IPO Application Methods - Apply IPO through ASBA

ASBA Full Form

ASBA full form is Application Supported by Blocked Amount, a facility that allows investors to apply IPO through ASBA without transferring funds upfront. Instead, the application amount remains blocked in the investor’s bank account until the allotment process is completed. This ensures interest earnings continue on the blocked amount while providing a secure, streamlined, and SEBI-mandated method of applying for public issues. 

ASBA Eligibility

ASBA eligibility includes all investors who hold a valid PAN, have a bank account with an ASBA-enabled branch, and maintain sufficient funds to block the application amount. When you apply IPO through ASBA, your bank simply earmarks the required amount instead of debiting it immediately, making the process secure and efficient. Both retail and non-retail investors can use ASBA, provided they follow KYC norms and apply through authorised channels.

ASBA Benefits

ASBA offers several benefits to investors who apply IPO through ASBA, making the process safer and more convenient. The application amount remains blocked in the bank account instead of being transferred, ensuring you continue earning interest until allotment. It also eliminates refunds, reduces processing time, and allows easy tracking of your application status. Since funds stay under your control and are only debited if shares are allotted, ASBA adds a strong layer of transparency and efficiency to IPO investing. 

How can you apply for an IPO through ASBA?

You can apply for an IPO through ASBA in two ways - online and offline.

Here is the online process of applying for an IPO through ASBA

Step 1: Open the bank website and log in with your ID and password

Step 2: Visit the 'Demat Services' section and click on 'New IPO.'

Step 3: Select the IPO name from the list of open issues.

Step 4: Enter the lot size (quantity) and price and submit your bid.

Step 5: Approve the mandate request by the bank.

Step 6: Your application is accepted, and the application ID is generated.

It is wise to retain the application number for your reference, as it may be required to track the IPO allotment status or resolve any application-related queries.

Here is the process to apply for an IPO offline:

Step 1: Visit your bank and collect the IPO application form.

Step 2: Fill in details like investor's name, PAN number, Demat account number, lot size, bid price, and other details on the application form. Also, sign the mandate form instructing the bank to block the amount.

After you submit the IPO application form, the bank uploads your application details to the bidding platform. Ensure that the information you have entered in the IPO application form is 100% correct, else your application will be summarily rejected.

5paisa makes IPO investing Simple

While ASBA is certainly one of the best ways to apply for an IPO, you can take the convenience one step further. Visit 5paisa's official website to experience a one-click IPO application. 5paisa offers a UPI-based IPO application to help you apply conveniently without requiring a net banking account. Click here to know how to check IPO Allotment Status