All Your Key 50 IPO FAQs Answered

1. How to apply for an Initial Public Offering (IPO)?

You can apply for an IPO online through your stockbroker or your bank net banking portal. 

Log in to the application platform and select the active company name from the list. 

Fill in your bidding details like price and quantity. 

Enter your UPI ID or bank details and submit the form to complete the process.

2. How to place bids in the IPO application?

You enter your desired share quantity and price in the bidding section of the application form. Mainboard IPOs allow you to select up to 3 different bid combinations. You must choose quantities that are multiples of the official lot size.

3. What is the cut-off price in IPO applications?

The cut-off price is the final price at which a company decides to issue its shares to retail investors. Selecting this option means you agree to buy the shares at whatever final price the company fixes. This saves you from guessing the right price and ensures your application stays valid.

4. How to pre-apply for an IPO?

Some brokers provide a pre-apply window that opens one day before the official IPO starts. You can log in early and submit your bidding details to the system. The platform holds your application and submits it automatically to the stock exchange as soon as the bidding officially opens.

5. How to modify the bids in the IPO application?

Log in to your trading platform during active market hours between 10:00 AM and 4:45 PM. 

Open your active IPO window and select the specific application you want to edit. 

Change your price or quantity figures and click update to resubmit the form.

6. How to withdraw or delete an IPO application?

Open the IPO section on your broker app during the active three-day bidding window. 

Locate your pending application and select the delete or withdraw option. 

This cancels your bid and notifies the exchange to remove your request from the system.

7. Can I submit applications for SME IPOs through Zerodha?

Yes, you can apply for NSE and BSE SME IPOs through Zerodha using the online UPI process. If you face a payment or mandate failure during an SME application, you cannot use net banking ASBA as an alternate route through the broker platform.

8. What are the listing requirements for SME IPO, and how are they different from mainboard IPOs?

SME companies have smaller business operations and require lower post-issue capital to list compared to large mainboard firms. They list on separate SME platforms of the exchanges, and their public issues do not offer a cut-off price option for retail participants.

9. What is the minimum lot size for individual investors to apply for an SME IPO?

Market regulations fix the minimum investment value for an SME IPO above ₹2 lakh. Individual investors must apply for a minimum of two lots, which automatically places their application inside the HNI segment.

10. What is IPO subscription data, and where can it be found?

Subscription data shows how many times investors have bid for the available shares across different categories. You can track these live numbers on the official websites of the National Stock Exchange and Bombay Stock Exchange during the three-day bidding window.

11. How to Apply for an IPO in Zerodha?

Open the Kite app or website and log in to your account.

Tap on the Bids section from the bottom menu (app) or top menu (web), then select the IPOs tab.

Find the active company name you want to apply for and click the Apply button.

Choose your investor type, enter your UPI ID, and input your share quantity (in multiples of the lot size) along with your bid price. Tick the “Cut-off price” box if you want to bid at the final issue price.

Submit your application. Finally, open your UPI app (like Google Pay or PhonePe) to accept the mandate request and block your funds.

IPO FAQs on UPI Mandates and Payment Queries

12.  Is it possible to apply for an IPO without using UPI?

Yes, you can apply without using UPI by logging into your bank account through internet banking. You can use the ASBA feature where the bank blocks the necessary funds directly inside your savings account without using a UPI application.

13. What is IPO ASBA?

ASBA stands for Application Supported by Blocked Amount. It is a payment system where your bank blocks the required application money inside your own savings account. The funds stay in your account and earn interest until the company finalizes the allotment. The money leaves your account only if you get the shares.

14. Are there any charges to apply for an IPO?

No, stockbrokers and banks do not charge any fee from retail investors to process online IPO applications. The entire process of bidding and blocking funds through UPI or net banking is free of cost.

15. Why has my blocked amount not changed when I modified my IPO bid?

When you modify a bid, your broker sends a fresh mandate request to your UPI app. The original amount remains blocked until you log in to your payment app and approve the new modified mandate. The old block releases only after the system processes the update.

16. Why is the IPO mandate status not updated on Kite?

The update depends on communication between the stock exchange, the National Payments Corporation of India, and your bank. A delay in data transfer between these systems can stop the updated status from showing immediately on your trading screen.

17. Why is there a delay in receiving the IPO mandate on the UPI app?

High traffic on the payment servers on the opening or closing days of the public issue creates processing delays. The networks take time to route the payment request from the exchange down to your individual bank account.

18. How to find the IPO mandate on Google Pay?

Open the Google Pay application and tap on your profile picture located in the top right corner. Select the “Mandates” option from the menu list to view all pending and active IPO payment requests.

19. How to accept the IPO mandate on Phonepe?

Open the Phonepe application and look for a notification bell icon or a pop-up alert on the home screen. Tap on the specific IPO request, enter your secure UPI PIN, and approve the funds block.

20. How do I accept my IPO mandate on ICICI iMobile?

Log in to the iMobile application and navigate to the UPI payment section. Select the “Open Mandates” tab to see your pending IPO requests and tap approve to lock the funds.

21. How to find the IPO mandate on BHIM app?

Log in to the BHIM app and select the “Offers” or “Mandates” section on the main dashboard. Click on the pending tab to find your IPO application request and authorize it with your PIN.

22. Why did the UPI mandate fail even when the IPO was allotted?

This happens when technical issues or server errors hit your bank system at the exact moment the registrar attempts to debit the blocked cash. The registrar still credits the shares to your account because your funds were legally blocked successfully during the application stage.

IPO FAQs on Special Investor Categories and Limits

23. What is the lot size for an IPO?

A lot size is the fixed minimum number of shares that an investor must purchase in a single application. Companies decide this number by keeping the total initial investment value for one retail lot around ₹15,000.

24. Can an IPO be applied for in the HNI category?

Yes, you can apply under the High Net Worth Individual (HNI) category if your total bidding amount stays above ₹2 lakh. The system automatically shifts your category based on your total application value. You can use UPI for amounts up to ₹5 lakh, but you must use net banking ASBA for any amount higher than ₹5 lakh.

25. Can I modify my IPO application under the HNI category?

You can modify your HNI bid to increase the investment amount or share quantity during the bidding window. However, market rules strictly prohibit you from deleting or reducing the size of an application once you enter the HNI segment.

26. What are the reasons for HNI IPO application failure?

HNI applications fail if you select the cut-off price option because HNIs must enter their bid prices manually. Mistakes in matching your PAN card details with your bank account or missing the 4:00 PM HNI deadline on the closing day also lead to rejections.

27. Can a minor apply for an IPO?

Yes, a minor can apply for a public issue if they hold a valid PAN card, a minor demat account, and a linked bank account. If the broker platform does not support minor UPI IDs, you must submit the application through net banking ASBA using the minor bank details.

28. How can an NRI apply for IPOs and rights issues?

Non-Resident Indians (NRIs) can apply by linking their Non-Resident External (NRE) or Non-Resident Ordinary (NRO) bank accounts with their trading account. They must use the net banking ASBA facility of their bank to block application money.

29. How to apply for an IPO in the existing shareholder or employee category?

Open the online application window through your broker and click the apply button. Select “Existing Shareholder” or “Employee” from the investor type dropdown menu. The Registrar and Transfer Agent uses your PAN card to verify your shareholding status or employment records against company files.

30. Is it possible to apply for an IPO in the shareholder, employee and retail categories through Zerodha?

Yes, you can submit separate applications for all three distinct categories through the Kite platform using one single demat account. This is valid provided the company red herring prospectus does not contain specific rules blocking multiple category bids.

IPO Allotment and Listing

31. What happens after a bid for an IPO is placed?

Your broker sends the IPO application information to the stock exchange. The exchange validates the details and initiates a UPI mandate request. Your money gets blocked in your bank account after you approve this request, and your application waits for the official allotment date.

32. How to check the IPO bid and allotment status?

You can check your final status by visiting the official web portal of the assigned Registrar and Transfer Agent. Select the company name from their list and enter either your PAN card number, application number, or DP ID to see your status.

33. How does the allotment process work if the IPO is oversubscribed?

The system uses a computerized lucky draw to distribute shares. The process selects winners randomly, and each lucky applicant gets exactly one minimum lot of shares until the entire retail quota is full.

34. Can I improve my IPO allotment chances?

You cannot alter the random draw system, but you can maximize your chances by applying for one single lot using multiple demat accounts registered under different family members. Bidding at the cut-off price also ensures your application does not get rejected due to pricing changes.

35. How to avoid IPO application rejections?

Ensure that the PAN card linked to your demat account matches the PAN card of the bank account used for payment. Avoid submitting multiple applications for the same person in the same category, and do not use a third-party UPI ID that belongs to someone else.

36. Why is the IPO allotment status not available on the RTA’s portal?

Registrars take time to verify thousands of applications and clear payment records with banks. The data shows up on their portal only after they complete all backend checks and finalize the internal allotment list.

37. When are funds unblocked if the IPO was not allotted?

Banks generally unblock your frozen funds within 24 hours after the company finalizes the share allotment list. If you face a delay, you can submit a written complaint to your bank along with your application number to release the block.

38. How long does it take for IPOs to list on the exchange?

Companies list their shares on the stock exchanges within 3 working days from the official closing day of the bidding process.

39. Why is the listing date displayed on the IPO page different from the actual listing date?

Brokers put tentative dates on their status screens based on early schedules. If a company changes its final processing dates or gets quick regulatory clearances, the real listing date on the exchange moves ahead of the app display.

40. Why are the shares credited for an IPO bid not visible even after receiving confirmation from CDSL?

Your broker takes time to update its back-office records and sync its internal depository data after CDSL credits the shares. The shares show up on your app dashboard late in the evening or on the morning of the official listing day.

41. Why is the average cost for shares allotted in an IPO not displayed?

The platform does not show the purchase cost immediately because the company has not started active trading on the exchange. The system calculates and displays your correct average cost price once the share opens for regular trading on the listing morning.

42. What are Registrar and Transfer agents (RTA)?

An RTA is an independent body appointed by a company to manage the backend data of a public issue. They handle investor applications, process payment instructions, finalize share allotments, and solve investor queries.

43. What is Social Stock Exchange (SSE)?

The Social Stock Exchange is a segment within the main stock exchanges. It helps non-profit organizations and social enterprises raise funds from the public to create social impact instead of generating regular corporate profits.

44. What is Real Estate Investment Trust (REIT), and how to invest in REIT IPOs using UPI?

A REIT is a trust company that owns and operates income-generating real estate properties. You can invest in a REIT IPO through your broker app by selecting the trust name, choosing your lot size, and authorizing the payment via your UPI app up to ₹5 lakh.

45. What are Infrastructure Investment Trusts (InvIT), and how to invest in InvIT IPOs using UPI?

An InvIT is an investment trust that manages long-term infrastructure assets like power plants or roads. You apply for their IPOs exactly like equity shares on your trading app and use your standard UPI ID to block your investment capital.

46. Can I sell IPO shares on the listing day?

Yes, you can sell your allotted shares on the listing day as soon as the regular trading session begins at 10:00 AM. You can place a standard sell order through your trading app exactly like normal shares. Pre-open market sessions from 9:00 AM to 9:45 AM also allow you to place orders to discover the opening price.

47. Why is my bank account showing a negative balance after IPO allotment?

Your bank account shows a negative balance because the system creates a temporary hold on the blocked application money. The bank keeps this amount in a separate lien status inside your account until the registrar takes the final payment. The balance returns to normal once the bank completes the transaction and debits the exact cash.

48. Can I link a third-party bank account to my demat account for IPO applications?

No, you cannot use a bank account or a UPI ID that belongs to another person to apply for an IPO. The stock exchange matches the PAN card details of the demat account with the PAN card details of the bank account. The system rejects your application automatically if these two records do not match perfectly.

49. What is the lock-in period for anchor investors in an IPO?

Anchor investors are large institutional buyers who get share allotments one day before the public issue opens. Market regulations fix a mandatory lock-in period of 30 days for 50 percent of their shares. The remaining 50 percent of their allotted shares face a strict lock-in period of 90 days from the listing date.

50. How do companies use the fresh issue money raised from an IPO?

Companies use the fresh capital according to the specific plans mentioned in their draft prospectus. They utilize these funds to clear corporate debts, buy new machinery, fund business expansion, or pay for general corporate expenses. The money does not go to old owners because it remains inside the business operations.