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 After allotment, the money will either be withdrawn if the allotment was successful or it will be released if no allotment was made.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.
What is ASBA process?
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
- Go to the IPO option.
- Select the IPO of your choice.
- Tap on Apply option.
- Enter IPO bid details like quantity, price, and your demat account details.
- 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.
- If you receives allotment, blocked amount will be deducted and shares will be transferred to your demat account.
- 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.
ASBA IPO Timing
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;
- ICICI Bank: 3:00 PM
- SBI Bank: 2:00 PM
- Axis Bank: 3:00 PM
- HDFC Bank: Retail: 4:00 PM, HNI: 3:30 PM
- IndusInd Bank: 2:00 PM
- Kotak Mahindra Bank: 2:00 PM
- Bank of Baroda: 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.
- A Demat account is mandatory to keep and hold IPO shares electronically.
- 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.
ASBA IPO Apply Charges
No charges!
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.
All you need is a bank account with net banking services enabled for your account.
ASBA IPO Status
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.
- If you get the allotment, allotted shares will be credited to your Demat account.
- Once shares got listed, you can sell them on the exchange.
ASBA IPO Application Form
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.
- Fill out details i.e., investor type (Retail or HNI), Depository ID (CDSL or NSDL), Demat account details, and IPO bid quantity and price or select cut-off price.
- Tap on submit order.
- 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.
ASBA IPO Apply benefits
- 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.
Final Note
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.
