How to Apply for an IPO through UPI – Complete Step-by-Step Guide

📚 Table of Contents

• Introduction
• What is UPI?
• Who Can Apply for an IPO via UPI?
• How to Generate a UPI ID
• How to Apply for an IPO Using UPI
• IPO Application Charges Using UPI
• IPO Bidding Cut-off Timings
• UPI IPO Transaction Limit
• What is UPI Mandate in IPO?
• Final Words
• FAQs

📘 Introduction

How to Apply for an IPO through UPI : Applying for an IPO (Initial Public Offering) is now easier than ever, thanks to the Unified Payments Interface (UPI). The UPI-based IPO application process allows investors to apply digitally in just a few minutes using their smartphone — no need to visit a bank or fill out paperwork.
This guide provides everything you need to know about how to invest in an IPO through UPI, from generating a UPI ID to accepting the mandate, and understanding investor categories and limits.
 

🧾 What is UPI?

UPI (Unified Payments Interface) is a real-time payment system developed by the National Payments Corporation of India (NPCI) in collaboration with the RBI. It enables seamless fund transfers between bank accounts using a Virtual Payment Address (VPA).

When applying for an IPO using UPI, the system blocks the bid amount in your bank account. Depending on the allotment status, the amount is either debited or released.

👥 Who Can Apply for an IPO via UPI?

UPI is mainly used by the following investor categories:

• Retail Individual Investors (RII): Bidding up to ₹2 lakh.
• High Net-Worth Individuals (HNI): Now allowed to use UPI for bids up to ₹5 lakh (SEBI limit raised in April 2022).
• Non-Resident Indians (NRI): Can apply through UPI if investing up to ₹5 lakh.

🔒 Note: Bids above ₹5 lakh must be done using ASBA (Application Supported by Blocked Amount) via net banking.

🔧 How to Generate a UPI ID?

Follow these steps to create a UPI ID:

1. Download a UPI-enabled app such as Google Pay, PhonePe, Paytm, BHIM, etc.
2. Register your mobile number and link it to your bank account.
3. Create a UPI PIN and set your Virtual Payment Address (e.g., yourname@okhdfcbank).
4. Your UPI ID is now ready to be used for IPO applications.

📝 How to Apply for an IPO Using UPI – Step-by-Step

1. Create your UPI ID on your mobile app or the BHIM app.
2. Log in to your stockbroker’s app or website.
3. Navigate to the IPO section.
4. Select the IPO you wish to apply for.
5. Enter bid details such as quantity and price.
6. Enter your UPI ID (linked to the same bank account as your Demat account).
7. Approve the UPI mandate on your mobile UPI app.
8. Funds will be blocked until allotment.
9. Based on the allotment:

• Full allotment: Funds debited.
• Partial allotment: Only the required amount is debited, the rest unblocked.
• No allotment: Full amount unblocked.

💰 IPO Application Charges Using UPI

Absolutely zero fees! 
No charges are levied by the stockbroker or UPI app for applying in an IPO using UPI. 

⏱ IPO Bidding Cut-off Timings

Retail Investors (Up to ₹2 lakh):
 

• IPO bid time: 10:00 AM to 5:00 PM on the closing day
• UPI mandate must also be approved before 5:00 PM
• Modifications/cancellations allowed till cut-off

HNI/NII Investors (₹2–5 lakh):
 

• IPO bid cut-off: 4:00 PM on the issue closing day
• Can revise bids upward, but not cancel or reduce the amount
• Cannot bid at the "Cut-off Price"

⚠️ It's recommended to apply at least 1 hour before the cut-off to avoid technical rejections.

💳 UPI IPO Transaction Limit

As per the latest SEBI guidelines:

UPI limit per IPO transaction: ₹5 lakh

Bids above ₹5 lakh must be placed through ASBA via net banking.

✅ What is UPI Mandate in IPO?

A UPI mandate is a fund block request initiated by your broker and sent to your UPI app. It authorizes your bank to block the bid amount.

Steps to Accept UPI Mandate:

1. Open your UPI app (BHIM, PhonePe, Google Pay, etc.).
2. Navigate to “Mandates” or “Pending Requests”.
3. Check the IPO request and approve it.
4. Once accepted, funds will be blocked.

⚠️ The UPI mandate must be approved before 5 PM on the final day of bidding. Once approved, it cannot be modified.

🎯 Final Words

Investing in IPOs via UPI is a quick, convenient, and paperless process. Whether you’re a first-time retail investor or an experienced HNI, using UPI helps you stay mobile and manage your bids securely. Just remember the UPI limits and bid timings to ensure a smooth application experience. 
 

📌 FAQs

• Q1: Is applying for an IPO using UPI safe?
• A: Yes, it’s completely secure as the funds are blocked by your bank and not transferred until allotment.
• Q2: Can I apply for multiple IPOs using the same UPI ID?
• A : Yes, as long as your bank account has sufficient balance.
• Q3: What happens if I forget to approve the UPI mandate?
• A: Your IPO application will be considered invalid if the mandate is not approved before the cut-off.