Common IPO Application Mistakes to Avoid
Introduction
Applying for an IPO is simple, but small mistakes can lead to rejection or zero allotment. Understanding common errors helps investors improve their chances and avoid unnecessary application failures.
Multiple Applications Using Same PAN
Submitting more than one IPO application using the same PAN (even through different brokers or bank accounts) leads to automatic rejection of all applications.
SEBI rules strictly allow only one application per PAN in each investor category.
Incorrect PAN or Demat Details
Entering an incorrect PAN number or Demat account ID is a frequent reason for application rejection.
Even a minor mismatch between PAN, Demat, and bank records can invalidate the application.
UPI Mandate Not Approved on Time
For UPI-based IPO applications, investors must approve the mandate request before the IPO closes.
Failure to approve the mandate within the time window results in the application being considered invalid.
Applying at Wrong Cut-Off or Price
Retail investors often forget to select the cut-off price option, especially in book-built IPOs.
If the selected bid price is below the final cut-off price, the application becomes invalid.
Insufficient Account Balance
Having insufficient balance at the time of UPI mandate or ASBA blocking leads to mandate failure.
Investors should ensure the full application amount is available in the linked bank account.
Wrong Investor Category Selection
Selecting the wrong category such as Retail instead of NII/HNI or vice versa can cause rejection or misclassification.
Category selection must match the application amount and eligibility rules.
Applying for More Than Retail Limit
Retail investors applying for more than ₹2 lakh worth of shares are automatically moved out of the retail category.
This reduces allotment probability as NII allotment rules are different and more competitive.
Last-Minute Application Issues
Applying at the last moment increases the risk of technical failures, UPI delays, or broker outages.
Early application allows time to fix errors or approve mandates properly.
Ignoring Application Status Confirmation
Many investors assume the application is successful without checking the final status shown by the broker or bank.
Always verify that the application shows as “Submitted” and the mandate is approved.
Key Takeaways for Investors
- Use only one PAN per IPO application
- Double-check PAN, Demat, and bank details before submitting
- Approve UPI mandates promptly
- Apply early and choose the cut-off price when eligible
Disclaimer
This document is for educational purposes only. IPO application rules may vary by issue and intermediary. Investors should always refer to the official IPO prospectus and broker guidelines before applying.