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.
Before you start
- 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
- 1
Open Zerodha Console
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.
- 2
Navigate to Portfolio, then IPO
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.
- 3
Read the prospectus
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.
- 4
Click Apply and enter bid details
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.
- 5
Approve the UPI mandate
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.
- 6
Edit, withdraw, or check status
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.
- 7
Wait for allotment
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.
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.
FAQs
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
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