What do I need to know about the IPO bidding process?

Here’s an overview of the IPO bidding process: 

1. You can bid for any number of shares on a broker’s platform. 
2. The broker will submit your bid to the stock exchange (BSE).
3. The stock exchange (BSE) will send your bid to the sponsor bank. 
4. The sponsor bank will send you a one-time mandate authorisation request on PhonePe. 
5. You will have to enter your UPI PIN to authorise this request. 
6. If your authorisation is successful, your bank will block the confirmed amount in your account for this payment. 
7. The IPO company will randomly allot shares to bidders on the allotment day depending on the subscription percentage of the IPO shares. In case of oversubscription, the company may allot shares through a lucky draw. 
   If shares are alloted to you,
   - The amount blocked for the IPO will be automatically deducted from your bank account and sent to the IPO company through stock exchange (BSE)
   - Your shares will be credited to your demat account (visible on the broker’s platform) one day before the listing day on stock exchange.
   If shares are not alloted to you, your bank will automatically release the amount blocked in your account and this will reflect in your bank account within 2 to 3 days from the allotment date. 

Learn more about how you set-up AutoPay for an IPO using PhonePe.