Using HDFC Sky’s one͏ click UPI mandates͏ to͏ secure IPO allotments

Learn how HDFC Sky’s One Click UPI Mandate simplifies IPO applications in India, speeds up approvals, reduces errors, and improves your chances of successful allotment.

By Advertorial Team

Initial Public Offerings (IPOs) are investment opportunities in the financial market that allow mainstream investors to own a part of a company right at the beginning of its journey on the stock market. In India, the regulatory framework concerning IPO applications has changed drastically in the last few years, and now the process is much more straightforward and safer than ever before.

An integral aspect of this evolution is the use of UPI mandates, particularly the One Click UPI Mandate feature on the HDFC Sky app that not only simplifies IPO applications to a great extent but also improves chances of a successful allotment.

͏Why One Click UPI Mandates Matter for IPO Investors

In the past, applying for an I͏PO required filling of paper forms, manual work, or you had to navigate banking portals and block the funds as per SEBI͏’s ASBA (Applica͏ti͏ons Supported by Blocked Amount) guidelines. ASBA ensures that the application money for the IPO remains in your bank account, earning interest, and is debited if your bid is accepted. This was a big step up from outdated cheque-based methods, but it still involved multiple steps and gave space for human error.

The introduction of UPI-based applications for IPOs transformed the entire process. With UPI, you get a real-time, secure payment authorisation directly on your mobile phone. Your IPO application is processed only when you approve a UPI block mandate in your payment app. HDFC Sky has taken this convenience even further by integrating a One Click UPI Mandate feature in its app, which you ͏can use to apply for IPOs quickly, accurately and confidently.

This one-click process matters because:

Speed ͏matters in IPOs. IPOs can be oversubscribed in ͏a matter of minutes. A fast and smooth application process ensures that you do not miss out because of last-minute slowdowns.

Reduced manual errors: The system fills in most application fields automatically, greatly minimising errors like incorrect bid entries or wrong UPI IDs.

Blocking funds ͏instantly: With the One Click mandate, the necessary funds are blocked quickly, minimising the risk of a delayed or rejected application.

You stay in control: You ͏still need to authorise the UPI mandate on your payment app, e., you explicitly confirm the transaction.

In short, this feature combines automation with intelligent control, allowing IPO applications to be completed much faster and more reliably.

What Exactly Is the One‑Click UPI Mandate Feature?

Before we step through the practical process, let’s break down what the One‑Click UPI Mandate feature actually does.

When an IPO opens, HDFC Sky displays a pop‑up notification within the app. This pop‑up alerts you that the IPO is live and prompts you to apply. With a single tap, the app auto‑fills all essential IPO application details like your PAN, Demat account linked to HDFC Sky, bid price, and quantity — based on what you choose. Then, it sends a pre‑filled UPI mandate request to your UPI app (such as Google Pay, PhonePe, or BHIM) that lets your bank block the required amount instantly. If you approve this mandate request, the application is successfully submitted.

This process typically takes place in under a minute and cuts out repetitive manual data entry. It also reduces the common points of friction during IPO applications — and increases the likelihood that your application reaches the exchange correctly and on time.

Step‑by‑Step Guide to Applying via HDFC Sky One‑Click UPI Mandate

Here’s a practical roadmap you can follow the next time you plan to apply for an IPO using this feature:

1. Log into the HDFC Sky App

Open your HDFC Sky trading app on Android or iOS and sign in with your credentials. Ensure that the app is updated to the latest version so that the One‑Click feature works smoothly.

2. Go to the IPO Section

From the main menu, tap Indian Stocks, IPO. This brings up a list of all IPOs that are currently open for subscription under the ‘OPEN’ tab. You can scroll and choose the IPO you want to invest in.

3. Select Your IPO and Enter Details

Once you select an IPO, the app shows all relevant details — such as the issue price band, opening and closing dates, lot size, and company background. Here, you need to:

Choose your investor category (most retail investors choose ‘Retail’).

Enter the number of lots you want to bid for.

Opt for the Cut‑off price, which typically enhances your chances of allotment because it makes your bid valid for any final price within the IPO’s declared price band.

4. Enter Your UPI ID

Provide a valid UPI ID linked to your bank account. This ID will be used to generate the UPI block mandate. Ensure it is current and ends with an accepted suffix such as @okhdfcbank, as SEBI has instituted stricter verification rules for UPI handles to improve security.

5. Submit Your Application

Review the filled‑in application carefully. If everything looks correct, tap Place Order. HDFC Sky will instantly generate a UPI mandate request.

6. Approve the Mandate in Your UPI App

Switch to your UPI payment app and approve the block mandate request before the deadline. This is essential; if you don’t approve the mandate in time, your IPO application will be rejected.

Once approved, your funds are marked as blocked in your bank account. They earn interest while they remain blocked — and are only debited if you receive an allotment.

How the One‑Click Mandate Helps Secure Allotments

A common question is: Does using this feature actually improve my chances of getting an allotment?

The honest answer is that no technology can guarantee allotment — because allocation depends on demand, investor category, and subscription levels. But this feature does the next best thing: it improves your chances by removing unnecessary delay and errors.

Here’s how:

Speed Is a Real Advantage

IPOs can get crowded very quickly. A smooth, fast application means you avoid lag at crucial moments. Since HDFC Sky pre‑fills most of your application details, you spend less time typing and more time ensuring your application goes through before the market rush peaks. Faster applications often face fewer technical drops and timeouts.

Reduces Manual Errors

Manual IPO forms can be error‑prone, from missing characters in your UPI ID to incorrect bid prices. One‑Click UPI Mandate automates this data entry based on your saved account details, removing a common cause of rejected applications.

Instant Mandate Blocking

The moment you approve your mandate, the required funds are blocked under the ASBA process. This translates into pre‑validated payment clearance, which means the exchange can process your application without waiting for further confirmation. Since the funds are already blocked, the system considers your application valid and ready for computation during the allotment phase.

Cut‑off Price Advantage

Choosing the cut‑off price, a recommended option for retail bidders, means your bid remains valid for any price the issue finalises at. Many investors mistakenly pick custom prices that fall outside the eventual issue pricing. Using the cut‑off price removes this complication and improves the chance that your bid meets all criteria during allotment rounds.

Real‑World Guidance and Practical Scenarios

To better understand how to use the One‑Click UPI Mandate feature, let’s walk through a few real‑world situations:

Scenario A: You’re Applying for a Popular IPO

Imagine an IPO from a well‑known brand opens at 10 AM. You log into HDFC Sky at 10:02 AM, select the IPO, choose your lot and cut‑off price, and instantly generate the UPI mandate. Within moments, you approve it in your UPI app. The entire process takes less than a minute. Because you were swift and error‑free, your application gets accepted and counted in the allotment. In many oversubscribed IPOs, timing matters, and this process helps you capture that edge.

Scenario B: You Forget to Approve the Mandate

Here, you complete your application in HDFC Sky but forget to approve the mandate in your UPI app in time. In this case, the IPO application is considered invalid and gets rejected. This highlights an important rule: manual mandate approval is still required even with One‑Click; the automation helps complete the form, but you must still confirm the payment.

Scenario C: You Enter the Wrong UPI ID Manually

Without the One‑Click feature, you might mistype your UPI ID. If that incorrect ID gets submitted, the bank cannot generate the mandate, the funds are not blocked, and your application fails. With HDFC Sky’s pre‑filled details, this risk drops significantly.

Common FAQs About HDFC Sky One‑Click IPO Applications

Do I need a Demat account?

Yes. To apply for an IPO through HDFC Sky, you need a linked Demat and trading account. This ensures any allotted shares are credited to you electronically.

Do I earn interest on the blocked funds?

Yes. ASBA rules allow your funds to remain in your bank account, earning interest until allotment or refund.

What happens if I don’t get allotment?

If you don’t get any shares, the blocked amount is released back to your bank account after the allotment process is complete.

What UPI apps are supported?

Most mainstream UPI apps, such as Google Pay, PhonePe, BHIM, and others, support IPO mandates, provided the UPI ID is properly linked and valid.

Final Thoughts

HDFC Sky’s One‑Click UPI Mandate makes IPO investing fast, reliable, and user‑friendly. By combining automation with UPI and ASBA security, it removes manual hassles and accelerates applications. This feature helps both new and experienced investors participate confidently, making the IPO process smoother, more predictable, and rewarding. With One‑Click, you can apply quickly for any IPO, knowing the technology works seamlessly to support your investment journey.

Note To Readers

This is an advertorial published as part of a marketing initiative. This has no editorial input or editorial involvement by CNBC-TV18 or its affiliates. No CNBC-TV18 journalist was involved in writing, researching or editing this article. Views and opinions expressed, and ideas discussed are solely those of HDFC Sky and do not reflect the opinions, views or beliefs of the website or its affiliates.