Although there are ways such as ASBA facility of your bank that you can use to open an IPO without Demat Account. It is still advisable to have a Demat Account.
Yes, you can apply for an IPO and receive the shares through the physical form itself. You can easily apply for an IPO through the ASBA facility of your bank. However, it is recommended to get the shares in Demat form as the allotted shares through an IPO are only tradable in the Demat form.
If you looking to apply for an IPO having a security size of 10 crore INR or more, then it becomes mandatory to have a Demat account to apply for an IPO.