IPO Application Methods - Apply IPO through ASBA

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Introduction

The process of applying for IPOs has undergone a massive change. Earlier, investors had to visit the broker's office to collect the IPO application form. The form filling process was manual and took a lot of time. Moreover, they had to write a cheque and submit other documents with the application. And, inadvertent clerical mistakes could not be ruled out. 

Fast forward to today, and you can experience a super-fast IPO application process, thanks to ASBA or Application Supported by Blocked Amount. Earlier, ASBA was optional for retail investors but became mandatory for all categories of public issue investors (including retail) from January 2016, as per SEBI guidelines. In this article, let’s look at a step by step process of applying for an IPO through ASBA and what are the benefits of applying through ASBA.

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.

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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

Disclaimer: Investment in securities market are subject to market risks, read all the related documents carefully before investing. For detailed disclaimer please Click here.

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Krishca Strapping Solutions Limited

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  • Date Range 23 Oct- 27 Oct’23
  • Price 23
  • IPO Size 200
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