IPO Limits

  • An additional step to follow for approving the fund block mandate request.
  • This facility is not available to Minor, HUF and Corporate accounts.
  • 3rd Party IPO Application is not available when using UPI. The name on IPO Application, Demat Account and Bank Account should be same.
  • Not all banks offer this facility. Check the list of permitted apps & banks for UPI IPO Application.
  • Once you accept the UPI mandate, you cannot modify the bidding details in the IPO application. To modify, you have to cancel and create new IPO application.
  • The exchange's bidding platform runs only on week days. If you apply in IPO over the weekend, you will receive the UPI mandate request only on next working day.
  • Mandate for fund blocking usually comes after few hours after submitting the IPO application. This result in to unnecessary waiting and confusion.
  • In some case the UPI mandate requests fail due to technical issue or while approving it.
  • Few investors face delay in fund unblocking.

UPI IPO Application Benefits over ASBA

  • Apply for IPO through any broker including discount stock brokers like Zerodha and Upstox.
  • You can apply in an IPO till 5 PM on issue closing day.
  • You have time till 12 PM on Issue Closing Date's next day to approve the UPI mandate. This gives you ability to cancel your IPO application for additional 22 hrs. The banks (ASBA) stop accepting any modification by 2 PM on the last day.
  • Similar to ASBA, UPI IPO application is free.

UPI IPO Refund

The funds blocked for UPI based IPO application is released on the day of IPO allotment, if none or partial allotment is received.

What if funds are blocked even after allotment?

Your funds get automatically unblocked and credited to your account with the expiry of the mandate request period if the bank failed to unblock them on the allotment date.

At the time of accepting the fund block mandate request, you also specify the validity of the request as per the below screenshot. If for any reasons, the funds are not unblocked on the allotment date, the fund will surely released when the fund block request expires.

UPI IPO Mandate Refund Validity

You could also reach out to the bank to unlock the funds.


Almost all large national level banks offer UPI based IPO Applications. This includes both private and public sector banks.

You can check list of permitted apps & banks for UPI IPO Application.

Answered on

Frequently Asked Questions

  1. 1. Can I apply for two IPO applications using one UPI ID in an IPO?

    No, only one IPO application in an IPO is permitted per UPI ID. In case if UPI as a payment option for IPO, the name in IPO application, Demat Account and Bank account should be same.

    Note that you can use 3rd Party IPO Application (applying in an IPO for different people using same bank account), if you bank permits it. Few banks like SBI, Asix Bank, and RBL Bank offer the 3rd Party IPO application.


  2. 2. How to modify IPO bid details after accepting the UPI mandate?

    You cannot modify the IPO bid details (shares, price etc.) in the application once you accept the UPI mandate.

    If the IPO is still open for bidding, you could cancel the IPO application and create new one.


  3. 3. Till what time I can accept or revoke the UPI IPO mandate?

    You could accept or revoke the UPI IPO mandate for blocking the funds till 12 PM of next day of issue closing dates (T+1 Day). The T+1 day include holidays as UPI processes transactions on all days.


  4. 4. Whom should I contact for problem with IPO UPI mandate request?

    You should reach out to your bank with the Unique Mandate Number (UMN) for any problem related to the IPO UPI Mandate block or unblock request.


  5. 5. What happens if my funds remains blocked after IPO allotment?

    If you didn't receive the allotment and the funds remain blocked, you may reach out to the bank of the UPI app you use.

    Note that every UPI IPO mandate request has validity date which you choose at the time of accepting the request. In case the funds are not unblocked after allotment, the funds get unblocked automatically when the validity expires. Usually banks keep 12 days validity.


    UPI IPO Mandate Refund Validity




1. aa  Nov 17, 2021 6:57:46 PM I Like It. | Report Abuse Reply
I requested for Tarsons IPO , I got UPI request but I forgot to approve and today (17-Nov-2021) was the last date and so could I approve UPI mandate till 11:59 PM of (17-Nov-2021)