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IPO UPI mandate: how to approve it and why it fails

· 2 min read

When you apply for an IPO with UPI, the application isn't complete until you approve a mandate request in your UPI app. Miss it, and the application doesn't count. Here's how it works and how to avoid the usual problems.

What the mandate is

A UPI mandate is a request to block the application amount in your bank account — not to pay it. The money stays in your account but can't be used while the IPO is in progress. If you're allotted shares, the amount for those shares is debited; anything not needed is released.

How to approve it

  1. After the application is submitted, a mandate request arrives in the UPI app linked to the UPI ID you used. It can take a few minutes, and sometimes longer on busy days.
  2. Open the request — look under pending requests or mandates — and check the IPO name and amount.
  3. Approve it with your UPI PIN.

Approve it before the deadline on the IPO's closing day. Requests are often slower on the last day, so it's safer to apply and approve a day early.

If you're applying for family members, each person approves their own mandate in their own UPI app. Remind everyone, especially on the closing day.

Common reasons it fails

  • Mandate not approved in time. The most common one. The application is treated as not made.
  • UPI ID in someone else's name. The bank account behind the UPI ID must belong to the applicant. Another family member's UPI ID won't work.
  • Not enough balance. The full amount has to be available to block when you approve.
  • Amount above the UPI limit. UPI can be used for applications up to ₹5 lakh.
  • Wrong UPI ID. A typo sends the request nowhere, so double-check the handle (for example name@bank).
  • The bank or UPI app doesn't support IPO mandates. Most do, but if no request arrives, check that your bank supports UPI for IPO applications.
  • Details don't match. The PAN on the application must match the demat account, or the application can be rejected later.

What happens to the money

  • Allotted: the amount for the allotted shares is debited from your account around the allotment date; the rest of the block is released.
  • Not allotted: the full block is released, usually within a couple of days of the issue closing.
  • Application rejected: the block is released too.

If money stays blocked for longer than expected, contact your bank first — the block sits with them.

Making it easier for a family

With Allotly, you save each member's UPI ID once, along with their PAN and demat details. When you apply for everyone together, each member gets their own mandate request, and you can track every application and its allotment status in one list.

This article explains general rules for IPO applications in India. Check the offer document of each IPO for its exact terms, and invest according to your own judgement.