The Indian Primary Market is a vibrant space, offering opportunities to invest in promising companies right from their initial public offering (IPO). Zerodha, as one of India’s leading discount brokers, provides a seamless platform for retail investors in Lucknow and across the country to participate in these IPOs from the comfort of their homes. 

However, the regulatory landscape is constantly evolving, and 2025 brings new SEBI (Securities and Exchange Board of India) guidelines that investors need to be aware of. This detailed guide is here to help you navigate the process of applying for IPOs on Zerodha in 2025. Plus, we’ll shine a light on the important new SEBI regulations you’ll need to keep in mind along the way.

Why Invest in IPOs Through Zerodha?

Zerodha’s user-friendly interface, competitive brokerage charges (including zero commission on IPO applications), and efficient online process make it a preferred choice for many IPO aspirants. Applying through Zerodha eliminates the need for physical forms and branch visits, making the entire process convenient and accessible from anywhere in Lucknow.

Understanding the New SEBI Regulations for IPO Applications in 2025 (Key Highlights):

While the core process of applying for IPOs on Zerodha remains largely digital, SEBI continuously refines the regulations to enhance investor protection, streamline the process, and improve transparency. Some potential new regulations or areas of increased focus in 2025 might include:

• Enhanced Retail Investor Participation Limits: SEBI might introduce changes to the maximum application amount for retail investors to encourage broader participation. Stay updated on any such revisions.
• Stricter Disclosure Norms: Expect even more stringent disclosure requirements for companies going public, providing investors with richer information for their decision-making. Zerodha will likely integrate these disclosures seamlessly within their platform.
•  UPI Mandate Enhancements: The Unified Payments Interface (UPI) has emerged as the go-to method for retail investors to make payments for IPO applications.SEBI might introduce further enhancements to the UPI mandate process for increased security and efficiency.
• Revised Allotment Rules: SEBI may tweak the allotment process, especially for oversubscribed IPOs, to ensure fairer distribution among retail investors. Keep an eye out for any changes in the allotment methodology.
• Increased Focus on Anchor Investor Lock-in Periods: While primarily affecting institutional investors, changes in anchor investor lock-in periods can influence post-listing price stability, indirectly impacting retail investors.

Step-by-Step Guide: Applying for IPOs on Zerodha from Home (2025 Compliant):

Here’s a detailed guide on how to apply for IPOs on Zerodha using their Kite platform, keeping in mind the potential new SEBI regulations in 2025:

Prerequisites:

1. Zerodha Demat and Trading Account: You need to have an active Demat and trading account with Zerodha. If you don’t have one, you’ll need to complete their online account opening process.
2. UPI ID: Your UPI ID must be linked to your bank account. Ensure the UPI ID is active and capable of handling mandate requests.
3. Sufficient Funds: Ensure you have sufficient funds in your linked bank account to cover the application amount. The funds will be blocked (not debited) until the allotment process is finalized.

The Application Process on Zerodha Kite:

Step 1: Login to Zerodha Kite:

• Open the Zerodha Kite web platform (kite.zerodha.com) or the Kite mobile app on your smartphone.
• Enter your User ID and password, and complete the 2FA (Two-Factor Authentication) process.

Step 2: Navigate to the IPO Section:

• Once logged in, look for the “IPO” section within the Kite platform. This is usually located in the “Portfolio” or “Orders” tab on the web platform, and often has a dedicated icon on the mobile app’s menu.

Step 3: View Open IPOs:

• The IPO section will display a list of currently open IPOs. You’ll see details like the company name, issue open and close dates, price band, and the minimum and maximum bid quantities.

Step 4: Select the IPO You Want to Apply For:

• Click on the specific IPO you are interested in applying for to view more detailed information, such as the prospectus summary, key dates, and other relevant details. Pay close attention to the prospectus and any updated SEBI disclosures for 2025.

Step 5: Click on “Bid”:

• Once you’ve reviewed the IPO details and decided to apply, click on the “Bid” button.

Step 6: Enter Your Application Details:

• Investor Type: Select “Retail.”
• UPI ID: Enter your active UPI ID linked to your bank account. Ensure this UPI ID is correct as all mandate requests will be sent to this ID.
• Quantity: Enter the number of lots you wish to apply for. You can bid for a minimum of one lot and up to a maximum specified for retail investors (this might be subject to new SEBI regulations in 2025).
• Price: You have the option to bid at a specific price within the price band or choose the “Cut-off Price.” Retail investors are generally advised to select “Cut-off Price” to maximize their chances of allotment, as it indicates their willingness to pay the final issue price determined by the book-building process.
• Bids (Optional): Zerodha allows you to place up to three bids at different price points within the price band.This can really come in handy if the cut-off price happens to fall within your budget.

Step 7: Accept the Terms and Conditions:

• Read the terms and conditions carefully and tick the checkbox to confirm your acceptance.

Step 8: Submit Your Application:

• Click on the “Submit” button to finalize your IPO application on Zerodha.

Step 9: Authorize the UPI Mandate:

• After submitting your application on Zerodha, you will receive a UPI mandate request on your UPI app (e.g., BHIM, Google Pay, PhonePe). This is a crucial step.
• Open your UPI app and find the mandate request from your bank or Zerodha’s clearing member.
• Authorize the mandate by entering your UPI PIN. The amount you applied for will be held in your bank account until the allocation process is complete.completed. Failure to authorize the UPI mandate within the stipulated time will result in the rejection of your IPO application.

Step 10: Track Your Application Status:

• You can track the status of your IPO application on the Zerodha Kite platform under the “IPO” section or the “Orders” tab. You’ll be able to see if your application was submitted successfully and the status during the allotment process.

Post-Application Process:

• Allotment: Based on the oversubscription and the allotment rules (which might see revisions under new SEBI regulations in 2025), you may or may not receive an allotment of shares.
• Refund/Unblocking of Funds: If you receive an allotment, the corresponding amount will be debited from your bank account, and the shares will be credited to your Zerodha Demat account. If you don’t get an allotment, don’t worry the blocked funds in your bank account should be released within a few days.
• Listing: The allotted shares will be listed on the stock exchanges on the specified date, after which you can trade them through your Zerodha trading account.

Key Things to Remember in 2025:

• Stay Updated on SEBI Regulations: Keep yourself informed about any new rules or guidelines issued by SEBI regarding IPO applications. Zerodha will likely provide updates on their platform and through their communications.
• Read the Prospectus Carefully: Before applying, thoroughly read the IPO prospectus to understand the company’s financials, risks, and growth prospects.
• Apply Before the Deadline: Ensure you submit your application and authorize the UPI mandate before the IPO closing date and time.
• As a retail investor: you’re allowed to submit just one application for each PAN card.
• Make sure you have enough funds and the right UPI ID: Take a moment to verify that your linked bank account has sufficient balance and that you’ve entered the correct UPI ID.

Applying for IPOs on Zerodha from home in 2025 is a convenient process. By understanding the potential new SEBI regulations and following this step-by-step guide, you can participate in the primary market effectively and potentially benefit from the growth of emerging companies. It’s really important to do your own research before jumping into any IPO investment.

Also read- https://harnews24.com/what-are-the-opportunities-and-risks-for-retail-investors-in-invits-and-reits-in-india/

Also read- https://harnews24.com/legal-way-to-deposit-more-than-%e2%82%b91-5-lakh-in-ppf-including-tax-benefits/

FAQs

Q1. What are the main requirements to apply for an IPO on Zerodha from home in 2025?

The main requirements to apply for an IPO on Zerodha in 2025 are an active Zerodha Demat and trading account, an active UPI ID linked to your bank account, and sufficient funds in your bank account to cover the application amount for blocking. Under new SEBI regulations in 2025, you should also be aware of any updated guidelines that might affect application limits for retail investors or the UPI mandate process.

Q2. Why is it so important to authorize the UPI mandate in the Zerodha IPO application process, particularly with the new SEBI regulations coming in 2025?

Authorizing the UPI mandate in the Zerodha IPO application is a mandatory step as it’s the primary mode of payment for retail investors as per SEBI regulations. Under new SEBI rules in 2025, the UPI mandate process might be further enhanced for security and efficiency. If you fail to authorize the mandate request on your UPI app, your IPO application will be rejected because the funds will not be blocked