What Happens After You Apply for an IPO? From UPI Mandate to Listing Day

Step 1: Submit Your IPO Application

The first step is to apply for the IPO during the subscription period.

Retail investors can apply through eligible intermediaries using the ASBA process, with UPI being a common payment mechanism. You provide details such as your PAN, bid quantity, price and UPI ID while submitting the application.

Once the application is submitted, the bid details are processed through the stock exchange and relevant intermediaries.

It is important to use your own UPI ID linked to your own bank account. Applications using a third-party UPI ID or bank account can be rejected under the applicable rules.

Step 2: Receive the UPI Mandate Request

After submitting the application, you receive a UPI mandate request on your UPI app.

This is essentially a request asking you to authorise the blocking of the amount required for your IPO application.

Check the details carefully before accepting it, including the IPO, amount and other application information.

Once you approve the mandate using your UPI PIN, the required amount is blocked in your bank account.

Step 3: Your Money Gets Blocked — Not Immediately Debited

This is an important distinction.

When you approve the UPI mandate, the application amount is generally blocked, rather than immediately transferred to the company.

The money remains in your bank account but is unavailable for other transactions while the block is active.

Under ASBA, application money remains blocked until the allotment process is completed. If shares are allotted, the required amount is debited; if you receive no allotment, the blocked amount is released according to the applicable process.

So, seeing money marked as "blocked" does not necessarily mean that you have already paid for the shares.

Step 4: IPO Subscription Closes

Once the IPO bidding period ends, applications are consolidated and the issue moves to the allotment stage.

The registrar processes the applications and works on the basis of allotment according to the applicable rules.

At this stage, investors do not need to place another order.

The application has already been submitted. The next question is whether shares will be allotted.

Step 5: IPO Allotment Is Finalised

If an IPO receives more applications than the number of shares available, not every applicant will receive the quantity they requested.

You may receive:

• Full allotment
• Partial allotment
• No allotment

The registrar finalises the basis of allotment, after which the corresponding funds are debited for the shares allotted and excess blocked funds are released. NPCI's IPO process explains that full allotment results in the applicable funds being debited, while partial allotment results in some funds being unblocked; in the case of no allotment, the blocked amount is released.

Step 6: Check Your IPO Allotment Status

Once the allotment information is available, investors can check their IPO allotment status through the registrar or relevant exchange facilities.

NSE also provides an IPO bid verification facility where investors can verify bid details using their PAN and other required information.

If you receive no allotment, the blocked funds are released according to the applicable process.

If you receive an allotment, the next step is the credit of shares into your Demat account.

Step 7: Shares Are Credited to Your Demat Account

Allotted shares are credited electronically to the investor's Demat account.

At the same time, the amount corresponding to the allotted shares is debited from the linked bank account through the applicable UPI/ASBA process.

This means that before listing day, you should be able to see the allotted shares reflected in your Demat holdings once the credit process is completed.

Step 8: The Shares List on the Stock Exchange

After the allotment and required listing formalities are completed, the shares are listed on the stock exchange.

Under the current IPO framework, the standard timeline for mainboard public issues has been reduced to T+3, where T refers to the issue closing day, subject to the applicable process and issue-specific timelines.

On listing day, the shares begin trading in the secondary market.

The listing price is determined by market demand and supply. It may be higher, lower or close to the IPO issue price.

This is why receiving an IPO allotment does not guarantee a listing gain or any particular return.

What Should You Do After Applying for an IPO?

Once your application is submitted, keep a few things in mind:

Check your UPI mandate: Make sure you approve the request within the applicable deadline.

Keep sufficient funds available: The required amount must remain available for the mandate to be executed.

Track allotment: Check the registrar or exchange once the basis of allotment is finalised.

Check your Demat account: If you receive an allotment, verify that the shares have been credited.

Don't assume a listing gain: The market price on listing day depends on demand, supply and prevailing market conditions.

IPO Applications With Dhanush 2.0 by Ashika

For investors exploring IPO opportunities, Dhanush 2.0 by Ashika provides access to IPO-related investment services through its digital platform, subject to applicable eligibility and account requirements.

From tracking available IPO opportunities to managing your market investments, a digital platform can make the process more convenient. But the most important step is understanding the issue before applying.

An IPO application is only the beginning. From the UPI mandate and blocked funds to allotment, Demat credit and listing day, each stage has a specific role in getting the shares from the public issue to the stock market.

So, once you hit “Apply”, don't just wait for the allotment message. Know what happens next.