ASBA or Applications Supported by Blocked Amount is a facility offered by banks for applying for IPOs. As part of the ASBA process, banks enable their customers to subscribe to an IPO via Netbanking.
Do you want to bid for an IPO with your bank but don’t know how? Here is a complete step-by-step guide on how to apply for an IPO through the ASBA process either online or offline, the timeline for applying for an ASBA IPO, the ASBA application form, the charges, how to check the allotment status and much more.
If you submit an IPO bid through ASBA, your bank account will be blocked up to the IPO application amount. You cannot dispose of the blocked funds, but you will receive interest on them. After allotment, the money will either be withdrawn if the allotment was successful or it will be released if no allotment was made.
Before we proceed, let us first understand what IPO ASBA means.
ASBA full form is Applications Supported by Blocked Amount. It is a mechanism developed by SEBI that allows you to invest in IPOs, FPOs and rights issues online through your bank account.
The ASBA IPO application process authorizes your bank to block the IPO application amount in your bank account till allotment. Once the allotment has been made and you have received the allotment of shares, the funds for the allotted shares will be deducted from your bank account; however, in the event of non-allotment, the funds will be unblocked.
As long as the funds remain blocked, you will continue to receive interest on the blocked amount.
IPO Apply through ASBA Process
With the ASBA procedure, you can easily and conveniently submit, modify or cancel your IPO bid through your Netbanking account. Here you will find the steps to apply for an IPO online through ASBA;
Log in to your net banking portal
Select the IPO of your choice.
Recheck and place the order.
Accept the terms and conditions and submit IPO bid.
Once submitted, IPO bid amount will get blocked in your bank.
Now, your bank will send the IPO bid to the stock exchange.
Exchange will accept the bid and send an application number to bank.
Bank will then notify customer about successful bid.
Once issue closes, exchange will share IPO bid details with the IPO registrar.
Registrar decides the IPO allotment.
You can sell allotted IPO shares on or after the IPO listing.
In case of no allotment, funds will be released back and reflected in your bank balance.
In general, the IPO window remains open for subscriptions during the subscription period from 10:00 AM to 5:00 PM. However, if you invest in an IPO through ASBA, the last time to submit an IPO bid may be even before 5:00 pm. The IPO apply time through ASBA may also vary from bank to bank.
Most banks only offer the ASBA IPO application facility till 2:00 pm or 3:00 pm on the day the issue closes. This means that the last time or cut-off time for submitting IPO bids is 2:00 pm or 3:00 pm.
IPO Apply ASBA cut-off time by popular banks;
HDFC Bank: Retail: 4:00 PM, HNI: 3:30 PM
Kotak Mahindra Bank: 2:00 PM
ASBA IPO Eligibility or who can Apply?
Regardless of whether you are a retail investor or an HNI (High Net Worth Individual), you can subscribe to an IPO through the ASBA process if you meet the following requirements. Find out whether you are eligible to make an IPO bid through ASBA or not.
You must be an Indian citizen.
You must have a valid PAN card.
You also need a trading account to sell allocated shares.
A bank account with self-certified syndicate bank (SCSB) to bid for an IPO through net banking ASBA.
Yes, participating in an IPO with ASBA-Netbanking is free of charge. If you have a bank account with an SCSB, such as HDFC, ICICI, SBI or Axis Bank, you can place IPO application at zero cost.
Check ASBA IPO Allotment status online to know whether got the allotment or not. Here are the steps on how to check ASBA IPO application status;
Visit to the IPO Allotment status.
Click on the IPO, you want to check allotment for.
Tap on the IPO allotment status.
The page will take you to the registrar’s website.
Select the IPO name and enter your PAN number.
Submit it and share allotment details will be displayed.
Once shares got listed, you can sell them on the exchange.
You can also fill out the offline ASBA IPO application form to subscribe to an IPO.
IPO ASBA e-form pdf is available for download on both the BSE (Bombay Stock Exchange) and NSE (National Stock Exchange) website.
You can obtain the ASBA IPO form from any of these exchanges, fill in the required details, enclose the required amount of cheque and submit it at the nearest bank branch.
Your bank will then upload the bid details to the official IPO bidding platform. Once your bid is uploaded, the bank will block the IPO application amount in the bank account.
ASBA IPO Bid-cum Application form download on BSE
ASBA IPO Bid-cum Application form download on NSE
How to Apply IPO online through ICICI Bank ASBA
Do you have an account in ICICI Bank, let’s check out how to apply for IPO with ICICI net banking ASBA process;
Log in to your net banking account with ICICI Bank.
Under the investment and insurance tab, go to invest online.
Click on “Invest Now” option in online IPO, rights issues, & call money.
Apply for IPO & Rights issues tab will be displayed with pre-filled account number and customer name.
Select IPO and tap on proceed.
Accept to the terms & conditions and proceed.
An online ASBA IPO application form will be displayed on the screen.
Once submitted, the IPO bid amount will get blocked.
Note: You can even make pre IPO apply in ICICI Bank i.e., applying for an IPO before opening date. Once IPO opens for subscription, the bank will submitted IPO bid to the exchange. You can check the Pre-IPO order application status in the IPO order tab.
ASBA IPO Apply Online with HDFC Bank
Log in to HDFC Bank net banking portal.
Select the “IPO Application” option from the bottom left menu.
Select the IPO you want to apply for.
Enter depository details, bid quantity, and price.
Recheck and submit the order.
Accept the terms & conditions and your bid will be placed on the exchange.
Easy, seamless and convenient process to invest in IPO through your bank
No charges to bid for an IPO via ASBA net banking process
Banks provide interest on the blocked IPO amount so there is no loss of interest.
In case of no allotment, money will be instantly released back to your bank account.
Hope you are now aware of the IPO investment through Net Banking ASBA facility.
The ASBA process is not only tech savvy and less time consuming but also offers you an interest benefit on the amount locked in.
Unlike the UPI-IPO process where you have to accept the UPI mandate to successfully make an IPO bid. In the ASBA process, the IPO application amount is blocked immediately after the IPO bid is submitted.
Frequently Asked Questions
Can I Apply IPO through ASBA?−
Yes, if you have a demat + trading + bank account, you are eligible to place IPO applications with ASBA. In this process, you simply have to log in to your internet banking account, search for the IPO option, and submit bid in your choice of IPO.
Once bid get placed, the IPO application amount will get blocked in your account till allotment finalizes by registrar. In case of successful allotment, blocked amount will be deducted otherwise unfreeze to your account. You can now use these funds for any purpose.
How to apply IPO offline with ASBA?+
Follow these steps to apply for an IPO offline
Download the ASBA IPO e-form from BSE or NSE
Fill out details like bidding quantity or price.
Enclose a cheque of the IPO bidding amount with the ASBA IPO form.
Submit it to the nearest branch.
Once done, your bank branch will upload the details to the electronic IPO bidding platform and the amount will then get blocked in the bank account till allotment.
How to Cancel ASBA IPO Application?+
You can cancel the IPO request placed through ASBA net banking online. There are no charges to withdraw or cancel IPO bid. IPO cancellation request can be placed only during the IPO subscription period. You cannot cancel your bid after the issue closure.
Here’s how to cancel ASBA IPO application;
Log in to your net banking account.
Search for the IPO section.
Go to the order book option.
Select the IPO order, you want to cancel bid for.
You may find any of these options among cancel bid, delete bid, or withdraw application.
Click on the given option.
And, your bid will be cancelled.
Note: Some banks may not accept the cancellation request till 5:00 PM on the last day of IPO bidding.
What is self certified Syndicate Bank?+
Self-Certified Syndicate Bank includes all the commercial banks who offer ASBA services to its customers. Get a full list of ASBA service offering banks on SEBI’s official website.
Which is better between ASBA or UPI IPO apply?+
ASBA and UPI are the two methods to apply for IPOs. In ASBA facility, IPO applications can be made through bank’s net banking portal whereas UPI method allows users to apply through your broker.
Does not require UPI ID as amount gets blocked instantly once the bid is submitted
Apply for IPO with your bank
All categories of investors be it retail or HNI (excluding anchor investors) can use ASBA to invest in IPO.
IPO bid can be placed with your broker
You need a valid UPI ID to authorize payment
Some brokers also offer pre-IPO apply, applying for an IPO before its opening date.
All Retail investors and HNI investors (upto bidding amount of Rs 5 lakh) can subscribe IPO via UPI method.
How to apply IPO without ASBA?+
If you have not enabled net banking services to your account or you are facing any difficulty in the ASBA process, you can apply IPO using UPI (without ASBA).
If you have a demat and trading account with any broker, you can subscribe to an IPO using the UPI ID. All you need to do is provide your UPI virtual payment address and accept the payment mandate request sent to your UPI app. Once accepted, funds will be blocked till allotment.
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