How to find IPO mandates for UPI Apps
Introduction
Another feature added to the UPI (United Payments Interface) is now it will act as a medium for you to apply for IPO (Initial Public Offering).
UPI has made our life easy and instant. UPI does everything from paying bills to transferring funds in the blink of an eye. However, it is no more restricting itself to just transferring bills; now, you can apply for an IPO from your UPI ID; convenience at the tip of your fingers.
Earlier, you could only invest in IPO through ASBA (Application Supported by blocked amount) from SCBs (self-certified syndicate banks). When the subscriber received the allotted shares in his Demat account, the bank would block the required amount to be debited from his account.
However, now the Securities & Exchange Board of India (SEBI) has made it compulsory for all the retail investors applying through Depository Participants (DPs), registered brokers, and Registrar and transfer agents (RTAs) to invest in IPOs only through the UPI route. This makes the entire process secure, fast, and straightforward.
What is an IPO mandate?
After applying for an IPO through your UPI app, you will receive an approval request to set the mandate. After the application gets cleared, your UPI app will block the money from your bank account if you receive the subscription. However, the money will be released for use if you do not receive the subscription.
IPO mandate on Google Pay (Gpay)
There can be a delay in receiving the IPO mandate request on Gpay. So, be patient for 24 hours. You can find the Gpay IPO mandate in a few simple steps.
- Open Gpay.
- Go to profile at the top right corner of the screen > go to Settings > One Time Mandate.
- You will find a pending request under Autopay.
- To accept the mandate request, tap on “authorise” and enter your UPI Pin.
- You have to authorise within the time limit.
- Check your UPI application number and details on your registered email ID.
- To check the allotment application and status, go to the IPO dashboard.
- If the shares are allotted to you, the funds will be deducted from your account, and the mandate will be executed.
This is how to find the IPO mandate on gpay in some quick and easy steps.
IPO mandate on Phonepe
After your application gets approved, you will receive a mandate request on the phonepe app within 24 hours. Here’s how you can find Phonepe IPO mandate in a few easy steps.
- Open your Paytm app
- Tap on “Send Money to Bank Account”
- Now, go to “settings” on the upright corner
- Click on “UPI Automatic Payments”
- You will see the UPI mandate listed.
- Check the details, verify and approve.
How to find IPO mandates on other UPI apps
BHIM App
- Open the BHIM app on your phone
- Find the “Mandates” on your homepage.
- Click on Mandate and find if there are any IPO mandate requests for approval.
- You will find your information here; UPI ID, account number, IPO’s name, and amount to be debited.
- On the same screen, scroll down, and you will find the “Approve” and “Decline” Tabs.
- Click on Approve, and enter the password/pin.
- Your IPO creation is successful.
- Now, on your homepage, you will find the IPO tab as well.
- However, to approve any IPO mandate requests, you will have to refer Mandates section only.
- Your IPO will reflect in the IPO section.
What is UPI?
UPI is a short form for United Payments Interface. It is an instant payment system initiated by the NPCI (National Payments Corporation of India). You can transfer funds between any two bank accounts instantly through UPI. However, to use it, you need to create a UPI ID.
You can now apply for IPO through your UPI ID on the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange). How can you do that? You need to call your broker and tell him to use your UPI ID at the time of IPO application submission.
How does the new UPI IPO mandate system work?
Under this new system, the IPO application form will consist of two unfilled parts, one for ASBA and another for UPI. If you find your bank on the UPI list, you can skip the ASBA section on the form and move on to the UPI part. Mention your UPI ID as a payment option. You will receive a request for a ‘block mandate’ on your UPI app. Accept the request by entering the UPI PIN. Now, the required amount is blocked. If the company has allotted the shares you applied for, the funds will be debited from the bank account.
How to find out which UPI apps and banks support IPO mandates?
Click on the npci.org.in website and find all the linked UPI apps and banks that support the IPO mandate.
How to create a UPI ID to apply for IPOs?
Creating a UPI ID is easy; you have to follow a few simple steps.
- Download and install the BHIM app from the Google Playstore or the Apple Store.
- Open the app and enter the registered mobile number linked with the bank account.
- Set a four-digit password for login.
- A list of banks will appear in the next window.
- Select your bank.
- Choose the primary account if multiple accounts are linked to the same mobile number.
- Verify your bank account by entering the last six digits and the expiry date of your debit card.
- You will receive an ATM pin and a one-time password.
- The app will now ask you to set a UPI Pin that will be used to authorise future transactions.
- The UPI ID is your virtual ID.
With this seamless integration of IPO with UPI, anyone can invest in public offerings from anywhere. Applying for IPO using UPI is safer, quicker, and paperless.
How to cancel IPO Application?
Any time during the period that the IPO subscription window is open, a retail investor who filed for the IPO in the retail category (less than 2 lakhs rupees) has the ability to cancel or change the application. After the IPO has closed for subscriptions, an application for an IPO cannot be cancelled or withdrawn. Cancellation or revision of initial public offering (IPO) bids is allowed on the day the issue is closed, but only until 2:00 pm at certain banks or brokers.
Steps to cancel IPO mandate
- Visit the broker’s IPO website or mobile application by entering your login information.
- Proceed to the IPO area.
- Choose the IPO offer that must be cancelled.
- Once accessible, click the “Modify Bid/Delete Bid/Delete Order/Withdraw Application” option.
- Validate the transaction.
- Reject the UPI requirement.
- Some banks release/unblock the money after the expiration of the mandate. Check with your bank or broker to see whether manual cancellation is necessary to release the cash following cancellation.
- The broker sends the Exchange’s cancellation request between 10 a.m. and 5 p.m. The status of the cancellation request is updated as soon as confirmation is received from the Exchange.
- You will get an email message once the application is cancelled.
Other points to consider while cancelling your application
- When an initial public offering (IPO) application is withdrawn, no financial institution or broker will assess any fees.
- Retail investors are the only ones who are permitted to withdraw their IPO bids.
- At no point throughout the process are QIBs and NIIs permitted to withdraw, cancel, or reduce the number of their bids.
- The opportunity to cancel or make modifications will not become accessible online until the broker has first submitted the IPO application to the exchange and received confirmation of its receipt.
- It’s possible that every broker has its own unique IPO cancellation window, just like Zerodha. Verify this information with your stock broker.
- Even if the IPO bidding window on the market is from 10 AM to 5 PM, the bank would not allow IPO cancellations after 2 PM or 3 PM on the last day.
Conclusion
When customers choose to block an amount in their bank accounts for IPO applications, a mandate is created. Mandate creation for IPOs through the UPI (Unified Payments Interface) has hit a high of 4.5 million in May 2022. This data has been released by the NPCI (National Payments Corporations of India). The data showed that a record 2.4 million mandates got executed in May. This successful integration shows that applying for IPO through UPI is a safe, easy, and secure process. This article has discussed what is IPO mandate and how to find IPO mandate on gpay, phonepe, and other UPI apps.
Frequently Asked Questions
- Check if there is a sufficient balance in your bank account.
- Enter the correct UPI ID and UPI PIN.
- Make sure that the PAN linked to your bank account and PAN in the IPO application are the same.
- Use your UPI app to approve the IPO mandate request.
- Check your registered email ID and phone for IPO-related messages.
- While accepting the block request, check for the “verified merchant” tag.
- Check the bid-cum-application number, amount, and other details.
- In case of technical error, such as accidental declining of the request, or incorrect PIN entry, you can approach your intermediary who is applying for the IPO and request to re-initiate the request.
Yes, you can. Your mobile number should be linked to your bank account, and you should have a debit card. You can activate your UPI ID via bank application within minutes with the help of these two things. The bank’s customer care can also help you to create one.
- The UPI option ensures minimal rejections regarding signature mismatch and other such glitches.
- Earlier in the ASBA system, your IPO form signature needed to match with the bank records. Even a slight mismatch could get your IPO form rejected.
- The travel time drops dramatically as earlier the forms would be sent from the syndicate banks to your bank.
- However, under the UPI method, it is considered enough proof when you accept the request from the syndicate bank to block an amount via the UPI app.
- The IPO mandate through UPI app also reduces the time between listing shares and closing an IPO.
UPI for Bidding
- The investor will fill in the bid details in the application form along with his UPI ID.
- The investor will submit the application with an intermediary (RTA, DP, Syndicate Member, Registered Stock Brokers), who will upload the bid details and UPI ID on the bidding platform.
- The stock exchange will share the bid details and investors’ UPI ID (electronically) with the Sponsor or Escrow Bank appointed by the issuer company.
UPI for shares post allocation process
- As per blocking and bidding received from the stock exchange, the registrar to the issue would start reconciliation and prepare an allotment basis.
- When the basis gets approved, the instructions are sent to the sponsor bank to initiate the process for unblocking excess money and credit of funds in the public issue escrow account.
- Upon authorisation given using UPI PIN at the time of blocking, the funds equal to the allotment are debited from the investor’s account, and the remaining funds, if any, are unblocked.