Did you know that applying for an IPO through Zerodha is completely free and can be done in less than 5 minutes from your smartphone?
Initial Public Offerings (IPOs) present exciting investment opportunities, but many investors miss out simply because they’re unsure how to apply. Whether you’re a seasoned trader or a first-time investor, understanding the application process is crucial for participating in these market opportunities.
In this comprehensive guide, you’ll learn exactly how to apply for IPO through Zerodha using both the UPI method and the ASBA method. We’ll cover step-by-step instructions for Kite app and Kite web, explain the bid submission process, and share essential tips to maximize your allotment chances.
Let’s get started.
Understanding IPO Application Methods in Zerodha
Zerodha offers two primary methods for applying to IPOs: the UPI method and the ASBA (Application Supported by Blocked Amount) method. Each method has its own advantages, and choosing the right one depends on your banking preferences and convenience.
The UPI method is the most popular choice among Zerodha users because it’s fast, free, and works seamlessly with any UPI-enabled bank account. The ASBA method, on the other hand, requires internet banking access or a physical form submission to your bank.
Both methods block your funds temporarily until share allotment. If you receive shares, the amount gets debited from your account. If you don’t receive allotment, your funds are automatically unblocked.
Method 1: Applying for IPO Using UPI (Recommended)
The UPI method is the fastest and most convenient way to apply for IPOs through Zerodha. You can submit your application directly from the Kite platform using any supported UPI app like Google Pay, PhonePe, Paytm, or your bank’s UPI app.
Important: You must use a UPI ID that’s mapped to your own bank account. The bank account doesn’t need to be linked to your Zerodha trading account, but it must belong to you. Applications using someone else’s UPI ID will be rejected.
How to Apply for IPO Using Kite Mobile App
The Kite mobile app provides the most convenient way to apply for IPOs on the go. The interface is designed for quick applications, making it perfect for busy investors who want to participate in IPOs from anywhere.
Step-by-Step Process for Kite App
Step 1: Access the Bids Section
Open the Kite mobile app on your smartphone and log in using your Zerodha credentials. Once you’re on the home screen, look at the bottom navigation menu and tap on “Bids.” This section displays all your active bids and available IPO opportunities.
Step 2: Select Your IPO
You’ll see a list of ongoing IPOs currently open for application. Each IPO listing shows key details like the company name, price range, lot size, and closing date. Scroll through the list and select the IPO you want to apply for by tapping on it.
Step 3: Initiate the Application
After selecting your desired IPO, tap on the “Apply” button. The application form will open, displaying all the necessary fields you need to complete. Review the IPO details one more time before proceeding.
Step 4: Enter Your UPI ID
In the UPI ID field, carefully enter your UPI ID. This should be in the format yourname@bankname (for example: johnsmith@okaxis or priya@ybl). Double-check for any typos, as an incorrect UPI ID will result in application rejection.
Step 5: Enter Bid Quantity
Enter the number of shares you want to apply for in the Quantity field. Remember, your quantity must be a multiple of the lot size. For example, if the lot size is 50, you can apply for 50, 100, 150 shares, and so on.
Step 6: Set Your Bid Price
Enter your bid price or select the “Cut-off” option. If you choose cut-off, you’re agreeing to pay whatever the final issue price is set at. Your price must be within the issue price range specified by the company.
Step 7: Accept the Undertaking
Read the terms and conditions, then tap on the undertaking tick box to confirm that you agree to the IPO application terms. This is a mandatory step before submission.
Step 8: Submit Your Application
Swipe the “Submit” button to send your application. The app will process your request and prepare the UPI mandate for fund blocking.
Step 9: Approve the UPI Mandate
You’ll receive a notification on your UPI app (Google Pay, PhonePe, Paytm, or your bank’s app) asking you to approve the mandate. Open your UPI app, verify the details, and approve the mandate. This blocks the required funds in your account until allotment.
Pro tip: Keep notifications enabled for your UPI app to receive instant alerts when mandate approval is required. You must approve the mandate before 5 PM on the IPO closing day.
How to Apply for IPO Using Kite Web Platform
The Kite web platform offers a desktop experience for applying to IPOs, ideal for investors who prefer working on larger screens or want to manage multiple applications simultaneously. The web interface provides more screen space to review IPO details thoroughly.
Step-by-Step Process for Kite Web
Step 1: Log In to Kite Web
Open your web browser and navigate to kite.zerodha.com. Enter your User ID and Password to access your trading account. Complete the two-factor authentication if prompted.
Step 2: Navigate to Bids Section
Once logged in, look at the top navigation menu of the Kite platform. Click on “Bids” to access the section where all IPO opportunities and your existing bids are displayed.
Step 3: Access IPO Listings
Within the Bids section, click on the “IPO” tab. This displays all currently available IPOs along with detailed information including issue dates, price bands, minimum application amounts, and company details.
Step 4: Choose Your IPO
Review the list of available IPOs and click on “Apply” next to the IPO you wish to invest in. A detailed application form will open with all the necessary fields.
Step 5: Select Investor Type
From the dropdown menu, select your investor type. Most individual investors will select “Individual.” Other options include HUF (Hindu Undivided Family) and other entity types depending on your account configuration.
Step 6: Enter Your UPI ID
Carefully type your UPI ID in the designated field. Ensure there are no spaces or typos. Your UPI ID should be in the format yourname@bankname (example: investor@okicici or trader@ybl).
Step 7: Specify Quantity and Price
Enter the quantity of shares you want to apply for. The system will show you if your quantity is valid based on the lot size. Then, enter your bid price within the issue price range, or select “Cut-off” to accept the final issue price.
Step 8: Review and Submit
Review all the details you’ve entered, including your UPI ID, quantity, and price. Once you’re satisfied everything is correct, click the “Submit” button to process your application.
Step 9: Complete UPI Authentication
Open your UPI app on your smartphone. You’ll receive a notification requesting mandate approval for the IPO application. Verify the amount and IPO details, then approve the mandate to block the funds in your account.
Important reminder: You can accept the UPI mandate until 5 PM on the IPO closing day. Make sure to complete this step promptly to avoid your application being rejected due to non-approval.
Method 2: Applying for IPO Using ASBA
ASBA (Application Supported by Blocked Amount) keeps your application money in your bank account while temporarily blocking it until share allotment. This method requires either internet banking access or submission of a physical form to your bank.
Your bank must be designated as a Self-Certified Syndicate Bank (SCSB) to use the ASBA method. Most major banks in India support ASBA for IPO applications.
Online ASBA Application Through Internet Banking
The online ASBA method is convenient if you prefer managing your IPO applications through your bank’s portal rather than through Zerodha.
Step 1: Access Internet Banking
Log in to your bank’s internet banking portal using your username and password. Navigate to the investment or IPO section. The exact location varies by bank but is typically found under “Investments,” “IPO,” or “ASBA” sections.
Step 2: Locate IPO Application Section
Look for options like “Apply for IPO,” “IPO Application,” or “ASBA Application.” Click on it to view the list of currently available IPOs.
Step 3: Enter Personal Details
Fill in your personal information as required by the form. This typically includes your name, PAN number, and contact details. Ensure all information matches your official documents.
Step 4: Provide Demat Account Information
This is crucial for ASBA applications. Enter your demat account details exactly as follows:
- Demat ID: Your 16-digit demat account number. You can find this by visiting console.zerodha.com/account/demat and copying the number displayed.
- Depository: Select “CDSL” (Central Depository Services Limited) from the dropdown menu.
- DP Name: Enter “Zerodha” or select it from the list if provided.
Step 5: Enter Bid Details
Specify the number of shares you want to apply for and your bid price. Follow the same rules as the UPI method: quantity must be a multiple of lot size, and price must be within the issue price range.
Step 6: Confirm Fund Blocking
Review all details and confirm the application. Your bank will immediately block the required funds in your account. You’ll receive a confirmation message or email with your application reference number.
Offline ASBA Application Through Bank Branch
The offline method is suitable if you prefer physical documentation or if your bank doesn’t support online ASBA applications.
Step 1: Download the ASBA Form
Visit the official NSE website or BSE website and download the blank ASBA form. You can also collect this form from your bank branch. Make sure you download the latest version of the form.
Step 2: Print and Fill the Form
Print the form on a clean white sheet. Use blue or black ink pen to fill out all sections clearly and legibly. Avoid overwriting or making corrections.
Step 3: Complete All Required Sections
Fill in the following information accurately:
- Personal details (name, address, PAN, contact number)
- Demat account details (16-digit Demat ID, CDSL as depository, Zerodha as DP name)
- Bid quantity and price
- Bank account details for fund blocking
- Category of investor (Individual, HUF, etc.)
Step 4: Submit to Your Bank Branch
Visit your bank branch and submit the completed form at the designated counter. Your bank must be a Self-Certified Syndicate Bank (SCSB) to accept ASBA applications. Most major banks in India have this designation.
Step 5: Collect Acknowledgment
The bank will verify your form and provide an acknowledgment receipt. Keep this receipt safe as it contains your application reference number, which you’ll need to track your application status.
Important note: Offline ASBA applications take longer to process. Submit your form well before the IPO closing date to ensure timely processing.
Understanding the Bid Submission Process
Zerodha allows you to place up to three bids in a single IPO application. This feature gives you flexibility in pricing and increases your chances of receiving allotment at different price points.
Each bid must meet these requirements: the price should be within the issue price range, and the quantity must be a multiple of the lot size. The system will block funds based on your highest bid amount.
How Multiple Bids Work: A Practical Example
Let’s understand this with a real scenario. Suppose an IPO has a price range between ₹100 and ₹105 per share, and you want to maximize your allotment chances:
- Bid 1: 10 shares at ₹102 (Amount required: ₹1,020)
- Bid 2: 150 shares at ₹101 (Amount required: ₹15,150)
- Bid 3: 50 shares at Cut-off price of ₹105 (Amount required: ₹5,250)
In this example, ₹15,150 would be blocked from your account because it’s the highest amount among all three bids. Here’s which bid gets considered based on the final issue price:
- If the issue price is ₹103 or higher: Bid 3 is eligible (50 shares at cut-off price)
- If the issue price is ₹102: Bid 3 is eligible (larger quantity between Bid 1 and Bid 3)
- If the issue price is ₹100: Bid 2 is eligible (largest quantity among all three bids)
Strategic tip: Use the cut-off price option in at least one bid to ensure you’re considered for allotment regardless of the final issue price. This strategy works well when you’re confident about the company and don’t want to miss out due to pricing.
Pre-Apply Window and Application Timing
Zerodha offers a pre-apply window that opens one day before the official IPO opening date. This feature allows you to submit your application early and avoid last-minute rushes.
Your allotment chances remain exactly the same regardless of when you apply during the IPO period. Applying on day one doesn’t give you any advantage over applying on the closing day. The allotment is determined by demand, category, and lottery, not by application timing.
For mandate processing timelines, keep these rules in mind: Orders placed between 10 AM and 4:30 PM receive mandates the same day. Orders submitted after 4:30 PM receive mandates the following day. Plan accordingly to ensure your UPI mandate gets approved before the IPO closes.
Essential Requirements and Restrictions
Before applying for an IPO through Zerodha, ensure you meet these requirements and understand the key restrictions:
Account and PAN Requirements
You can apply for IPOs even if your Zerodha account is marked as dormant. However, you won’t be able to sell the allotted shares until you reactivate your account by completing the required KYC updates.
Critical restriction: You cannot apply for the same IPO multiple times using different demat accounts linked to the same PAN number. All such duplicate applications will be rejected automatically. This rule is enforced by stock exchanges to prevent manipulation.
Account Type Compatibility
Different account types have different application methods available:
- Individual accounts: Can use both UPI and ASBA methods through Kite app, Kite web, or bank portals
- HUF (Hindu Undivided Family) accounts: Can use UPI and ASBA, but must map the HUF bank account to a UPI ID for UPI method
- Minor accounts: Can apply using both UPI and ASBA methods online. The guardian manages the application on behalf of the minor
- Company, partnership, LLP, AOP, trust, and society accounts: Can only apply through ASBA method. UPI method is not available for these entity types
Demat Account Information
When applying through ASBA or providing demat details, you’ll need this information:
- Demat ID: Your 16-digit demat account number (available at console.zerodha.com/account/demat)
- Depository: CDSL (Central Depository Services Limited)
- DP Name: Zerodha
Keep this information handy before starting your IPO application to avoid delays. You might want to save a screenshot or write down these details for quick reference.
Checking Upcoming and Active IPOs
Staying informed about upcoming IPOs helps you plan your investments and research companies before applying. Zerodha provides an updated list of all IPOs on their platform.
To check upcoming IPOs, visit the Bids section on Kite and navigate to the IPO tab. You’ll see details including the issue date, price range, lot size, minimum investment amount, and company information for each offering.
Research each company thoroughly before applying. Review the Draft Red Herring Prospectus (DRHP), check financial statements, understand the business model, assess market conditions, and read analyst reports. Never apply for an IPO based solely on hype or recommendations from unverified sources.
Frequently Asked Questions (FAQs)
Can I apply for an IPO using someone else’s UPI ID?
No, you must use a UPI ID mapped to your own bank account. Applications using another person’s UPI ID will be rejected by the registrar.
Does the bank account need to be linked to my Zerodha account?
No, you can use any bank account that belongs to you for UPI applications. It doesn’t need to be your primary or secondary account registered with Zerodha.
How many times can I apply for the same IPO?
You can apply only once per IPO per PAN. Multiple applications using different demat accounts with the same PAN will be rejected by the registrar.
When should I approve the UPI mandate?
You must approve the UPI mandate before 5 PM on the IPO closing day. Applications with unapproved mandates will be rejected.
What happens if I don’t get allotted shares?
If you don’t receive share allotment, the blocked amount automatically gets unblocked and returns to your available balance within 3-5 working days after the allotment date.
Can I modify my IPO application after submission?
Yes, you can modify or cancel your IPO application before the issue closes. Go to the Bids section in Kite and select modify or cancel options next to your application.
Is there any charge for applying for IPOs through Zerodha?
No, applying for IPOs through Zerodha using the UPI method is completely free. There are no application charges, transaction fees, or hidden costs.
How do I know if my application was successful?
You’ll receive notifications about your application status in the Kite app. Check your bid status in the Bids section under IPO for real-time updates.
What is the difference between Kite app and Kite web for IPO applications?
Both platforms offer the same functionality. Kite app is convenient for mobile users and on-the-go applications, while Kite web provides a larger screen experience for desktop users. Choose based on your preference.
Can I apply for multiple IPOs simultaneously?
Yes, you can apply for multiple different IPOs simultaneously as long as you have sufficient funds in your bank account to cover all applications.
Final Thoughts
Applying for IPOs through Zerodha is a straightforward process once you understand the steps involved. Whether you choose the Kite mobile app for quick applications or the Kite web platform for detailed review, both methods provide seamless IPO application experiences.
The UPI method offers the fastest and most convenient way to participate in IPO offerings, while the ASBA method provides an alternative for those who prefer traditional banking channels or have entity accounts that require this method.
Remember these key takeaways: always use your own UPI ID, apply within the price range and lot size requirements, approve your UPI mandate before 5 PM on the closing day, never apply multiple times for the same IPO using the same PAN, and conduct thorough research before investing in any IPO.
With Zerodha’s user-friendly platform, zero application fees, and multiple application methods, you’re now equipped to start participating in IPO investments and potentially benefit from exciting market opportunities.
Ready to apply for your first IPO? Log in to Kite app or Kite web now and check the list of upcoming IPOs. For more investment guides, trading tips, and market insights, explore our other articles on LaughingQuill.com.