Chapter 5: IPO & Primary Market
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Day 27: How to Apply for an IPO
UPI, ASBA, GMP, and the allotment lottery — all explained
2 min read
📖 Sam's First IPO Application
Sam heard that Robert's Tea Ventures Ltd was launching its IPO. GMP (Grey Market Premium) was ₹80+ above the cap price, suggesting a strong listing.
Sam asked his friend Ben: "How do I apply? Do I need to go somewhere?"
Ben: "Mate. Your phone. Five minutes. Done."
Sam had been overthinking it for no reason. Here's the actual process: 📱
Sam heard that Robert's Tea Ventures Ltd was launching its IPO. GMP (Grey Market Premium) was ₹80+ above the cap price, suggesting a strong listing.
Sam asked his friend Ben: "How do I apply? Do I need to go somewhere?"
Ben: "Mate. Your phone. Five minutes. Done."
Sam had been overthinking it for no reason. Here's the actual process: 📱
Two Ways to Apply
🏦 ASBA (Via Bank)
Application Supported by Blocked Amount. Apply through internet banking. Amount is BLOCKED (not debited) until allotment. Use your bank's net banking or branch.
📱 UPI ASBA (Via Broker App)
Apply through Zerodha, Groww, or Angel One. Enter your UPI ID. Approve the mandate in your UPI app. The easiest method. Recommended for everyone.
Step-by-Step: Zerodha/Groww IPO Application
1
Open your broker app → Find the IPO section
Zerodha: Console → IPO. Groww: Has a dedicated IPO tab.
Zerodha: Console → IPO. Groww: Has a dedicated IPO tab.
2
Select the IPO → Check lot size
Minimum = 1 lot. If price band is ₹440 and lot = 34 shares, minimum application = ₹14,960.
Minimum = 1 lot. If price band is ₹440 and lot = 34 shares, minimum application = ₹14,960.
3
Select "Cut-off Price" — always!
Cut-off = you're agreeing to pay whatever the final issue price turns out to be. Maximum allotment probability. Never bid below the cap price if you want shares.
Cut-off = you're agreeing to pay whatever the final issue price turns out to be. Maximum allotment probability. Never bid below the cap price if you want shares.
4
Approve UPI mandate within 30 minutes!
Open PhonePe / Google Pay / Paytm — a mandate notification will appear. Approve it. If you miss this, your application gets rejected. This is the most common mistake!
Open PhonePe / Google Pay / Paytm — a mandate notification will appear. Approve it. If you miss this, your application gets rejected. This is the most common mistake!
5
Wait for allotment (~T+6 days)
Check status on BSE/NSE website or the registrar's site (Link Intime or KFin Technologies). If allotted → listing day celebrations. If not → money unblocked, try next IPO.
Check status on BSE/NSE website or the registrar's site (Link Intime or KFin Technologies). If allotted → listing day celebrations. If not → money unblocked, try next IPO.
GMP — Grey Market Premium
GMP = Unofficial estimated listing premium in the grey market
Before official listing, shares trade informally. GMP tells you what the "street" thinks the listing price will be.
IPO price ₹440, GMP ₹80 → Expected listing ~₹520.
WARNING: GMP is completely unofficial and can be manipulated. Use it as one data point, not a decision-making tool. Fundamentals matter more than GMP.
Before official listing, shares trade informally. GMP tells you what the "street" thinks the listing price will be.
IPO price ₹440, GMP ₹80 → Expected listing ~₹520.
WARNING: GMP is completely unofficial and can be manipulated. Use it as one data point, not a decision-making tool. Fundamentals matter more than GMP.
🎯 Allotment Strategy for Oversubscribed IPOs
Popular IPOs are 50–200x oversubscribed. Your 1 lot application goes into a lottery. Strategy: Apply from multiple Demat accounts in your family — each adult family member can apply independently. Each application gets a separate lottery ticket! More tickets = better odds. 🎰
Popular IPOs are 50–200x oversubscribed. Your 1 lot application goes into a lottery. Strategy: Apply from multiple Demat accounts in your family — each adult family member can apply independently. Each application gets a separate lottery ticket! More tickets = better odds. 🎰