How IPO Applications Work

ASBA means Application Supported by Blocked Amount. The application money remains blocked in the investor's bank account while the IPO is processed and is debited only for shares allotted. The unneeded amount is subsequently unblocked.

After an eligible application is submitted through an intermediary, a mandate request is sent to the UPI app linked to the application. The investor must verify the amount and approve it before the applicable deadline. Merely submitting the bid without a valid mandate approval can make the application invalid.

For eligible retail applications in a book-built issue, selecting cut-off indicates willingness to pay the final discovered issue price within the price band. It avoids the bid becoming invalid solely because the final price is above a specific lower bid price.

The lot size is the minimum number of shares in one bid unit. Applications must generally be made for one lot or permitted multiples, while also staying within the monetary and category limits applicable to the investor.

Eligible bids can generally be revised during the issue period, subject to category rules, platform cut-offs and the stage of the issue. QIB withdrawal rules differ. Any modification should be confirmed in the final exchange-recorded bid.

Multiple applications in the same issue using the same PAN may be treated as duplicate applications and rejected, subject to permitted exceptions described in the offer document. Using several broker accounts does not create several independent PAN identities.

Common causes include an unapproved or expired UPI mandate, mismatched PAN or demat details, insufficient available balance, duplicate applications, an invalid bid quantity or price, category errors, or submission after an intermediary's cut-off.

No. Pre-apply stores or schedules bid instructions before the issue opens. The final bid and fund-blocking mandate must still be successfully created and accepted when bidding becomes available.