Introduction

The Indian stock market has seen a rise in retail investor activity. Initial public offerings (IPOS) have become an excellent opportunity to invest in some of the country's leading companies. The ability to apply for an IPO with UPI apps has made the whole process simple, cost-effective, and easy. However, approving the IPO UPI mandate is essential to this process. It allows your bank to block funds for the IPO application. This article will help you find and approve an IPO UPI mandate on different UPI apps to ensure your IPO application is successful.

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What is an IPO UPI Mandate?

An IPO UPI mandate is a digital authorisation sent to your UPI app when you apply for an IPO via a broker or platform. The IPO UPI mandate requests your bank to block an amount in your bank account for the IPO. The funds remain blocked, not deducted, until the IPO allotment process concludes. If you receive shares, the blocked amount is debited; if not, it’s released back to your account. With UPI apps like BHIM, Google Pay, PhonePe, and others, approving this mandate is quick, but finding it can be tricky if you’re unfamiliar with the app’s interface. Here's a step-by-step guide to help you through this experience.

Finding and Approving IPO UPI Mandates on Common UPI Apps

1. BHIM App

The BHIM app, developed by NPCI, is one of the most common UPI apps used to apply for IPOS. To find and approve an IPO UPI mandate:

Step 1: Open the BHIM app and log in using your UPI PIN or biometric authentication.

Step 2: You should see a “Mandates” or “UPI Autopay” option on the homepage. The mandates section will show all active and pending mandates.

Step 3: Confirm the IPO mandate by checking the company name (e.g. "Tata IPO") and the order amount. Click on the mandate and confirm the details, including UPI ID and the validity period.

Step 4: Select “Approve”, enter UPI PIN, and confirm. Upon approving the mandate, the status would change to “Active”.

Tip: Wait 24 hours before contacting support if the mandate is not showing, as processing times can be prolonged. Remember to update the app and ensure funds are in your account.

2. Google Pay

Google Pay is also another common UPI application used for IPO mandates. Here are the steps to approve:

Step 1: Open Google Pay, and go to the “Profile” or “Settings” tab.

Step 2: Look for “One-time Mandate” or “Autopay” in UPI settings. The pending IPO mandates are listed here.

Step 3: Open the IPO mandate, check the details (amount, IPO name, broker UPI ID), and select "Accept" to approve the mandate.

Step 4: Enter your UPI PIN to approve the mandate, and once completed, you will get a successful confirmation.

Tip: If the mandate is not showing in Autopay, check the "Notifications" tab since specific requests were sent as alerts.

 3. PhonePe

PhonePe is the most straightforward application to use when approving an IPO UPI mandate, to start:

Step 1: Open PhonePe and see if there is a pop-up notification regarding the IPO mandate. If not, click on the bell for “Notifications”.

Step 2: Look for the IPO mandate request in “Autopay” or “Pending Request”.

Step 3: Review the information, such as the IPO name and amount blocked, before clicking “Approve.”

Step 4: Type in your UPI PIN to complete the process. Approved mandates will appear in the “Completed” or “Active” autopay.

Tip: Ensure you have a good internet connection to avoid delays in receiving your mandate.

Key Tips for a Smooth IPO UPI Mandate Process

Act Promptly: Approve the IPO UPI mandate before 5 PM on the closing date for the application to be considered valid.

Check Funds: Make sure your bank account has enough balance to satisfy the mandate amount and prevent the application from being rejected.

Check for Errors: Double-check the UPI ID and PIN to prevent the creation of an invalid mandate. If a mandate is rejected, cancel your application, then reapply (avoid doing this on the last day if the mandate is invalid).

Be Patient: It may take a few hours for the mandate request to show up, and if it does not show up in 24 hours, reach out to your broker support.

Update Apps: Always keep your UPI app and trading platform app updated to prevent glitches when you try to apply for an IPO.

Common issues and solutions

Mandate not showing: Make sure to check all tabs (Notifications, Autopay and Mandates) and ensure the UPI ID you used in the application matches the UPI ID in the app (other IDS may show up if you used your bank UPI ID)

Mandate Failure: Rejections often occur due to an invalid mandate, insufficient funds, or an incorrect UPI PIN. Check your fund balance and PIN before retrying the application.

Delayed allotment: SEBI regulations state that if the funds remain blocked after you were allotted shares in the company, it will take 7–10 days to unblock the mandate.

Conclusion

Submitting an IPO using UPI apps will change the face of investing for retail investors in India. Knowing how to execute the IPO UPI mandate should ensure the smooth processing of your application, thus giving you a better chance of getting allotted IPO shares. Now that you know the steps required to approve a mandate for UPI apps (BHIM, Google Pay, PhonePe, or your trading platform), you can move with certainty through the process of getting a mandate approved.

Related Blogs - Apply for IPO using UPI | Cancel an IPO Application | How is an IPO priced | Best Practices to invest in IPO | Invest in IPO without a Demat Account