How to apply for an IPO through Zerodha
An Initial Public Offering (IPO) is when a company sells shares to the public for the first time, listing them on a stock exchange shortly after. In India, retail investors apply through ASBA (Applications Supported by Blocked Amount): the bid amount stays in your bank account and is only debited if shares are allotted. Zerodha routes the entire flow through its Console portal using a UPI mandate.
Overview
Zerodha routes IPO applications through Console at console.zerodha.com. The bid uses a UPI mandate, so the funds stay in your bank account in a blocked state until allotment is announced. If shares are allotted, the bank debits exactly the allotted amount and the rest is released; if not, the entire amount is released back the same way.
What you need
- Funded Zerodha demat account
- PAN linked to your funding bank account
- UPI ID (BHIM, GPay, PhonePe, or Paytm)
- Bank balance at least equal to the bid amount
- UPI app installed on your phone to approve the mandate
The 7 steps
Visit console.zerodha.com on a laptop, or open the Kite app on your phone and tap your profile, then Console. Sign in with your client ID, password and TOTP.
In Console, open the Portfolio menu and click IPO. The page lists every open IPO with its bid window, price band, lot size, and total issue size.
Tap the company name to open the Red Herring Prospectus (RHP) and the issue details. The prospectus is dense; the sections that matter most for a bid decision are Risk Factors, Objects of the Issue, and Basis for Issue Price.
Pick a lot quantity (multiples of the issue's minimum lot). Enter a bid price within the price band, or tick the Cut-off box to automatically bid at the upper end. Enter your UPI ID exactly as registered with your bank.
Your bank sends a mandate request to the UPI app on your phone within a few minutes. Open the app and approve it. The bid amount is now blocked in your bank account.
Use Portfolio, then IPO, then My Applications. You can revise the price or quantity or withdraw the bid any time before 4:30 PM IST on the closing day.
Allotment is announced T+6 working days after the bid window closes. If allotted, shares appear in your demat on listing day; if not, the blocked funds are released back to your bank account.
Portfolio → IPO → My Applications in Console before the cutoff.After the bid
If allotted, listing day usually opens at a discovery price set by the pre-open call auction. Trading begins at 10:00 AM IST; there is no lock-in for retail investors. If not allotted, the UPI mandate is released within one to two working days and the money returns to your bank account automatically.
Frequently asked
Can I apply for the same IPO from multiple accounts?
No. SEBI rules permit only one application per PAN. Multiple applications from the same PAN are rejected and the entire amount refunded.
What if my UPI mandate fails?
The bid is rejected. Common causes are a wrong UPI ID, the mandate timing out before approval, or bank-side issues. You can resubmit before the cutoff.
Can I bid the upper price band manually instead of using cut-off?
Yes. Entering the exact upper-band price is functionally equivalent to ticking cut-off. If the final price is set above the band (rare), only cut-off bids are accepted.
When does the money come back if I do not get an allotment?
The mandate is released within one to two working days after allotment. Some bank apps show it as unblocked sooner than the funds become visible.
See also
- What is a demat account
- How to read a Red Herring Prospectus
- Why some IPOs are oversubscribed
- Listing day and pre-open call auction
References
- Zerodha Support, How to apply for IPOs. support.zerodha.com/category/trading-and-markets/ipo/ipo-application
- SEBI, Issue of Capital and Disclosure Requirements Regulations, 2018
- NPCI, UPI 2.0 specifications, one-time mandates
- Investor Education and Protection Fund, IPO investor guidelines