By BillCut
Last updated: 1 November 2026
The IPO application through UPI ASBA process works like this: you place a bid through an intermediary using your UPI ID, you get a block request on your UPI app, you approve it with your UPI PIN, and your bank holds the bid amount until allotment is finalised. If you get shares, that amount is debited. If not, it is released. This guide explains each step. It does not say whether anyone should apply.
What is ASBA and how does UPI fit in?
ASBA stands for Application Supported by Blocked Amount. Your money stays in your own bank account, and the bank blocks only the amount needed for the shares you bid for. NSE notes that ASBA has been mandatory for all issues opening from 1 January 2016, and that UPI was added as a payment option for retail investors applying through intermediaries such as brokers and depository participants. See the NSE page on ASBA procedures and SEBI’s page on IPO through ASBA.
What do I need before I bid?
- A bank account with a bank on SEBI’s list of Self Certified Syndicate Banks.
- A UPI ID on an app and handle that support public issues. SEBI’s FAQ says the ID can be at most 45 characters long.
- A demat account, since shares are credited to it after allotment.
- A mobile number that matches your bank and UPI records.
SEBI’s FAQ says to apply using only the UPI ID, not an account number with IFSC. It also warns that using a third party UPI ID or bank account can lead to the application not being considered for allocation. Use your own accounts only.
What are the steps from bid to allotment?
- Read the offer document. The price band, lot size and dates are in the Red Herring Prospectus.
- Place the bid. You enter the number of shares and a price within the band through your broker or other intermediary, along with your UPI ID.
- Receive the block request. The request arrives on the UPI app linked to that ID. Check that the merchant is shown as verified and that the bid details match.
- Approve with your UPI PIN. The PIN is needed once, to confirm the request. A wrong PIN declines the transaction and you must start again through your intermediary.
- Funds are blocked. The amount stays blocked until allotment is finalised. It remains in your account and your bank still shows it as yours.
- Allotment is decided. The company, lead managers, registrar and exchange fix the basis of allotment.
- Debit or release. Shares are credited to your demat account, and money is debited only for what was allotted.
The official wording and rules for each step are in SEBI’s FAQ on use of UPI with ASBA.
What if I need to change my bid?
Block request values cannot be edited inside the UPI app. Any change goes through your intermediary, and you then receive and approve a fresh request. SEBI’s investor material says you can revise a bid before the book closes. Each PAN holder can make only one application in an IPO.
How is allotment decided?
If the issue is oversubscribed, shares are allotted on a proportionate basis or by a lottery system. The basis of allotment is finalised by the company with the lead managers, registrar and stock exchanges. You are told by SMS, email, post or on the registrar’s website.
When is my money released?
| Outcome | What happens to blocked funds |
|---|---|
| No allotment | The blocked amount is unblocked |
| Part allotment | Money is debited for the allotted value and the rest is unblocked |
| Full allotment | The bid amount is debited |
| No shares and no debit | Funds are released when the mandate period expires |
Because the money is blocked and not paid out, SEBI’s investor page notes there is no refund to chase in case of non allotment. If you are debited more than the allotted value, SEBI’s FAQ says to raise a complaint quoting the Unique Mandate Number. SEBI’s investor presentation also describes compensation for opportunity loss caused by bank failures, with claims to be made within three months of the listing date. The full terms are in the SEBI investor presentation.
Things to plan for before the issue closes
Blocked money is not available for other use, so keep your regular dues in mind. A block for a bid can leave less in the account for an EMI or a card payment due the same week. Failed auto debits can bring charges. Keep enough balance for fixed payments, and note the timelines in the offer document, because requests not approved in time lapse.
If your monthly dues across cards and loans are making cash planning hard, you can Check your options with BillCut. Related reading on this site: UPI for IPOs and bills, demat account basics for beginners and how UPI blocking mandates work.
An illustrative example
This example is illustrative only and uses made up numbers. Say a bid of Rs 15,000 is approved. Your bank blocks Rs 15,000. If no shares are allotted, the Rs 15,000 is unblocked. If shares worth Rs 10,000 are allotted, Rs 10,000 is debited and Rs 5,000 is unblocked.
How BillCut can help
BillCut is a balance transfer and debt reduction platform. It works with lending partners to help eligible borrowers move high interest dues, such as credit card balances and personal loan EMIs, into one structured EMI. BillCut earns from helping borrowers refinance, so it has an interest in this option. Approval and terms depend on the partner lender. BillCut does not take IPO applications or give investment advice.
Frequently asked questions
Is my money taken out of my account when I bid?
No. The amount is blocked, not paid out. It stays in your account until allotment is finalised, and only the amount for allotted shares is debited.
Can I use someone else’s UPI ID?
SEBI’s FAQ warns that using a third party UPI ID or bank account can lead to your application not being considered for allocation. Use your own.
Do I need to enter my UPI PIN every time?
The PIN is needed once, to confirm the block request. If you enter a wrong PIN, the transaction is declined and you must start again through your intermediary.
Can I edit the amount in the UPI app?
No. Changes go through your intermediary, and you then receive and approve a fresh request.
What if I do not get any shares?
The blocked amount is unblocked in your account. SEBI notes there is no refund to claim, because no money was paid out.
How many applications can I make with one PAN?
SEBI’s investor presentation says each PAN holder can make only one application in an IPO.
Does a valid bid guarantee allotment?
No. If an issue is oversubscribed, allotment is on a proportionate basis or by lottery, so you may get fewer shares than you bid for, or none.
Disclaimer: This article explains a process and is not investment advice. It does not recommend that anyone apply or not apply to any IPO. Investments in securities are subject to market risk and you can lose part or all of your money. Read the offer document, follow the steps shown by your broker and bank, and consult a SEBI registered adviser if needed.
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