IPO Application Process: Complete Guide for Investors

IPO Application Process

What is an IPO Application?  
An IPO application is the process through which investors submit bids to buy shares during a company's initial public offering (IPO). Investors must complete and submit their applications once the IPO opens and before it closes. This process is often referred to as IPO bidding.

In India, IPO applications can be submitted in two ways:

Online IPO Application: Through net banking, mobile banking apps, or stockbroker platforms using UPI or ASBA as the payment method.

Offline IPO Application: By submitting a physical application form at registered brokers or self-certified syndicate banks (SCSBs).

IPO Application Process  
Investors can apply for an IPO through brokers, exchanges, or SCSBs using UPI or ASBA facilities. Only one IPO application per PAN number is permitted. Submitting multiple applications under the same PAN can lead to rejection, unless different categories like shareholder or employee categories are involved.

How to Apply for an IPO

1. Log in to your broker or bank’s online IPO platform.
2. Choose the IPO you wish to apply for.
3. Fill out the IPO application form with required details.
4. Review the form carefully.
5. Submit the application.
6. Make the payment through UPI, ASBA Net Banking, or provide account details in the physical form.

IPO Application Categories

IInvestors must select an appropriate category when applying for IPO shares. Different categories have different reservation quotas and allotment rules:

Important:

• One IPO application per PAN per category.
• Retail investors cannot apply under multiple investor categories (RII, sNII, bNII simultaneously).
• However, combinations like Employee + Shareholder applications are permitted.

IPO Bidding Options and Limits  
Multiple applications can be made across certain categories under the same PAN with some restrictions:

Note: Employees often get a discount if bidding is up to ₹2 lakhs. Check the offer document for details.

IPO Application Time

IPO issues are typically open for at least 3 days and up to 10 days.

• Application Window: 10:00 AM to 5:00 PM on working days.
• Online Applications: Most banks and brokers accept bids 24/7 while the IPO is open, but they forward them during market hours.
• Last Day Cut-off Times:

• SBI Bank: 2:00 PM
• ICICI Bank: 3:00 PM
• HDFC Bank: 3:00 PM
• Axis Bank: 3:00 PM
• Kotak Bank: 2:00 PM

Important Timings  
Opening Time: 10 AM (IPO Opening Day)

Cut-off Time: 5 PM (IPO Closing Day)

IPO Application Charges

There are no charges for applying for an IPO through banks or brokers. They earn commissions from the issuing companies, not from investors.  
Brokerage fees apply only when selling IPO shares later — many brokers like Angel One offer zero delivery brokerage.

IPO Application Form

The IPO application form is a two-page document containing:

• Applicant’s personal and bid details.
• Offer-specific information.
• Instructions for filling and submitting the form.

Online applicants do not need to fill out a physical form — data is transmitted directly through API integrations with the exchanges.

IPO forms can be downloaded from the BSE and NSE websites.

IPO Application Number

Every IPO application is assigned a unique Application Number, which:

• Helps investors track their application status.
• It is generated immediately for online applications after submission.
• It is pre-printed on the physical forms for offline applications.

IPO Application Rules

Key rules investors must follow when applying for an IPO:

• One application per PAN is allowed.
• Third-party payments are discouraged but sometimes accepted.
• Applications become valid only after funds are blocked or debited.
• UPI is allowed only for Retail investors.
• ASBA is available for Retail, NII, and QIB investors.
• Only Retail investors can apply at the Cut-off Price.

Quick IPO Bidding Rules  
 

IPO Application Status

Investors can track their IPO application status through:

• Their broker's website or mobile app.
• NSE or BSE websites.

Application Status Stages  
 

• Application under process
• Application executed
• UPI mandate pending/approved
• Payment received by the bank
• Bid successfully submitted

Checking IPO Status

1-NSE IPO Status Portal

• Requires PAN registration.
• View IPO bids and allotment status.

2-BSE IPO Status Portal

• Select IPO, enter PAN or Application number.
• Complete CAPTCHA and view the status.

Summary 

📈 IPO Application Process Timeline

Step-by-Step IPO Application Flow:

1. Issue Opens  
IPO is open for subscription (Minimum 3 days, Maximum 10 days).

2. Choose Application Method   
- Online (via netbanking, broker app, UPI)    
- Offline (submit physical IPO form)

3. Fill the IPO Application Form   
- Enter PAN, Demat details, and bid quantity/price.    
- Choose investor category (RII, NII, QIB, Employee, Shareholder).

4. Payment Process  
- Online: Block funds via UPI or ASBA Net Banking.    
- Offline: Funds are blocked after physical form submission through ASBA.

5. Application Submission   
- Broker/Bank sends your application to the Exchange.

6. Receive IPO Application Number    
- Track your application status using this unique number.

7. Application Verification by Exchange

- Exchange verifies details and the payment block.

8. IPO Bidding Closes   
- Last day cut-off time: Applications accepted until ~5 PM (varies by broker/bank).

9. IPO Allotment Process   
- Basis of Allotment finalised within 6 days after closing.

10. Check IPO Application & Allotment Status  
- Check status on Broker, NSE, or BSE website using PAN/Application Number.

✅ Pro Tip: Apply early and use UPI or ASBA to increase chances of smooth allotment!

Final Thoughts  
Applying for an IPO is a straightforward process if you follow the rules carefully. Ensure you use the correct payment method, apply only once per category, and track your application status. With the right steps, you can participate successfully in promising IPO opportunities.