How to Apply for IPO Through UPI in India: Step-by-Step ASBA Guide 2026

What Is an IPO and Why Should You Apply Using UPI?

An Initial Public Offering (IPO) is when a private company sells shares to the public for the first time, allowing you to become a shareholder. In India, IPOs are regulated by the SEBI, ensuring transparency and fairness.

Applying via UPI (Unified Payments Interface) is now the most popular method because it’s instant, paperless, and secure. Unlike older methods like cheques or demand drafts, UPI lets you apply directly from your bank account using apps like PhonePe, Google Pay, or your bank’s UPI app. As of April 2026, 92% of retail IPO applications in India use UPI, according to SEBI data.

Why UPI Over Other Payment Methods?

UPI is faster than NEFT/RTGS, which can take hours. It also eliminates the need for physical forms or bank visits. Plus, your money stays in your account until allotment—no deductions unless shares are allocated.

Understanding the ASBA Process: How It Works in 2026

The Application Supported by Blocked Amount (ASBA) is a SEBI-mandated system that ensures your IPO application is valid before funds are deducted. Here’s how it works:

• Block: Your bank blocks the IPO application amount in your account (no debit yet).
• Apply: You submit the application via your broker’s platform or bank portal.
• Allotment: If shares are allocated, the blocked amount is debited. If not, the block is released.
• Refund: Unsuccessful applications get refunds within 6-7 working days.

As of April 2026, ASBA is mandatory for all IPO applications in India. Over 95% of retail investors use it due to its safety and efficiency.

Key Benefits of ASBA in 2026

Step-by-Step Guide: How to Apply for an IPO Using UPI in India (2026)

Step 1: Check Eligibility and Prerequisites

Before applying, ensure you meet these requirements:

• A valid demat account with a SEBI-registered depository participant (DP) like CDSL or NSDL.
• A savings or current account linked to your demat account.
• A UPI ID (e.g., yourname@bankname) from a UPI-enabled bank (all major banks support UPI in 2026).
• PAN card linked to your demat account (mandatory for IPOs).

As of April 2026, over 85% of Indian adults have a PAN card, but only 32% hold a demat account. If you’re new, open a demat account with brokers like Zerodha, Upstox, or ICICI Direct—most offer free account opening.

Step 2: Research the IPO You Want to Apply For

Not all IPOs are worth applying for. In 2026, the average IPO listing gain is 18%, but some stocks have seen gains as high as 45% (e.g., Tata Technologies IPO in 2023). Use these tools to evaluate:

• SIP Calculator to compare potential returns.
• IPO grading reports from CRISIL or CARE Ratings (available on SEBI’s website).
• Company’s financials (revenue growth, profit margins) from its Red Herring Prospectus (RHP).
• Industry trends (e.g., EV sector IPOs grew 22% in 2025).

As of April 2026, the average IPO size in India is ₹500 crore, with retail investors allocated 35% of shares.

Step 3: Fund Your Bank Account for the IPO

You don’t need to transfer money upfront. ASBA blocks the amount, but ensure your account has sufficient funds to cover the bid. For example:

• If applying for ₹1 lakh worth of shares, keep at least ₹1 lakh in your account.
• Banks like HDFC and SBI allow overdrafts for IPO applications, but this is risky—avoid unless necessary.

As of April 2026, the average IPO application size for retail investors is ₹1.2 lakh, up from ₹80,000 in 2023.

Step 4: Choose Your Application Platform

You can apply via:

• Broker Platforms: Most brokers like Zerodha, Upstox, and Angel One offer UPI-based IPO applications. Log in to your broker’s app/website.
• Bank Portals: Banks like ICICI, HDFC, and Axis Bank provide IPO applications through their net banking or mobile apps.
• Stock Exchange Websites:

  NSE and BSE allow direct applications via UPI (e.g., NSE’s “IPO” section).

In 2026, 68% of retail investors use broker platforms for IPO applications due to convenience.

Step 5: Fill Out the IPO Application Form

Here’s what you’ll need to enter:

• IPO Name: Select from the current IPO list (e.g., “IRCON IPO 2026”).
• Bid Details: Choose the number of lots (1 lot = 1 share in most cases) and price band (e.g., ₹100-120 per share).
• UPI ID: Enter your UPI ID (e.g., john@sbi).
• Dematerialisation (Demat) Account: Provide your 16-digit demat account number.
• PAN: Re-enter your PAN to confirm identity.

Double-check the bid quantity and price. A common mistake is applying for the wrong lot size, leading to rejection.

Step 6: Authorize Payment via UPI

After submitting the form, you’ll receive a UPI payment request on your UPI app (e.g., PhonePe, Google Pay). Here’s how to complete it:

1. Open your UPI app and check for a payment request from “NSE/BSE IPO” or your broker’s name.
2. Verify the amount matches your bid (e.g., ₹1.2 lakh for 10 lots at ₹120/share).
3. Enter your UPI PIN to authorize the block.
4. You’ll see a confirmation message: “IPO application submitted successfully.”

As of April 2026, UPI payment failures for IPOs are below 2%, down from 5% in 2023, thanks to improved infrastructure.

Step 7: Track Your Application Status

After applying, monitor your application using these methods:

• Broker Dashboard: Most brokers show IPO application status under “Orders” or “IPO” sections.
• Bank Statement: Check your account for the blocked amount (e.g., “Blocked for IPO: ₹1.2 lakh”).
• NSE/BSE Website: Visit NSE India or BSE India and enter your application number.
• SMS Alerts: Banks like ICICI and HDFC send SMS confirmations for blocked amounts.

Applications are typically processed within 1-2 hours. If stuck, contact your broker or bank.

Step 8: Wait for Allotment and Refund (If Applicable)

IPO allotment happens within 6-7 days of the issue closing. Here’s what to expect:

• Allotment: If shares are allocated, the blocked amount is debited. You’ll receive an allotment confirmation via email/SMS.
• Refund: If no shares are allotted, the block is released, and funds are refunded to your account within 6-7 days.
• Listing: Shares are credited to your demat account on the listing date (usually within 10 days of allotment).

In 2026, the average IPO listing time is 8 days, down from 12 days in 2023, due to digital processes.

Common Mistakes to Avoid When Applying for an IPO via UPI

Even small errors can lead to rejected applications. Here are the top mistakes investors make in 2026:

1. Incorrect Demat or PAN Details

SEBI rejects applications with mismatched PAN or demat account numbers. Always cross-verify:

• Your PAN is linked to your demat account (check with your DP).
• Your demat account number is entered correctly (16 digits).
• Your name matches the PAN card exactly (no typos).

As of April 2026, 8% of IPO rejections are due to PAN mismatches.

2. Applying for the Wrong Lot Size

IPOs have a minimum lot size (e.g., 10 shares). Applying for fewer shares than the lot size leads to rejection. For example:

• If the lot size is 10 shares and you apply for 5, your application is invalid.
• Check the IPO’s RHP for the lot size (e.g., “Retail investors can apply for a minimum of 10 shares”).

In 2026, the average lot size is 50 shares, up from 25 in 2023.

3. Not Checking the UPI Payment Status

Always confirm the UPI payment is successful. If the payment fails, your application isn’t submitted. To avoid this:

• Check your UPI app’s transaction history for the IPO payment.
• Save the UPI transaction ID for reference.
• If the payment fails, retry after 5-10 minutes (UPI servers may be busy).

As of April 2026, UPI payment failures for IPOs are rare (<1%) but can happen during peak times.

4. Overlapping Applications

Submitting multiple applications for the same IPO (e.g., via different brokers) can lead to rejection. SEBI flags duplicate applications. To prevent this:

• Apply only once per IPO.
• If using multiple UPI IDs, ensure they’re linked to the same demat account.
• Check your broker’s dashboard for pending applications before reapplying.

In 2026, 3% of retail investors accidentally apply multiple times, leading to rejections.

5. Ignoring the IPO Timeline

IPOs have strict timelines. Missing deadlines leads to automatic rejection. Key dates to note:

• Issue Opening Date: First day to apply (e.g., April 10, 2026).
• Issue Closing Date: Last day to apply (e.g., April 12, 2026).
• Allotment Date: When shares are allocated (e.g., April 18, 2026).
• Listing Date: When shares are credited to your demat (e.g., April 22, 2026).

As of April 2026, the average IPO is open for 3 days.

Tax Implications of Applying for an IPO in India (2026)

IPO investments have tax implications depending on your holding period and gains. Here’s what you need to know:

1. Short-Term Capital Gains (STCG) Tax

If you sell shares within 12 months of listing, gains are taxed at 15% (plus cess and surcharge). For example:

• You buy shares at ₹100 and sell at ₹150 within 12 months.
• Profit: ₹50 per share.
• STCG Tax: 15% of ₹50 = ₹7.50 per share.

As of April 2026, the STCG tax rate remains unchanged from 2023.

2. Long-Term Capital Gains (LTCG) Tax

If you hold shares for more than 12 months, gains are taxed at 10% (above ₹1 lakh profit). For example:

• You buy shares at ₹100 and sell at ₹200 after 13 months.
• Profit: ₹100 per share.
• LTCG Tax: 10% of ₹100 = ₹10 per share (only if total profit > ₹1 lakh).

In 2026, the LTCG tax exemption limit remains ₹1 lakh per financial year.

3. Tax Deducted at Source (TDS)

If you sell shares on a recognized stock exchange (e.g., NSE/BSE), TDS is deducted at 0.1% if the sale value exceeds ₹1 lakh. For example:

• You sell shares worth ₹2 lakh.
• TDS Deducted: 0.1% of ₹2 lakh = ₹200.

TDS is credited to your PAN and can be claimed while filing ITR.

4. IPO Application Fees

Applying for an IPO is free, but brokers may charge a small fee (₹0-200) for processing. For example:

Always check your broker’s fee structure before applying.

Alternatives to UPI for IPO Applications in 2026

While UPI is the most popular method, you can also apply for IPOs using:

1. ASBA via Net Banking

If you don’t use UPI, most banks allow ASBA via net banking. Steps:

1. Log in to your bank’s net banking portal.
2. Go to “IPO” or “Investments” section.
3. Select the IPO and enter bid details.
4. Confirm the block via net banking OTP.

Banks like SBI, PNB, and Bank of Baroda support this method. However, UPI is faster and more convenient.

2. Physical ASBA Forms

You can submit a physical ASBA form at your bank branch. Steps:

1. Download the ASBA form from the SEBI website.
2. Fill in details (PAN, demat account, bid amount).
3. Submit the form at your bank branch with a cheque for the bid amount.
4. The bank blocks the amount and submits your application.

This method is rare in 2026 due to digital adoption, but some rural areas still use it.

3. Stock Exchange Kiosks

NSE and BSE have set up kiosks in major cities where you can apply for IPOs using your demat account. Steps:

1. Visit a NSE/BSE kiosk (e.g., in Mumbai, Delhi, or Bangalore).
2. Provide your demat account details and bid amount.
3. Pay via net banking or UPI at the kiosk.
4. Receive a confirmation receipt.

This method is useful for those without internet access, but kiosks are limited in number.

Comparison of IPO Application Methods (2026)

Frequently Asked Questions