Published 20 July 2026 · By the PCJ Desk · about 6 min read · General educational information, not investment advice.
An IPO (Initial Public Offering) is when a company first sells shares to the public and lists on the exchanges. Applying is simple once you have a demat account — you can apply online with UPI or via ASBA through your bank. Here is how it works.
What you need before you apply
A demat and trading account, a UPI ID (or net-banking with ASBA), and funds in your bank. You do not pay upfront — the application amount is only blocked in your bank account and debited only if shares are allotted.
Understanding lot, price band and cut-off
Shares are applied for in lots (a fixed minimum quantity). The company sets a price band (e.g. ₹100–105); retail investors usually apply at the cut-off price, meaning you accept the final issue price. Retail applications are capped at ₹2 lakh per PAN.
How to apply (step by step)
1. Open the IPO section in your trading app or the PCJ IPO page. 2. Select the IPO and number of lots. 3. Enter your UPI ID and submit — or choose ASBA via net-banking. 4. Approve the mandate in your UPI app; the amount is blocked. 5. Wait for allotment; if you get shares, the amount is debited and shares are credited to your demat, otherwise the block is released.
How allotment works
If an IPO is oversubscribed (more demand than shares), allotment to retail is done by a lottery among valid applications — applying for more lots does not guarantee allotment. Shares are credited before listing day, when they begin trading on NSE/BSE.
How to check allotment status
Check on the registrar’s website or the NSE/BSE IPO pages using your PAN or application number; your broker also notifies you.
Frequently asked questions
Is money deducted immediately?
No — with UPI/ASBA the amount is only blocked and debited only on allotment.
Does applying for more lots improve my chances?
In an oversubscribed retail category, allotment is by lottery, so extra lots do not guarantee shares.
Can I apply for multiple IPOs?
Yes, but only one application per PAN per IPO; multiple applications on the same PAN are rejected.
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