What is an IPO?
An Initial Public Offering is a company selling its shares to the public for the first time to get listed on the exchanges. The offer document (RHP) discloses the business, financials and risks; a price band is announced and investors bid within it during a 3-day window. Categories include retail (up to ₹2 lakh), HNI and institutional.
ASBA & UPI — money is blocked, not paid
Applications use ASBA (Application Supported by Blocked Amount): the bid amount is only blocked in your bank account via a UPI mandate. If you get allotment, the amount is debited; if not, the block is simply released. That is why no cheques are needed — and why nobody should ever ask you to transfer IPO money to any account.
In the PCJ Invest app: pick the open IPO → enter quantity & price (or cut-off) → approve the UPI mandate in your UPI app before the deadline. Done.
Allotment and listing
If an IPO is oversubscribed in retail, allotment is by lottery among valid applications — applying the maximum amount doesn’t improve odds in retail; one lot per PAN has the same chance. Shares credit to your demat account by listing day (T+3 from close), and refunds/unblocks happen alongside.
Listing price is discovered by the market and can be above or below the issue price — a “GMP” (grey-market premium) is unofficial chatter, not a promise.
Key terms
Price band & cut-off
The range you may bid within; “cut-off” means you accept the final discovered price.
Lot size
Minimum application quantity, fixed per IPO.
RHP
Red Herring Prospectus — the offer document worth skimming for business, risks and use of proceeds.
Listing gain
The difference between issue price and listing-day price — never guaranteed.
Test yourself
1. In an ASBA/UPI IPO application, your money is…
ASBA blocks funds in your own account; debit happens only on allotment.
2. Retail oversubscribed allotment is decided by…
It is a computerised lottery; one lot per PAN has equal odds.
3. Shares typically list within…
The T+3 listing timeline applies to IPOs now.
FAQs
Yes, during the issue window from the app; retail bids can be modified/cancelled before close.
Mandates must be approved before the cut-off time on the closing day — approve as soon as you apply.
Yes — allotted shares are credited only to demat accounts.
Open the PCJ IPO portal (linked from this page or the IPO tab in the utility bar), pick the issue, choose your lots and bid price, and approve the UPI mandate that appears in your UPI app. Your money stays blocked in your own bank account — it leaves only if you receive an allotment. The entire application takes a few minutes.
ASBA means Application Supported by Blocked Amount. Instead of paying upfront, your bank simply blocks the application amount in your own account. If you get the allotment, the exact amount is debited; if not, the block is released automatically. It is the safest application method and is mandatory for retail IPO applications in India.
No. When an IPO is oversubscribed, allotment in the retail category is decided by a computerised lottery run by the registrar, as per SEBI rules. Applying on the first day or the last day makes no difference to your chances. If you are not allotted, your blocked money is released — you lose nothing.
The price band is the range within which you can bid, for example ₹95 to ₹100 per share. The lot size is the minimum number of shares you must apply for, and you can only apply in multiples of it. Retail investors can apply up to ₹2 lakh per IPO application.
Under the current SEBI timeline, allotment is finalised within a few working days of the issue closing. If you are allotted, shares are credited to your demat account and the blocked amount is debited; if not, the block on your bank account is released. The stock then lists on NSE and BSE, and you can sell from the listing day onwards if you wish.
No. Listing gains are possible but never guaranteed — stocks can list below the issue price too. Read the company's RHP (Red Herring Prospectus), understand what the business does, how profitable it is and how the price compares with listed peers. Apply because you like the business, not just the buzz.
Educational content for general awareness only — not investment, trading or tax advice. Investments in securities market are subject to market risks; read all related documents carefully. Figures/rates are indicative for FY 2025-26 and may change.