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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 After allotment, the money will either be withdrawn if the allotment was successful or it will be released if no allotment was made.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.
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;
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;
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.
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.
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;
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
Do you have an account in ICICI Bank, let’s check out how to apply for IPO with ICICI net banking ASBA process;
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.
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.
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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.
Follow these steps to apply for an IPO offline
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.
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;
Note: Some banks may not accept the cancellation request till 5:00 PM on the last day of IPO bidding.
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.
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.
ASBA IPO Apply
UPI IPO Apply
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.