Applying for an IPO that is open for bidding gives you a chance to buy equity shares in a company before they list and trade publicly on the national stock exchanges (NSE or BSE). Bidding is usually open for a window of three to five business days.
Step-by-Step Bidding Process
To apply during the open window, you need a valid PAN Card, a Demat account, and a bank account linked to UPI. Most retail investors select the 'Cut-off Price' bid option. This option automatically matches the final issue price settled during book building, securing maximum eligibility for allotments.
UPI Mandate Autopay Approvals
When you submit your application bid via a stock broker (such as Zerodha, Groww, AngelOne, or Upstox), the exchange triggers an autopay block mandate request to your bank. You must log in to your UPI application (e.g. PhonePe, Google Pay, BHIM) and authorize this mandate block. The funds remain blocked in your bank account, earning interest, until the allotment finalized status is released.