Applying for IPO via UPI

Investors have the option to apply for an IPO either online or offline using UPI. The online method is generally more straightforward and user-friendly compared to the traditional offline process. An essential requirement for applying through UPI is having a UPI ID. For offline applications, investors must manually fill out the IPO application form with all the necessary details before submission. In contrast, an online application requires just a few clicks.

On November 1, 2018, SEBI introduced the Unified Payment Interface (UPI) as a new payment method for IPOs. This UPI-based application process is designed to be both convenient and quick, allowing investors to pay for IPOs and submit their bids online in just a few minutes.

UPI Mechanism for IPO Applications

When you apply for an IPO using UPI, you're utilizing the Unified Payments Interface, a real-time payment system created by the National Payment Corporation of India (NPCI), which is regulated by the RBI. This system facilitates instant bank-to-bank transactions, much like the IMPS fund transfer service. To participate in an IPO, a UPI ID is essential.

NPCI has collaborated with several banks and digital wallet platforms to enable IPO applications via UPI. While some UPI handles work exclusively on Android devices, others support both Android and iOS platforms. For detailed information, you can refer to the list of IPO UPI apps available.

The IPO UPI Process

The UPI IPO process aims to digitize IPO applications, enhancing efficiency and streamlining the listing timeline for public issues.

1. Online IPO Application UPI

You can apply for an IPO online using your UPI ID from anywhere at any time, as long as your broker offers an online IPO application service.

Online IPO Application Process Through UPI

1. Download apps like Google Pay, BHIM, or Paytm.
2. Set up a UPI ID and PIN.
3. Open a Demat and trading account with a broker.
4. Log into the broker's trading platform.
5. Navigate to the IPO section.
6. Enter the IPO bid details.
7. Provide your UPI ID and submit the form.
8. Approve the payment request in your UPI app.

2. Offline IPO Application UPI

For offline applications using UPI, enter your UPI ID in the payment section of the IPO application form. Regardless of being online or offline, UPI mandate approval is necessary to finalize the process.

Offline IPO Application Process Through UPI

1. Obtain the IPO application form from a broker or bank branch, or download it from the exchange website (NSE/BSE).
2. Fill in your personal and financial details.
3. Choose the investor category and status.
4. Provide bid details and your UPI ID.
5. Sign and submit the form.
6. Approve the UPI mandate request.

Understanding the IPO UPI ID

To apply for an IPO via UPI, investors need a UPI ID, which is a unique virtual payment address (VPA). It resembles an email address and is created by registering with a UPI-enabled app linked to your bank account.

The format of a UPI ID for IPO applications is xxxxxx@bank/payment application, where the first part might be your phone number, part of an email ID, or your first name, followed by the bank or payment app name. For instance, Aarav Upadhyay's UPI ID could be aarav@icici if linked to his ICICI bank account. Sometimes, a specific prefix or suffix might be added.

Limits for UPI in IPO Applications

The UPI payment option for IPOs is available solely for individual investors. The IPO UPI limit has been increased from ₹2 lakhs to ₹5 lakhs.

• For mainboard IPOs, the Retail Individual Investors (RIIs) limit remains at ₹2 lakhs, even though UPI allows up to ₹5 lakhs. Investments above ₹2 lakhs fall under the NII category.

• For SME IPOs, the minimum application for retail investors is often 2 lots, usually exceeding ₹2 lakhs. Such applications can be made via UPI up to ₹5 lakhs, with classification based on lots: • 2 lots = Individual Investor • 3 lots or more = NII

Timing for UPI IPO Transactions

Once an IPO application is submitted, it's incomplete until the UPI mandate is approved. Recent IPO process changes mandate that only bids with approved mandates are valid and uploaded to the exchange. Therefore, mandate requests must be approved within the IPO UPI cut-off period to avoid bid rejection.

IPO UPI Payment Time Limit

The deadline for IPO UPI payments is 5 p.m. on the issue closure date. Brokers often set a buffer of at least 30 minutes to circumvent last-minute technical issues. It's advisable to check with your broker for the final payment deadline. This timing also applies to bid modifications or cancellations.

Rules for Using UPI in IPO Applications

• UPI payment is exclusive to individual investors.
• Investors can apply for IPOs up to ₹5 lakhs using UPI.
• A UPI ID is necessary for UPI applications.
• Mandate approval is essential for completing the IPO application process.
• Offline forms using UPI cannot be submitted to SCSBs, but can be submitted to Syndicate members, registered stock brokers, Registrars, or Depositories.

Mandate Approval in UPI Applications

Approving the IPO UPI mandate is crucial when applying through UPI. If not approved by the cut-off, the bid is invalid and won't be uploaded to the exchange.

Here's a breakdown of possible mandate request scenarios:

1. IPO UPI Mandate Expired

Every UPI mandate has a set validity. Check the validity in the "Mandate" section of your UPI app. If expired, re-initiate the transaction. Approval must occur before 5 p.m. on the issue closure date.

2. IPO UPI Request Not Received

If the request isn't received within an hour, delete the previous application and resubmit.

3. IPO UPI Mandate Failed

Technical issues may cause payment failures. Cancel and reapply if this occurs.

4. IPO UPI Mandate Revoked

To cancel or withdraw an offer, revoke the mandate via your intermediary. Revoking releases funds immediately.

Checking Your UPI IPO Application Status

You can verify the status of your UPI IPO application through the broker or bank used for submission. For offline submissions, check the Exchange's website (NSE/BSE) using the bid number from your IPO form.

Steps to Check Online UPI IPO Status

1. Log into your broker platform or online banking.
2. Access the IPO/Investment section.
3. Review Bid History or the applied IPO.
4. Possible statuses include: • IPO UPI confirmation status pending. • Bid submitted successfully. • UPI Mandate Request pending. • Bid uploaded to exchange. • Bid rejected.

Brokers may use different status names. For allotment status, visit Chittorgarh.com or the Registrar's site. Allotted shares are credited to your Demat account. If not allotted, you'll receive a refund as per the issue's schedule.

Handling IPO UPI Complaints

For issues like fund blocking or application status, first contact the intermediary. You can also approach the bank/SCSB or registrar.

For UPI transaction problems, use the UPI Dispute Redressal Mechanism portal. Select the complaint type and provide your UPI ID and transaction details.

If unsatisfied with the resolution, file a complaint with SEBI. Provide these details for UPI-related complaints:

• Applicant's Name.
• Applicant's Address.
• Number of Equity Shares applied.
• Application Amount.
• SCSB branch where form was submitted.

Resolution times average 7-10 business days from complaint receipt.

Using Bhim UPI for IPOs

Bhim, or Bharat Interface for Money, facilitates easy money transfers via UPI. After submitting an IPO via Bhim, you'll receive notifications about your mandate status.

Approving Bhim UPI IPO Mandates

• Log into Bhim UPI.
• Access the IPO section.
• Check for pending requests.
• Verify the request's authenticity.
• Approve and enter your PIN.

If a mandate isn't received within an hour, re-initiate the transaction or contact your intermediary.

Common reasons for failed Bhim UPI transactions include incorrect PINs, bank server issues, or outdated mobile numbers. For issues, contact your intermediary or use the Bhim UPI complaint portal. Bhim UPI support is also available at 18001201740.

Applying for IPOs via Gpay UPI

Google Pay (Gpay) allows IPO applications via UPI. Once applied, a UPI mandate notification appears in Gpay.

Approving Gpay UPI Mandates

• Open Gpay.
• Click your profile.
• Find "Mandates" and check pending ones.
• Approve the mandate with your UPI PIN.

If a mandate fails, re-initiate the transaction or contact your intermediary.

Page Glossary

1. IMPS

Immediate Payment Service (IMPS) enables instant, 24/7 bank transfers in India, even on holidays.

2. NPCI

The National Payments Corporation of India (NPCI) operates retail payment systems, an RBI and Indian Banks' Association initiative. It manages UPI Payment, Bharat Bill Pay, RuPay Card, FASTag, and NACH.

3. UPI PIN

A UPI PIN is a 4-digit code needed to authorize payments in UPI apps. It's set by users, should remain confidential, and can be changed anytime. Each UPI ID or bank account requires a unique PIN.