Applying for an IPO is easier than most beginners expect, but the details, such as lots, categories and allotment, cause avoidable mistakes. This guide walks through the process from start to listing, using the recent Jio Platforms IPO as a real example.
What You Need Before You Apply
You need a demat account (see our demat account guide), a bank account linked to a UPI ID, and a PAN-linked KYC with your broker. Make sure the UPI app on your phone is working and that the bank account has the full bid amount, because the money is blocked until allotment.
Step-by-Step: Placing a Bid
1. Open the IPO section of your broker's app or website and select the open issue.
2. Choose the category. Most individuals apply as retail individual investors, which covers bids up to ₹2 lakh in total value.
3. Enter the number of lots and the price. Most retail bidders choose the cut-off price, which means you accept whatever the final issue price is within the band.
4. Enter your UPI ID and submit.
5. Approve the UPI mandate request on your phone before the deadline. If you skip this step, your application is not complete.
Example: the Jio Platforms IPO had a 12-share lot and a ₹1,119 upper price, so one lot cost ₹13,428 and 14 lots (the retail maximum) cost ₹1,87,992.
How ASBA Blocks Your Money
ASBA (Application Supported by Blocked Amount) means your bid amount stays in your own bank account but is blocked. It is debited only if you receive an allotment. For UPI-based bids, you approve a blocking mandate in your UPI app. Unallotted amounts are released after the allotment finalises. There is a UPI transaction limit per IPO bid set by regulators, so check the current limit with your broker if you plan a large application.
Categories and Why They Matter
Issues allocate shares across qualified institutional buyers (QIBs), non-institutional investors and retail investors, and sometimes employees or shareholders of a parent company. Each category has its own quota and its own subscription level. A retail quota subscribed 3 times is much easier than one subscribed 20 times, so look at the retail subscription number, not just the overall figure.
Allotment, Refund and Listing Timeline
After bidding closes, the basis of allotment is finalised, usually the next working day. Refunds or unblocking follow, and shares are credited to your demat account before listing. In the Jio Platforms case, bidding closed on 23 October, allotment was finalised on 26 October and shares listed on 28 October. You can check allotment status on the registrar's website or the NSE and BSE application status pages.
Five Common Mistakes
Ignoring the mandate. Not approving the UPI request means no bid.
Applying blindly on GMP. The grey market premium is unofficial and unreliable.
Multiple applications on one PAN. Duplicate bids on the same PAN are rejected.
Not reading the prospectus. Check the business, valuation and risk factors first.
Treating an IPO as free money. Listings can open below the issue price. See our Jio IPO lessons.
Before you bid, write down why you want the stock and when you would sell. Having a plan before allotment prevents panic decisions on listing day.
Frequently Asked Questions
What is the minimum amount needed to apply for an IPO in India?
It depends on the issue's lot size and price. The minimum is one lot at the upper price band. For example, the Jio Platforms IPO required ₹13,428 for one lot of 12 shares.
Is the money deducted when I apply for an IPO?
No. With ASBA or UPI, the amount is blocked in your bank account and debited only if shares are allotted to you. Otherwise it is released.
How do I check IPO allotment status?
Use the registrar's website for that issue or the application status pages of NSE and BSE with your PAN or application number. Your broker app also shows the result.
Educational content only — not investment, tax or legal advice. Market figures are as reported in the sources named above at the time of writing (November 2026) and change quickly; verify current data and consult a SEBI-registered adviser or chartered accountant before acting.