How to Apply for an IPO Online Through Your Demat Account: ASBA, UPI & Allotment Explained

Whether you are a pro or a beginner investor, you must have come across an IPO (Initial Public Offering). For many, it’s the first real step into the equity market. Although the idea of investing in a company at the very moment it goes public is appealing, the process could feel confusing if you are new to it. 

The good news is that the “how to apply for IPO online in India” process has become more streamlined than it used to be. With your Demat account, UPI, and ASBA, you can complete the entire process in just a few steps, without paperwork or branch visits.

This guide walks you through everything you need to know, including IPO application through UPI and ASBA IPO process, and how to check IPO allotment status. Let’s begin! 

Key Takeaways

• You can apply for an IPO online using UPI or ASBA, both of which block funds instead of deducting them upfront.

• IPO application through UPI is faster and widely used by retail investors.

• Allotment is not guaranteed and depends on demand.

• You can easily complete an IPO allotment status check online.

• Choosing the best broker for an IPO in India can simplify the entire process.

• Tracking the upcoming IPO 2026 in India helps you plan better investment decisions.

What You Need Before Applying for an IPO

Before you begin the IPO application process through UPI or ASBA, ensure you have the following things:

• A Demat account (to receive shares)

• A trading account (linked to your Demat)

• A bank account with UPI enabled or ASBA facility

• Valid PAN and KYC compliance

You can rely on platforms like Mastertrust to open your demat account to start your IPO purchasing journey. 

How to Apply for IPO Online in India?

Primarily, there are two ways to apply for an IPO online in India. One is through UPI, and the other is through ASBA. Let’s break it down one by one. 

1. IPO Application Through UPI

This is the most commonly used method for retail investors today.

How it works:

• Log in to your broker’s platform

• Select the IPO you want to apply for

• Enter bid details (price and quantity)

• Enter your UPI ID

• Approve the mandate request on your UPI app

What happens next?

Your bank blocks the application amount, but does not debit it immediately.

Why investors prefer UPI:

• Quick and app-based

• No need to log into net banking

• Works seamlessly with most brokers

2. ASBA IPO Process (Application Supported by Blocked Amount)

ASBA is a facility provided by banks that allows you to apply directly through net banking. Your bank blocks the application money instead of deducting it. Here’s how it works:

Steps in the ASBA IPO process:

• Log in to your bank’s net banking portal

• Navigate to the IPO/ASBA section

• Select the IPO 

• Enter bid details, Demat account, and price

• Submit the application

Key feature:

Funds are blocked in your bank account until allotment, similar to UPI.

Who should use ASBA?

• Investors who prefer banking platforms

• Those applying through multiple accounts

• Users without UPI-enabled accounts

   

UPI vs ASBA : Which One Should You Choose?

You must be wondering which one is a better IPO application medium, UPI or ASBA. Here’s a comparison table to make your job easier. 

Although most retail investors lean towards IPO applications through UPI because it’s simpler and faster, both methods are secure and valid. 

Understanding IPO Allotment

It’s important to understand that, when you apply for an IPO, getting shares is not guaranteed. It depends on many factors, such as the number of people who have applied for the shares and how many shares are actually available. 

Here’s How Allotment Works

• Oversubscription: When a lot of people apply, the shares are distributed through a lottery system for retail investors. This means you may or may not get shares, even if you applied correctly.

• Undersubscription: If only a few people have applied, you are more likely to receive the applied shares (sometimes in full quantity).

In simple terms, higher demand = lower chances of allotment.

How to Check IPO Allotment Status

Once the allotment process is complete, you can check whether shares have been credited to your account.

Here’s how you can do an IPO allotment status check:

• The IPO registrar’s website (such as Link Intime or KFintech)

• Stock exchange websites (NSE or BSE)

• Your broker’s platform (like Mastertrust)

What will you need to check the IPO allotment status?

To check your status, keep these details handy:

• PAN number

• Application number

• Demat account ID

   

What Happens After Allotment?

Once the shares are allotted, they will be credited to your Demat account before the company gets listed on the stock exchange. In case you haven’t received any shares, the amount that was blocked in your bank account will be released automatically. 

Choosing the Best Broker for IPO in India

Many investors prefer brokers over ASBA, given the ease of use. Which is why it’s crucial to consider these points before selecting the best broker for IPO in India:

• SEBI registration for security and compliance

• User-friendly IPO interface for seamless application process

• Brokerage charges

• Fast UPI mandate processing

• Reliable notifications and updates

• Provides insights on company finances, GMP updates, and analyst reports

• Strong customer support

Platforms like Mastertrust simplify this process with:

• A simple IPO application interface

• Smooth IPO application through UPI

• Real-time updates and tracking

• Easy access to the upcoming IPO 2026 in India

   

What to Check Before Applying for an IPO

Before you invest, take a moment to evaluate the following:

Company Fundamentals

Look at the company's revenue trend, profitability, and business model. Strong fundamentals generally indicate a stable, well-run business.

Valuation

Check whether the IPO price is reasonable relative to the company's earnings and industry peers. An overpriced IPO can limit returns even if the underlying business is sound.

Purpose of the IPO

Understand why the company is raising capital. Funds directed toward growth and expansion are a positive sign, while heavy debt repayment or promoter exits warrant closer scrutiny.

Market Conditions

The broader market environment matters. High-demand markets tend to favor IPO performance, while uncertain conditions can dampen interest even in quality companies.

Upcoming IPOs in 2026: What to Watch For

The IPO calendar for 2026 is shaping up to be an active one, with several well-known names preparing to go public. 

Companies like Reliance Jio, Tata Capital, and PharmEasy are among those widely reported as potential candidates, spanning high-growth sectors such as telecom, financial services, and healthtech. 

Keeping an eye on the upcoming IPO 2026 pipeline helps you research companies in advance, plan your capital allocation, and avoid last-minute decisions driven by hype. 

You can track the latest IPO calendar through NSE and BSE portals, financial news platforms, or directly on your broker platform.

Common Mistakes to Avoid

Even a smooth application can go wrong if you overlook the basics. 

Avoid applying without researching the company, ignoring lot sizes, missing UPI mandate deadlines, assuming allotment is guaranteed, or chasing hype-driven IPOs. 

In short, discipline matters more than speed.

Conclusion

Understanding how to apply for an IPO online in India is no longer complicated, but making the right choices still requires clarity.

Whether you use an IPO application through UPI or follow the ASBA IPO process, the mechanics are simple. What truly matters is why you are applying and whether the investment aligns with your broader financial goals.

IPO investing can be an effective way to participate in market opportunities when approached with patience, research, and realistic expectations.

FREQUENTLY ASKED QUESTIONS (FAQs)

1. Can I apply for an IPO without a Demat account?

No, a Demat account is mandatory to receive shares. Without it, your application will not be valid.

2. Is UPI mandatory for IPO applications?

No. While IPO applications through UPI are popular, you can also apply using the ASBA facility through your bank.

3. How long does IPO allotment take?

Typically, allotment is finalized within 3–5 working days after the IPO closes.

4. How can I do an IPO allotment status check?

You can check your status on the registrar’s website, stock exchange portals, or your broker app using your PAN or application number.

5. Which is better: UPI or ASBA?

Both are secure. UPI is generally faster and more convenient, while ASBA may suit those who prefer banking platforms.