How brokers hold your bid until the issue opens, when to approve the UPI mandate, and why it does not change your allotment odds.
Many broker apps let you "pre-apply" for an IPO: you place your bid a few days before the issue opens, and the broker submits it for you once bidding starts. It is a convenience feature that makes sure you don't forget to apply.
How pre-apply works
- The IPO appears in your broker app with an "upcoming" or "pre-apply" tag once the price band is known.
- You choose the number of lots and bid at the cut-off price, as in a normal application.
- The broker holds the bid and sends it to the stock exchange when the issue opens.
- Your UPI app then receives the mandate request. Approve it: the bid counts only after the mandate is approved.
When does the UPI mandate arrive?
After the broker uploads the bid to the exchange, usually on the opening day. It can take from a few minutes to a few hours. You have until 5 PM on the closing day to approve it. If no mandate arrives by the second day, check the bid status in your broker app and contact the broker.
Does pre-applying improve allotment chances?
No. In an oversubscribed IPO, retail allotment is decided by a lottery among all valid applications; applying first gives no advantage. What matters is that your application is valid and the mandate is approved in time. See how IPO allotment works.
Changing or cancelling a pre-applied bid
You can modify or cancel the bid from your broker app until the issue closes. If you cancel after approving the mandate, the blocked amount is released.
Tips
- Bid at the cut-off price so your bid stays valid whatever the final price.
- Keep enough balance in the linked bank account for the full amount.
- Track opening dates on the upcoming IPOs page or add them to your calendar from any IPO page.