Introduction

IPO applications are accepted only during the bidding period specified for the issue. For retail investors in India, the standard IPO bidding window generally runs from 10:00 AM to 5:00 PM on the final day of the issue, subject to the applicable exchange and issue-specific timelines.

Investors should always check the official cut-off timings for the IPO they intend to apply for.

Answer: Can I apply for an IPO after 5 PM?

Generally, no. A fresh retail IPO bid cannot be submitted once the official bidding window closes at 5:00 PM on the final bidding day. However, the deadline for approving a UPI mandate may extend beyond 5:00 PM for certain IPOs, depending on the applicable issue guidelines and timelines.

Key Takeaways

• Retail investors should submit their IPO applications within the official bidding period, which generally ends at 5:00 PM on the final bidding day.
• New IPO bids are generally not accepted after the official closing deadline.
• UPI mandate approval may have a separate deadline that extends beyond 5:00 PM for certain IPOs.
• Brokers and other intermediaries may impose internal cut-off times earlier than the official exchange deadline.
• Applying in advance can help reduce the risk of technical issues, UPI mandate delays, and problems with blocking funds.

Official IPO Timings in India: Exchange vs. Broker Cut-offs

Normal Market Window (10:00 AM – 5:00 PM)

The application window for an Initial Public Offering (IPO) depends on the schedule specified for the issue. For a standard book-built IPO, applications are generally accepted between 10:00 AM and 5:00 PM during the issue period, with the final bidding day closing at the prescribed time.

The cut-off set by the stock exchange and the internal cut-off set by a broker or bank are different.

• Stock exchange cut-off: The official deadline for submitting bids for the IPO.
• Broker cut-off: The internal deadline imposed by a broker to process and submit applications.
• Bank or intermediary cut-off: The deadline that may apply to processing an application or completing the relevant payment-related steps.

Investors should check both the official IPO schedule and the deadlines specified by their broker or bank.

Why Brokers Stop Accepting Bids Between 3:30 PM and 4:30 PM

Some brokers may stop accepting IPO applications before the official closing time. This allows them additional time to process applications and ensure that eligible bids are submitted within the permitted exchange bidding window.

Therefore, investors should not wait until the last moment to apply.

• Check the IPO application deadline shown by your broker.
• Confirm the official closing date and time of the issue.
• Submit the application early enough to allow for processing.
• Complete the applicable UPI mandate or ASBA fund-blocking process within the prescribed deadline.

What Happens If You Submit an IPO Application After 5 PM?

Case 1: Submitting After 5 PM on Day 1 or Day 2 (After-Market Bids)

If an IPO remains open for bidding on subsequent days, an application submitted after 5:00 PM on an earlier day generally cannot be treated as a bid submitted during that day’s closed bidding window.

However, investors may still be able to apply on the next eligible bidding day, provided the IPO remains open and the application is submitted within the applicable timings.

Some platforms may allow investors to prepare or initiate an application outside the active bidding window. This should not be confused with a successfully submitted bid on the stock exchange.

Investors should:

• Check whether the IPO is still open for bidding.
• Confirm when the broker will next accept applications.
• Verify whether the application has actually been submitted to the exchange.

Case 2: Submitting After 5 PM on the Final Closing Day (Rejected Bids)

Once the official bidding window closes on the final day, a fresh IPO bid generally cannot be submitted for that issue.

Only bids successfully submitted within the permitted bidding period and meeting the applicable requirements can be considered for allotment.

Therefore, investors should not rely on an application initiated after 5:00 PM on the final bidding day as a valid new IPO application.

UPI Mandate Approval After 5 PM: What Are the Deadlines?

The UPI mandate approval process is separate from the initial entry of an IPO bid. Investors who have submitted a valid UPI-based application must approve the mandate within the applicable deadline.

The UPI mandate deadline is not necessarily the same as the 5:00 PM bidding cut-off.

Key points to remember:

• Bid submission: The IPO application must be submitted within the permitted bidding period.
• UPI mandate approval: The mandate must be approved within the deadline applicable to that IPO.
• Fund blocking: The required amount must be blocked successfully through the applicable process.
• Issue-specific timelines: Investors should verify the official instructions for the relevant IPO instead of assuming that every mandate can be approved after 5:00 PM.

Approving a UPI mandate after 5:00 PM may be possible if the applicable deadline has not expired. However, this does not mean that investors can submit a fresh IPO bid after the official bidding window closes.

Common Risks of Last-Minute IPO Applications

Applying close to the deadline can create operational risks that may affect the successful submission or completion of an IPO application.

Common risks include:

• Technical issues: Heavy traffic or technical problems with banking, UPI, or intermediary systems.
• UPI mandate delays: The mandate may not arrive or may not be approved in time.
• Fund-blocking issues: The required amount may not be blocked within the applicable deadline.
• Early broker cut-offs: The intermediary may stop accepting applications before the official exchange deadline.
• Application status confusion: An application initiated on a platform may not necessarily have been submitted successfully to the exchange.

To reduce these risks, investors should submit their applications well in advance, verify the application status, and complete the required mandate or fund-blocking steps within the applicable timelines.