Introduction

Investing in an Initial Public Offering (IPO) has become more convenient with the introduction of UPI-based applications. But what is a UPI ID? A UPI ID is essential for completing transactions seamlessly through various mobile applications, allowing users to block funds during the application process and ensuring a secure and efficient transfer of money between bank accounts. The UPI mandate is crucial in the IPO application process, ensuring seamless transactions and fund blocking. In this blog, we will guide you on how to find the IPO mandate on UPI apps and apply it successfully.

Understanding UPI Mandate for IPOs

What is the UPI mandate? A UPI mandate is an authorization request that allows your bank to block the required funds for an IPO application. When you apply for IPO using UPI, you need to approve the mandate on your UPI app to complete the application process. Without this approval, your IPO bid remains incomplete.

ASBA and Its Role in IPO Applications

The Application Supported by Blocked Amount (ASBA) mechanism ensures that the application amount remains in the applicant’s bank account until the IPO allotment is finalized. ASBA applies to both traditional banking applications and UPI-based IPO applications. The ASBA e form is used to apply online, ensuring that the investor’s funds are blocked but not debited until the IPO allotment.

You may also want to know How to Apply for an IPO Using UPI ID

Difference Between ASBA IPO and UPI Mandate

• ASBA IPO: Funds remain blocked in the bank account through a direct bank application.
• UPI Mandate: Funds are blocked via a UPI authorization request, which the investor needs to approve on their UPI app.

Step-by-Step Guide to Apply for IPO Online

If you want to apply for an IPO, follow these steps of the application process:

1. Select the IPO: Visit your broker’s website or app to choose the IPO you want to invest in.
2. Enter UPI ID: Provide your UPI ID while filling out the application.
3. Bid for Shares: Enter the number of shares and bid price as per the IPO details.
4. Submit the Application: Once you submit, you will receive a UPI mandate request.
5. Approve the UPI Mandate: Open your UPI app, check for pending requests, and approve the mandate to block the required funds.

Finding the IPO Mandate on UPI Apps

Many investors struggle to find and approve their UPI mandate. Here’s how you can locate it on popular UPI apps:

• Google Pay: Open Google Pay > Tap on Profile > Check ‘Pending Requests’ under UPI Mandates.
• PhonePe: Go to Notifications > Check for IPO mandate request.
• Paytm: Open Paytm App > Go to UPI & Bank Section > Pending Mandates.
• BHIM UPI: Open the BHIM App > Tap on ‘Mandates’ > Check for the pending IPO mandate.

Ensure that you approve the request before the IPO apply time deadline to avoid application rejection.

Issues with UPI Mandates

While UPI mandates have simplified the IPO application process, they are not without their challenges. Here are some common issues investors might encounter and how to address them:

IPO Application Timings and Cut-Offs

It is crucial to complete the UPI mandate approval within the IPO application window. The general cut-off times are:

• Retail investors: 10 AM – 5 PM (on trading days)
• Last day of IPO bidding: Until 5 PM (may vary by broker)

You may also want to know How to Apply for an IPO Under HNI Category.

BSE and NSE ASBA – Understanding Exchange-Based IPO Applications

For those applying through stock exchanges:

• BSE IPO Form: Investors applying through BSE can check their application status on the BSE website.
• NSE ASBA: Similar to BSE, NSE provides an ASBA-based IPO application system where funds are blocked through banks.

IPO Funding and Payment Options

Some investors opt for IPO funding, where financial institutions provide a loan to apply for a larger number of shares. However, retail investors generally use ASBA or UPI-based payment systems to avoid interest costs.

Conclusion

Applying for an IPO has become simpler with how to apply IPO online methods using UPI mandates. By understanding ASBA IPO, NSE ASBA, and the process of IPO online apply, investors can efficiently participate in IPOs without hassle. Ensure that you approve your UPI mandate on time to avoid missing out on investment opportunities.

For a seamless experience, always double-check your application details and keep track of your UPI mandates to complete your IPO application successfully!

At Jainam Broking, we strive to make your IPO investment journey smooth and hassle-free. Our expert services and insights help you stay updated with the latest IPOs and ensure a seamless application process.

So, are you planning to Apply IPO? If yes, you are at the right place! 

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