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How to Apply for IPO Using UPI ID

09 Aug 2023


Gone are the days when applying for Initial Public Offerings (IPOs) of companies used to be cumbersome and document-intensive. First, an investor had to jostle hard to fill out a physical IPO application form at the stock exchange. And then, he or she needs to visit his or her bank to submit the ASBA (Application Supported by Blocked Amount) application. 

Fast forward to today, and you can seamlessly apply for the latest IPO within a few seconds. In 2019, the Securities and Exchange Board of India (SEBI) launched the UPI system for all retail investors willing to apply for IPOs through registered stockbrokers, Depository Participants (DPs), or Registrar and Transfer Agents (RTAs).

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This has made the IPO application process quick, easy, and highly convenient. In this article, we will tell you about the steps to apply for an IPO using your UPI ID and the benefits of doing so. But first, let’s discuss what is UPI.

What is UPI?

UPI stands for United Payments Interface. It is an instant payment system developed by the National Payments Corporation of India (NPCI). NPCI is a collaborative venture between the Indian Banks Association (IBA) and the Reserve Bank of India (RBI).

With the help of the UPI system, you can instantly transfer money from your bank account to any other bank account within India. That is why the UPI payment service is also known as the Immediate Payment Service (IMPS).

Today, the UPI payment system has become highly popular in India. It can be used to make utility bill payments, pay for your purchases at merchant outlets, recharge your mobile or broadband service, and much more. 

To make payments through UPI, you are required to download a UPI app on your smartphone and link it to your bank account. As soon as you link your account, a unique UPI ID will be created automatically. Some popular UPI apps in India include Google Pay, Phone PE, BHIM, and Paytm.

How to apply for an IPO using your UPI ID?

As mentioned above, you can apply for an IPO within a few seconds using your UPI ID. All you have to do is follow these steps:

Step 1 – Download a UPI app on your smartphone and link your bank account with it to create a unique UPI ID

Step 2 – Go to the online trading platform of the stockbroker with which you have opened your Demat account. It can be your stockbroker’s mobile trading app or website. In case you haven’t yet opened a Demat account, you can do so for free in a few simple steps with Motilal Oswal

Step 3 – Go to the IPO section in the trading platform to view live IPOs

Step 4 – Select the IPO for which you want to apply for. Then, click or tap on the “Apply Now” button

Step 5 – Enter the basic details, such as your bid price, number of lots, etc., before clicking on the “Continue” button

Step 6 – Enter your unique UPI ID in the designated space. Make sure that you are entering the right UPI ID

Step 7 – You will receive a request on your UPI app to block the funds. Visit the UPI app and accept the request by entering your UPI PIN. As soon as you accept the request, a certain amount will get blocked in your bank account, and your IPO application will complete

Step 8 – The blocked amount will be deducted automatically from your bank account upon allotting shares. In the case of non-allotment, the blocked amount will be unblocked, and you will be able to use it for other purposes

To sum it up

Completing an IPO application through your UPI ID should hardly take a few seconds. Applying for an IPO through UPI is fast, reliable, transparent, straightforward, and convenient. You only need a smartphone, a UPI ID, and a Demat account. You can visit the SEBI website to learn about the list of banks that provide UPI services.

Motilal Oswal is one of the best stockbrokers in India. It makes it easy to open a free Demat account, track upcoming IPOs, and apply for them seamlessly using your UPI ID.


Related Articles: Clearing the confusion from IPOs | 5 Tips for Investing In IPOs | How Is An IPO Valued | What Are the Different Types of IPO |  Is It Good to Invest in An IPO in India

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