IPO pre-apply: how it works, when the mandate arrives
Updated 26 October 2026 · 4 min read
Pre-apply lets you place an IPO bid in your broker's app before the issue opens. The broker stores the order and sends it to the exchange when bidding starts, usually on the morning of opening day. Your UPI mandate request arrives only after that, so the bid is not complete until you approve it. Pre-apply does not improve your chances of allotment; it is a convenience that helps you avoid forgetting or rushing.
This guide explains how pre-apply works behind the scenes, when to expect the mandate, the advantages and limits, and the mistakes that turn a pre-applied bid into "no record found".
How pre-apply works
Exchanges accept IPO bids only during the bidding period, usually 10 am to 5 pm on each day the issue is open. Before that, a broker cannot place your bid on the exchange. Pre-apply is the broker's own queue: you fill in the bid as normal, and it waits in the broker's system.
- The company announces the price band, at least two working days before opening, and brokers list the IPO with a pre-apply option.
- You choose the category, number of lots and price (usually cut-off for retail), and enter your UPI ID.
- The broker holds the order. Nothing is blocked in your bank yet, and nothing has reached the exchange.
- On opening day the broker uploads pre-applied orders to the exchange once bidding opens.
- The exchange sends the mandate request to your UPI app through the sponsor bank.
- You approve the mandate with your UPI PIN. The amount is blocked and the bid becomes valid.
When does the mandate arrive?
Usually within a few hours of the issue opening, often in the morning, but it depends on the broker's upload schedule and on how busy the UPI system is. On the opening day of a heavily anticipated IPO, mandates can take longer. If nothing has arrived by the evening of the opening day, check your broker's IPO order book for the bid status before doing anything else.
Here is an illustration of a typical week. Say an IPO opens on Tuesday and closes on Thursday, and you pre-apply on the previous Friday for one lot of 142 shares at the cut-off price of ₹105. Nothing happens over the weekend or on Monday. On Tuesday, once bidding opens, the broker uploads your order and a mandate for ₹14,910 appears in your UPI app. You approve it on Tuesday, the amount is blocked, and your bid is complete with two full days to spare.
Pre-apply compared with applying during the issue
| Pre-apply | Apply while the issue is open | |
|---|---|---|
| When you enter the bid | Before opening, once the broker lists the IPO | Any time during the bidding period |
| When it reaches the exchange | On opening day, uploaded by the broker | Within minutes of placing it |
| When money is blocked | After you approve the mandate on or after opening day | After you approve the mandate |
| Effect on allotment chances | None | None |
| Main risk | Forgetting that the mandate still needs approval | Leaving it to the busy last afternoon |
Advantages
- You can make the decision calmly, after reading the RHP, and have the bid ready before opening day.
- It reduces the chance of missing the IPO because you were busy during the issue period.
- Your mandate usually arrives early in the issue period, leaving several days to sort out any problem.
- Many brokers let you modify or cancel a pre-applied order free of charge until it is uploaded.
Limits and drawbacks
- Allotment is a lottery, not first come, first served. Being the first bid on the exchange does not help.
- You commit before seeing any subscription data. Some investors prefer to wait for the first day's numbers on the IPO page.
- If the broker's upload fails, for example because of a wrong UPI ID, you may only find out later.
- Pre-apply depends on the broker; not every broker offers it for every issue, especially some SME IPOs.
Mistakes to avoid
- Treating the pre-apply confirmation as a completed application. It is only a queued order until you approve the mandate.
- Pre-applying with one broker and then applying again with another. Two bids from the same PAN in the same category are rejected.
- Entering a UPI ID that is not linked to your own bank account. The bid will be rejected even if the mandate is approved.
- Not keeping the balance ready. The amount is blocked when you approve, so it must be in the account at that moment.
- Ignoring the order status. Check the IPO order book on opening day for messages such as "bid placed" or "mandate pending".
Each IPO page shows the opening and closing dates in its timeline, and alerts on Telegram, WhatsApp or the browser can remind you when the issue opens, which is a good moment to look for the mandate.
Frequently asked questions
Does pre-applying increase my chance of getting an IPO?
No. Every valid bid received before the deadline goes into the same allotment draw, whenever it was placed.
Is money blocked when I pre-apply?
No. Money is blocked only when you approve the UPI mandate, which arrives after the issue opens and the broker sends your bid to the exchange.
I pre-applied but did not get the mandate on opening day. What should I do?
Check the bid status in your broker's IPO order book. If it shows a failure, or nothing has arrived by the next day, cancel and apply again, or use net-banking ASBA.
Can I change or cancel a pre-applied bid?
Most brokers allow you to modify or cancel it before it is uploaded, and you can also modify or cancel it during the issue period like any other bid.
Can I pre-apply for SME IPOs?
Some brokers offer pre-apply for SME issues and some do not. Check your broker's IPO section for the specific issue.