UPI IPO Application

Investors can apply for an IPO via UPI either online or offline. The online UPI IPO application process is much simpler, easier and convenient compared to the offline IPO application using UPI. An UPI ID is mandatory to apply for an IPO using the UPI route. In the offline IPO application, investors need to get the IPO application form, fill all the details manually and then submit the form. On the other hand, an online IPO application is just a few clicks.

On November 1, 2018, SEBI announced the launch of the Unified Payment Interface (UPI) as a new payment method for IPOs. The UPI based IPO application process is very convenient and simple. It only takes a few minutes to pay for an IPO application via UPI and submit IPO bids online.

UPI mechanism for IPO application

UPI IPO means applying for an IPO through the UPI payment gateway. UPI stands for Unified Payments Interface. It is an instant payment system developed by the National Payment Corporation of India (NPCI) (an RBI-regulated entity) through which investors can transfer money from one bank to another instantly or in real time. It is similar to IMPS (Immediate Payment Service) fund transfer. To apply for an IPO, investors should have a UPI ID.

NPCI has partnered with several banks and digital wallet platforms that allow IPO applications through UPI. Some of the UPI handles are only supported on Android, while others work on both Android and iOS systems. For details, see the list of IPO UPI Apps.

IPO UPI Process

The UPI IPO process is a step towards digitizing the entire IPO process with the aim of increasing efficiency and reducing the listing timeline for public issues.

1. Online IPO Application UPI

Investors can apply for an IPO online using their UPI ID anytime and anywhere through their broker, provided the broker offers an online IPO application facility.

Online IPO Application Process Through UPI:

1. Download Google Pay, BHIM or Paytm App.
2. Create an UPI ID and set the PIN.
3. Open Demat and trading account with a broker.
4. Login to the broker's trading platform.
5. Look for the IPO section in the app/website.
6. Fill in the IPO bid details.
7. Enter the UPI ID and submit the form.
8. Investors will receive a payment approval request in the UPI App.
9. Investors need to approve the UPI mandate request.

2. Offline IPO Application UPI

To apply for an IPO offline using UPI ID, investors need to fill in the UPI ID under the payment option in the IPO application form. Regardless of whether the application is submitted online or offline, approval of the UPI mandate is mandatory to complete the application process.

Offline IPO application process through UPI:

Procure the IPO application form from the nearest broker/bank branch. OR Download the form from the exchange website (NSE/BSE).

1. Fill in the applicant name, address, contact details, PAN, and DP details.
2. Select the investor category as Retail Investor or Non-Institutional Investor as the case may be and the Investor Status as Individual.
3. Enter the bid details.
4. Enter the UPI ID.
5. Sign the form.
6. Submit the form to the nearest intermediary.
7. Approve the UPI mandate request

IPO UPI ID

The IPO application through UPI requires individual investors to have a UPI ID.

A UPI ID is a user's unique virtual payment address (VPA), similar to an email address. The UPI ID for IPO application can be created by registering with one of the UPI-enabled mobile applications (app) using the investor's bank account information.

The UPI ID for the IPO application has the format xxxxxx@bank/payment application. The first part of the UPI ID is either the user's cell phone number, a partial email ID or the first name. The second part is the name of the bank or the name of the payment application. For example, if Aarav Updhyay created a UPI ID with his name and linked it to his ICICI bank account, his UPI ID would look like aarav@icici. In some cases, a specific prefix/suffix can be added to the second part.

UPI IPO Limit

The UPI payment method to apply for an IPO is available only for individual investors.

The IPO UPI limit has been raised to Rs.5 lakhs from the earlier limit of Rs.2 lakhs. However, the limit for retail individual investors continues to remain at Rs.2 lakhs.

Individuals who wish to apply under the Non-institutional category for an IPO amount up to Rs.5 lakhs can apply using UPI.

UPI IPO Time

Once investors submit an IPO application, the application is not considered complete until the UPI mandate request is approved. According to recent changes in the IPO process, only those bids are considered valid and uploaded to the exchange where funds are blocked. Therefore, it is important for investors to approve the mandate requests within the cut-off period of IPO UPI to avoid rejection of their bids.

IPO UPI Payment Time Limit: Before 5 PM on issue closure date.

The cut off time for the IPO UPI payment is 5 p.m. on the issue closure date. However, brokers usually keep a buffer of half an hour or more to avoid last minute tech glitches. Investors must check with their broker for the last time to complete the IPO UPI payment. The above IPO UPI mandate accept time is also applicable for modification or cancellation of the bid.

IPO UPI Rules

• The UPI payment gateway is available only for individual investors.
• Investors can apply for an IPO up to Rs. 5 lakhs using UPI payment mode.
• An UPI ID is mandatory to use UPI gateway.
• UPI IPO approval of mandate request is a must to complete the IPO application process.
• The offline IPO application form with UPI as payment mode cannot be submitted to SCSB. It can be submitted either to a Syndicate member, registered stock broker, Registrar, or Depository.

IPO UPI Mandate

It is necessary to approve the IPO UPI mandate request when investors apply for an IPO through UPI. If the mandate request is not approved within the cut-off, the investor's bid is not considered valid and does not get uploaded to the exchange.

Investors may come across various scenarios/statuses in respect to the mandate requests. Let us understand each of them as stated below:

1. IPO UPI Mandate expired

   Each UPI mandate request has a validity period as set by the applicant/bank. Investors can check the IPO UPI mandate validity in the UPI app under the "Mandate" section. If the mandate request has expired, investors will need to re-initiate the transaction. According to the new rules of UPI IPO, the UPI mandate request should be approved before 5 pm of the issue closure date.

2. IPO UPI request not received

   If the IPO UPI mandate request is not received within an hour, delete the earlier IPO application and submit a new one.

3. IPO UPI mandate failed

   Sometimes, the IPO UPI payment gets failed or the authorisation gets failed due to technical issues at the bank's end or with the UPI app. In such cases, cancel the original request and submit the new IPO application request.

4. IPO UPI mandate revoked

   If an applicant wishes to withdraw or cancel their offer after the application has been submitted, they may do so by cancelling/withdrawing the offer and then cancelling the mandate application. An applicant may revoke (cancel/withdraw) the mandate by contacting the intermediary through which the offer was submitted. Once the mandate request is revoked, the money will be released from the account immediately.

UPI IPO Application Status

The applicant can check the status of his/her UPI IPO application through the broker/bank through which the application was submitted. If the application was submitted offline, you can check and verify the bids on the website of the Stock Exchange (NSE/BSE) using the bid number provided on the IPO application form.

Steps to check the IPO UPI confirmation status for bids submitted online:

1. Login to the broker platform or Net banking website.
2. Go to the IPO/Investment section from where you submitted the bid.
3. Go to the Bid history or the click on the applied IPO.
4. Investors will see the status of their application as any of the below:
   • IPO UPI confirmation status pending.
   • Bid submitted successfully.
   • UPI Mandate Request pending approval/ IPO UPI mandate pending.
   • Bid uploaded to exchange.
   • Bid rejected.

Note: The nomenclature of status may differ slightly for each broker/bank.

The applicant can also check the UPI IPO allotment status as described above. However, not many brokers/banks maintain the live Allotment Status. You can visit Chittoragh.com IPO allotment status page or the Registrar's website to check the allotment status of the applied IPO.

In case of successful allotment, the shares will be credited to your demat account. However, in case of no allotment or only partial allotment, you will receive the UPI IPO refund as per the scheduled refund timelines of the issue.

IPO UPI Complaint

If an investor faces any issues in respect to blocking or unblocking of funds or IPO application status, the investor should first approach the respective intermediary.

The investor may also contact the bank/SCSB or the registrar.

In case of any problem related to the UPI transaction, the investor can also file a complaint on the UPI Dispute Redressal Mechanism portal. The investor shall select the desired option depending on the nature of the complaint, i.e. whether the complaint is related to the transaction, PIN, account, registration, login or other issues, and provide the details of UPI ID and the nature of the transaction and its details.

If the investor is not satisfied with any of the above ways, he/she can file a complaint with SEBI.

All complaints related to UPI addressed to the intermediaries should have the below details:

• Name of the Applicant.
• Address of the Applicant.
• Number of Equity shares applied for.
• Amount paid on application
• The designated branch of the SCSB where the application form was submitted by the applicant.

The estimated average time taken by the registrar or the SCSBs for resolving the investor grievances ranges between 7-10 business days from the date of receipt of the complaint.

Bhim UPI IPO

Bhim is a payment app that makes it easy to transfer money via UPI. Bhim stands for Bharat Interface for Money. With the Bhim UPI app, you can easily submit IPO applications.

Once investors submit an IPO application through UPI ID, they will receive a notification and SMS from their Bhim app informing them about the status of their mandate.

Steps to approve the Bhim UPI IPO mandate request:

• Login to the Bhim UPI.
• Go to IPO section.
• Look for Pending IPO requests.
• Ensure the IPO request has a Verified Merchant mark to ensure authenticity.
• Approve the request.
• Enter the PIN to approve the request.

If the Bhim UPI IPO mandate is not received within one hour, re-initiate the transaction or contact the intermediary (if you submitted a physical application) to verify that the intermediary submitted the application

Sometimes investors may receive the message 'Bhim UPI IPO failed transaction' because the payment could not be processed successfully. There are various reasons as listed below that can lead to payment failure.

• Incorrect PIN.
• Issue with Bank's server.
• Change in mobile number and not updated with bank.

In case of any issues with respect to the IPO transactions processed through Bhim UPI app, first reach out to the intermediary/bank through whom the request was raised or re-initiate the transaction.

Investors can also raise complaints on the BhimUPI IPO complaint portal and enter the issue details choosing the correct option. Investors can also dial in the toll-free Bhim UPI customer care number 18001201740 for any generic issues.

Gpay UPI IPO

Google Pay, commonly known as Gpay, is a payment app from Google that lets investors transfer money directly from your bank account. Investors can also apply for an IPO via UPI using Google Pay.

Once investors apply for an IPO with their Gpay UPI ID, they will receive a UPI mandate notification in their Gpay app.

Steps to approve the UPI mandate for ipo gpay:

• Open the Gpay App.
• Click on your profile on the right hand corner of the screen.
• Look for the Mandates option.
• Click on the Pending tab under Mandates.
• Click on the mandate to be approved.
• Enter the UPI PIN to authorize the mandate.

In case UPI mandate fails, re-initiate the transaction or reach out to the intermediary through whom the IPO application was processed.

Page Glossary

1. IMPS

Immediate Payment Service (IMPS) is an electronic funds transfer system for instant payments between banks in India.

Using IMPS as a fund transfer system, you can transfer money 24/7 throughout the year, even on holidays.

2. NPCI

The National Payments Corporation of India (NPCI), an umbrella organization for the operation of retail payments and settlement systems in India, is an initiative of the Reserve Bank of India (RBI) and the Indian Banks' Association ( IBA) under the provisions of the Payment and Settlement Systems Act, 2007, to create a robust payment and settlement infrastructure in India.

The National Payments Corporation of India is a coordinating body that supports services such as UPI Payment, Bharat Bill Pay, RuPay Card, FASTag, and NACH.

3. UPI PIN

UPI PIN is a 4-digit PIN, required to approve a payment request in the UPI app.

UPI PIN is set by the user and is a one-time process. It is sensitive information that should not be shared. You can change your PIN at any time through the UPI app. The UPI PIN is different for each UPI ID /bank account.