IPO Bidding Time- All You Need to Know 

When you apply for an Initial Public Offering, timing is as important as the company you choose. Knowing the precise IPO bidding time, the typical IPO application time windows, and what the IPO closing time today means can prevent last-minute rejections and help you manage your funds more effectively. For many retail investors in India, the rules around ASBA, UPI mandates and bank cut-offs are unfamiliar and can cause unnecessary anxiety if not understood.

In this piece we will learn when exchanges accept applications, why banks and brokers often enforce earlier cut-offs on the final day, and how UPI confirmations influence whether your application is valid. The aim is to give you practical timing information and tips that you can use before and on the last day of subscription. By following these steps, you reduce the risk of missed applications and blocked funds, and improve the chances that your bid will be processed correctly. 

Read on to make your IPO bids on time.

What Is IPO Bidding Time? 

IPO bidding time refers to the window during which investors can submit bids for shares in an IPO. When a private company decides to go public, it invites investors to apply for its shares; investors do this by submitting bids through their bank (via ASBA) or via broker/trading applications.

Bidding involves specifying how many shares (or “lots”) you want and at what price (if it’s a book-built issue). There are two broad pricing methods in IPOs:

1. Book-building: Here, the company provides a price band, and investors place bids within that range.
2. Fixed-price: Here, the IPO price is fixed, and every investor bids at the same price.

Once the bidding period ends, underwriters and the company look at all bids and determine the cut-off price (i.e., the final issue price) based on demand. Then, shares are allotted accordingly - bids at or above the cut-off price may be eligible for allotment, subject to the investor category (retail, high-net-worth, institutional) and subscription status.

In cases of oversubscription (when demand exceeds supply), allotment is often done via a lottery for retail investors. After allotment, funds from ASBA (if used) are either debited (if allotment happens) or unblocked (if not allotted).

Knowing exactly when you can bid ensures your application is submitted properly and processed on time.

ASBA Cut-Off Timings for IPO Applications 

ASBA (Applications Supported by Blocked Amount) is the typical method to apply for an IPO in India. Through ASBA, you authorise your bank to block the required application amount in your savings or current account. The money remains blocked until allotment is finalised. If you are allotted shares, the exact amount is debited; if not, the blocked amount is released.

Although exchanges accept bids between 10:00 AM and 5:00 PM on the bidding days, your bank may impose an earlier cut-off time on the last day of the IPO.

Here are some typical ASBA cut-off times (on the final day), based on current and recent practice:

Because these timings differ from bank to bank, you must always check with your bank or broker for the exact cut-off on the last IPO day.

Online IPO Application Timings (Via Broker or Trading App) 

If you apply for an IPO through an online broker or trading application, the process and timing are somewhat more flexible, but still governed by certain constraints:

• Officially, stock exchanges allow IPO applications between 10:00 AM to 5:00 PM on working days.
• Many broker platforms let you place your application even outside these hours (for example, after market hours), but those applications are only processed when the exchange’s systems are open. 
• On the last day of bidding, although the exchange window remains open until 5:00 PM, your broker or bank may impose its own earlier cut-off to handle UPI mandates or ASBA confirmations.
• For UPI-based IPO applications, mandate confirmation i.e., you approving the UPI request, typically must happen by 5:00 PM on the closing day to be valid.

IPO Application Timings on the Last Day 

The last day of an IPO requires extra attention because this is the final opportunity to bid. Here’s a breakdown of what typically happens:

1. Exchange Deadline: The stock exchanges usually close the bidding window at 5:00 PM on the final day.
2. Bank / Broker Cut-Off: Many banks/brokers impose an earlier “last-day cut-off” to process all applications, block or confirm funds, and ensure they reach the exchange before 5 PM. These cut-offs are often between 2:00 PM and 4:30 PM, depending on the bank.
   • For instance, SBI’s cut-off is often ~2:00 PM, while Kotak and HDFC go until 4:00 PM or more.
3. UPI Mandate: If you're applying via UPI, you need to approve the mandate before the exchange’s final cut-off to ensure your application is counted.
4. Uploading Applications: According to SEBI guidelines, on the closing date, bids must be submitted between 10 AM and 3:00 PM, though they can be uploaded to the exchange until later (5 PM for retail and QIB, 4 PM for non-institutional).
5. Caution for Heavy Demand: SEBI itself notes that because many bids arrive on the last day, there's a risk that some applications may not be uploaded in time if submitted too close to the cut-off (due to high volume). 

Because of these constraints, investors are strongly recommended not to wait until the very last minute on the final day.

Why IPO Bidding Time Matters to Investors 

Understanding and respecting IPO bidding time is more than just a technical detail; it has several real implications for you as an investor.

1. Avoiding Missing the Application 

   
   If you don’t submit your application before your bank or broker’s cut-off, your bid may never reach the exchange, which means you miss out entirely.

2. Ensuring UPI Mandate Confirmation 
    

   For UPI-based ASBA, if you don’t confirm the mandate in time (especially on the last day), the application may be rejected. As per recent protocols, UPI mandates usually must be accepted by 5:00 PM on the final day.

3. Timely Blocking / Unblocking of Funds 
    

   With ASBA, your money remains blocked until allotment is confirmed. If you miss the cut-off or your mandate isn’t accepted, that could delay either blocking or unblocking of your funds.

4. Risk of Overload / Rejection 
    

   On the last day, many investors apply, creating a surge. If you submit too close to the cut-off, there is a chance your application may not get uploaded due to system limits. 

5. Opportunity to Gauge Demand 

   Some investors wait to see how strong the initial subscription from institutional or high-net-worth investors is before placing their own bid. But to do that safely, you must know your broker’s last-day cut-off and UPI mandate timing to act and apply after assessing demand momentum.

6. Liquidity Considerations 

   Because ASBA retains funds in your account in a blocked state (rather than debiting them immediately), knowing the timeline helps you manage your cash more efficiently. You don’t want your money locked up longer than necessary, nor do you want to risk non-allotment because of a missed cut-off.

Conclusion 

IPO bidding time is a crucial but often overlooked aspect of investing in public issues. While the stock exchanges officially accept bids between 10 AM and 5 PM, the real challenge lies in the last-day cut-off imposed by banks and brokers. These cut-offs, which often range between 2:00 PM and 4:30 PM, can vary significantly by institution and application method (ASBA vs UPI).

Understanding these timings ensures your application is submitted properly, your UPI mandate is confirmed, and your funds are either blocked or released in a timely manner. By being aware of your bank’s specific cut-off, applying early on the final day, and monitoring your application status, you improve your chances of a successful IPO bid.

Also Read: https://www.mstock.com/articles/initial-public-offering