You need to submit an application to apply in Initial public offering (IPO). Now a days, an IPO process is getting more mature day by day. In the past an IPO process was taking 2 months with lots of paperwork. Your application money was blocked for months even though you get the allotment or not. But now the process is much smoother. Now the maximum IPO application is applied online and your money will blocked in your bank account only. Money will deduct from your bank account when you get an allotment else lock of your application money will release on the same day.
In this article, we are going to discuss in detail -
You can apply in an IPO via Online or Offline mode (physical form).
To invest in IPOs, you need a bank account and a demat account. To sell the stocks in your holdings post IPO allotment process, you need a trading account.
The full form of the ASBA is "Application Supported by Blocked Amount" procedure. The ASBA provides an alternative mode of payment. The application money remains in the investor's account till finalization of basis of allotment on the issue.
Process flow to show how ASBA works:
Most of the national banks in India provide forms to apply in IPOs. Under ASBA (Application supported Block Amount) facility for applying IPOs, investors can apply in any public/rights issues by using his online bank account. The list of ASBA participating bank are provided in below section.
Lets see example how to apply IPO’s using ICICI online banking:
On this page you can see all open IPOs, select the IPO which you want to Invest.
Similar process is available under investment option in online banking site of all major banks like SBI Online, HDFC Bank, AXIS bank, etc.
Applying in an IPOs doesn't need a broker. You just need a demat account with any broker. Under ASBA (Application supported Block Amount) facility for applying IPOs, investors can apply in any public/rights issues by using their bank account.
The steps to apply in IPOs using your bank account are as follows:
Step by Step guide to invest in IPO by submitting physical application form: >> Guide
List of Self Certified Syndicate Banks (SCSBs) for Syndicate ASBA.
|Seq #||Bank Name|
|4||Bank of Baroda|
|5||Bank of India|
|6||Bank of Maharashtra|
|10||Central Bank of India|
|12||City Union Bank|
|22||Indian Overseas Bank|
|24||ING Vysya Bank|
|25||J P Morgan Chase Bank, N.A.|
|26||Janata Sahakari Bank|
|28||Karur Vysya Bank|
|29||Kotak Mahindra Bank|
|30||Nutan Nagrik Sahakari Bank|
|31||Oriental Bank of Commerce|
|33||Punjab National Bank|
|34||Rajkot Nagarik Sahakari Bank Ltdx|
|35||South Indian Bank|
|36||Standard Chartered Bank|
|37||State Bank of Bikaner and Jaipur|
|38||State Bank of Hyderabad|
|39||State Bank of India|
|40||State Bank of Mysore|
|41||State Bank of Patiala|
|42||State Bank of Travancore|
|44||Tamilnad Mercantile Bank|
|45||The Ahmedabad Mercantile Co-Op. Bank|
|46||The Federal Bank|
|47||The Kalupur Commercial Co-Operative Bank|
|48||The Lakshmi Vilas Bank|
|49||The Saraswat Co-operative Bank|
|50||The Surat Peoples Co-op Bank|
|52||Union Bank of India|
|53||United Bank of India|
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Currently only brokers who is providing 3-in-1 account are providing this service. As they are part of SCSB. The process to apply in IPOs online is simple and fast.
Steps to apply IPO online-
As you have a trading and demat account with the discount broker, you need to apply in IPO via ASBA. Log in to netbanking, under investment option, select invest in an IPO. Now you need to provide your demat account number. After allotment, your shares are going to deposit in your demat account. You can sell them from your discount broker trading account.
Applying in IPOs is completely FREE. You do not pay any fee, charges or taxes to apply for IPO shares.
However, you have to pay brokerage and taxes when you sell the shares allocated to you through IPO.
The IPO allotment status on broker’s website is updated only after the shares are transferred to your demat account (usually a day before IPO shares listing). The shares in your demat account will then be available to you to sell them on date of listing at the respective exchanges.
You can check the IPO Allotment Status directly on the broker’s website. Usually, the steps are as follows:
No, you can not apply in IPO via call and trade facility.
Stock Exchanges of India NSE And BSE provide separate platform for small and medium enterprises (SMEs) to go public by issuing IPOs to raise equity capital for their growth and expansion. These IPOs by SMEs are called SME IPOs.
Bombay Stock Exchange’s platform for SME IPO is called BSE SME Platform.
National Stock Exchange’s platform for SME IPO is called NSE EMERGE platform .
To Apply in SME IPOs you need to use ASBA facility.
Last updated on 30th Jun 2019