The initial public offer (IPO) of online food delivery platform, which went Live yesterday, saw the retail segment being subscribed 2.9 times the number of shares on offer. If you are one of the retail subscribers who have made a bid in the Zomato IPO yesterday or had pre-bid earlier, you’d have entered a UPI ID during the application process. Now, you’ll begin to get requests for a UPI mandate, which you’ll need to complete in your chosen UPI app to block the amount in your bank account. But how exactly do you do not, and not lose out on the allotment, which hopefully will come your way, even in the case of oversubscription? The UPI mandate process remains largely the same for all platforms, including Groww, Zerodha and Upstox.
When you’d have submitted your bid, you would have been asked for a UPI ID, to complete the bid application. This is to link a payment method, which you’ll use later to complete the allotment of shares, if successful, in the bidding. The UPI ID is linked with your bank account, which is KYC, or know your customer, process compliant. Each payment app, such as Google Pay, PhonePe, Paytm and BHIM have their own unique process for finding and accepting the UPI mandates. For Zomato IPO bidders, they will be getting these UPI mandate requests now, via SMS, on the registered phone numbers. “Within 24 hours, you will get a UPI mandate request on your UPI app,” says Groww, in their FAQs.
If you have chosen your UPI ID linked with the Google Pay app, you’ll need to head to the Google Pay app to complete the mandate block. Open Google Pay and select Profile > Settings > One Time Mandate. You will find the Zomato IPO and any other active UPI mandates listed here, and you can complete the process from here. Post this, you’ll get a confirmation from your bank if the process is successful. Google Pay does warn users before they punch in their UPI pin to complete the transaction, that entering the wrong pin will invalidate the mandate and you’ll have to restart the process again.
For those of you whohave selected the PhonePay UPI ID, you’ll need to open the PhonePe app on your phone. You will likely see a pop-up immediately after the app loads, and you’ll have to select View Details here. This will load a screen where the amount, validity and any repetition will be listed here. Click on Accept to complete the process. Again, be careful about the UPI pin your punch in.
If you are making the UPI mandate payment through the BHIM app, you need to open BHIM on your phone and look for a section called Mandates which is usually listed on the main screen itself. The BHIM app does it best in terms of listing mandates up front, and not have to go searching for it in settings. You’ll see all the mandates listed here, and you can see the details and complete the payment.
Things seem to work a little differently on Paytm. Open the Paytm app on your phone and then tap on Paytm Bank. Anyone who doesn’t have a Paytm Payments Bank account must open an account before they can proceed. Within the Paytm Payments Bank menu, select UPI linked accounts > UPI automatic payments. Here you will see the UPI mandate listed. Click on that, check the details and verify.
What happens if the shares are not allotted? “If the shares are not allotted, the blocked amount is released within 10 days from the allotment date,” says Upstox, in their FAQs. Most trading apps also say that in case shares are not allowed and the blocked amount isn’t released, users need to contact the bank for redressal and a solution.