ASBA IPO Application | How to Apply IPO Through ASBA | 3 Best Bank Timing

Welcome to your guide to the ASBA IPO application! Are you ready to enter the world of Initial Public Offerings (IPOs) and discover a streamlined approach to the application process? Look no further! In this comprehensive guide, we’ll navigate the intricacies of the ASBA, or Blocked Amount Backed Application, and how it revolutionizes how you apply for an IPO.

Whether you are a seasoned investor or considering your first entry into the stock market, it is important to understand ASBA’s role in IPO applications. From demystifying the concept of ASBA to providing a step-by-step guide on the application process, we’ve got you covered.

In the following pages, we’ll explore the benefits of using ASBA, list the banks that support this efficient system, and discuss the best timing for your IPO applications. Get ready to unlock a simpler, more convenient IPO experience.

So, let’s unravel the intricacies of ASBA IPO application, bank timings and more and join us on this journey. Your next investment opportunity may be just a few pages away!

What is ASBA IPO Application?

ASBA abbreviated as Application Supported By Blocked Amount is an ASBA IPO application process developed by SEBI. It is an ASBA IPO application that has the authorization to block the money of the application in the bank account, to subscribe for the IPO issue. You cannot use the blocked amount for any purpose. However, you can continue to earn interest on the blocked amount. If you are a non-retail investor looking to invest in an IPO, it is mandatory to apply through ASBA.

As an investor, if you apply through ASBA IPO Application, your money is debited from your bank account only if your application is selected for allotment. If you do not get the IPO issue or the issue is withdrawn then it is refunded to your bank account. Since 2016, SEBI has directed that filling the ASBA form is mandatory if you want to invest in an IPO.

Know more about IPO

How to Apply for IPO Through ASBA

Any person possessing the following permitted items can invest in IPOs through ASBA IPO Application. If you are a retail investor, you can invest in IPO up to a maximum of 2 lakhs. Category of HNI & Institutional Investors has been allotted to invest more than 2 lakhs.

• Valid PAN Card number
• Demat account
• Trading account
• UPI ID
• Bank account

You can apply for IPO through ASBA IPO Application either online or offline, the detailed steps of which are given below.

Online Method

If you want to apply for IPO through ASBA IPO application online, you can do it yourself through net banking or through a broker.

through net banking

• First of all, log in to your respective bank’s net banking portal.
• After logging in, look for the ASBA IPO application tab or the IPO Application tab.
• Select the ‘Apply IPO’ option and select the IPO of the company you wish to bid for.
• Enter required details like PAN, price, quantity and demat account number.
• Submit an application. It is important to note that bids submitted before 2pm on a business day will be accepted on the same day. However, if the bid is placed after 2 pm, the bid is counted for the next day.

through a broker

• First, visit your broker’s website or app and log into your demat account.
• Look for the IPO section and click on it.
• A list of companies that have opened an IPO will appear. Select the company you want to bid for.
• Enter the lot size and bid price. If you want to increase your chances of allocation, bid at the cut-off price or the maximum price at the upper end of the price band.
• The next step is to enter your UPI ID and click on the ‘Submit’ button. However, you need to approve the transaction on your UPI app, which the exchange will approve later.
• The command notification will appear on the UPI app. Also, the money remains blocked till the IPO allotment date.

Offline Method

If you are unable to apply for IPO through ASBA online, you can also use the offline method using the steps mentioned below.

• First of all, you need to visit the nearest branch of your bank or broking firm.
• Fill the ASBA IPO Application form and provide the required KYC details.
• After submission, funds will be blocked. If you get shares only after the allotment process, the amount is debited from your bank account.

List of Banks Supporting ASBA IPO Application

Below is a list of some of the banks that supports ASBA IPO Application.

• Axis Bank
• Canara Bank
• Indian Bank
• ICICI Bank Ltd.
• Allahabad Bank
• CSB Bank
• Bank of Baroda
• Bank of India
• Indian Overseas Bank
• BNP Paribas
• Barclys
• Central Bank of India
• Bank of Maharashtra
• Deutsche Bank
• Andhra Bank
• Bandhan Bank

Benefits of Applying Through ASBA IPO Application

• When money is blocked in your bank account, you don’t lose interest income. You continue to earn interest on the blocked amount.
• ASBA eliminates the need to pay money through checks and demand drafts.
• ASBA facility is hassle free and there is no cost involved. You can easily apply through netbanking without submitting any physical documents.
• Investors need not worry about refunds. If there is no allotment of shares, the money is unblocked from your bank account for further use.
• The blocked amount is taken into account while calculating the average quarterly balance in the account.

ASBA IPO Application Timings

Banks approve ASBA IPO applications when the IPO is open for subscription. Online IPO applications are available from 10 am on the opening date of the issue to 5 pm on the closing date of the issue.

But most of the banks offer this facility only till 2 or 3 pm on the last date. Check bank wise IPO application cut-off time for more details.

Advantages and Disadvantages of ASBA IPO Application

Advantages

• The investor need not pay the application money through cheque, rather block his/her bank account to the extent of the application money, thereby continuing to earn interest on the application money.
• An investor need not worry about refunds, as only the proportionate amount of securities allotted in ASBA is withdrawn from the bank account when his/her application is selected for allotment after finalizing the basis of allotment.
• The customer can revise/withdraw the bid before the end of issue in the prescribed format with the bank.

Disadvantages

• The investor has to ensure that he/she has a bank account that offers online ASBA facility, otherwise one has to visit the branch and submit the ASBA form.
• Any investor who has a bank account in a bank that does not offer online ASBA facility, and the investor cannot visit the branch in person, stands to lose the opportunity.
• The process is also prone to error as the details (demat account number, depository ID or number of shares in the FPO) filled by the investor in the ASBA application cannot be validated by the bank. Therefore, any error in typos may result in possible rejection of the application.

Common Issues and Solutions of ASBA IPO Application

Insufficient Funds: This is the most common problem that occurs during an ASBA application. Make sure you have sufficient funds in your bank account to cover the application amount of the IPO you are applying for. If you do not have sufficient funds, your application will be rejected.

Wrong Bank Account Details: If you enter wrong bank account details, your application will be rejected. Make sure you double check your bank account details before submitting your application.

Technical glitches: Sometimes, technical glitches may occur during the ASBA application process. These obstacles may prevent you from submitting your application or cause your application to be rejected. If you encounter a technical glitch, try again later or contact your bank for assistance.

Late Submission: If you submit your ASBA application after the deadline, your application will be rejected. Be sure to submit your application before the deadline to avoid this problem.

ASBA mandate not registered: If you have not registered your ASBA mandate with your bank, you will not be able to apply for IPO using ASBA. To register your ASBA mandate, you need to contact your bank and provide them with your bank account details and PAN number.

Invalid bid quantity: If you enter an incorrect bid quantity, your application may be rejected or you may be allotted fewer shares than requested. Make sure you enter the correct bid amount before submitting your application.

BID VALUE TOO LOW: If you bid too low, your application will not be selected for allotment. Make sure you bid a price that is realistic and has a good chance of being selected.

Apart from the above, here are some additional tips to avoid problems during ASBA IPO applications:

• Read the IPO Prospectus carefully: The prospectus contains important information about the IPO, such as eligibility criteria, application process and allotment process.
• Submit your application early: This will give you more time to resolve any issues that arise.
• Keep a copy of your application: This will be helpful if you need to contact your bank for assistance.

By following these tips, you can avoid common problems during the ASBA IPO application and increase your chances of successfully applying for an IPO.

To Open a trading and demat account in Zerodha

Conclusion

In Conclusion, the ASBA IPO application process, developed by SEBI, offers a streamlined and secure approach to investing in Initial Public Offerings. Whether you opt for online methods through net banking or a broker, or choose the offline route, the steps are straightforward. Supported by a list of banks, ASBA brings benefits such as interest retention, paperless processing, and hassle-free transactions. Timings for application approval and solutions to common issues are crucial insights.

Embark on your IPO investment journey confidently with ASBA, making the process accessible and seamless. This guide equips you with essential knowledge, ensuring a successful application for your next investment opportunity. Happy investing!

For further assistance or inquiries, feel free to reach out. Best of luck on your ASBA IPO applications!

FAQs About ASBA IPO Application

How do I apply for ASBA IPO Application?

Application Process for IPO by ASBA

Navigate to the ‘Demat Services’ section or the ‘IPO Application’ section. Click on New IPO and select the IPO name from the list of open issues. Enter lot size, bid price and demat account details and submit your bid.

Where can I get the ASBA IPO Application form?

Investors can download BSE and NSE IPO form from NSE or BSE website. Alternatively, the latest IPO form is available at IPO Central.

Which bank is best for ASBA IPO Application facility?

ASBA facility is available in almost all major and recognized banks like HDFC, ICICI, Citibank, Axis, Bank of Baroda, IDBI, HSBC, SBI etc. There are also many other banks that offer ASBA services. Click on the link for quick reference of the list of banks having ASBA facility.

Is ASBA IPO Application compulsory?

Yes, ASBA is required for all IPO applications and investors in general.

How many IPOs can I apply for using ASBA IPO Application?

How many IPO applications can be made from one bank account using ASBA? According to SEBI, an investor can make a maximum of five applications from one bank account per issue using ASBA.