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
- 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.
UPI IPO Apply
- 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.
