How to apply for IPO using IDBI Bank ASBA Net banking

How to apply for IPO through IDBI netbanking platform

There are mainly two methods we use to apply for IPO now. First one is ASBA. ASBA is a process developed by India's Stock Market Regulator SEBI for applying to IPOs, Rights issue, FPS etc. ASBA means “Applications Supported by Blocked Amount”.

You can apply using your bank's net banking portal using ASBA to apply for IPO. In this video I have explained step by step process of applying for IPO using IDBI bank net banking portal. IDBI bank is one of the leading public sector bank in India. You can apply for IPO using their net banking portal.

We can find a dedicated page for IPO application in IDBI bank netbanking portal. We can use it for IPO application. We will get details about IPO there itself. Note down lot size and price range of IPO to fill the form. You also have to fill your demat account details while filling application. 

Check out this video to learn more about how to apply for IPO through IDBI Bank netbanking portal - https://youtu.be/ETtvw8koCO8?si=goH_XoiCv7bIJyt0

What is ASBA and How it works?

Application Supported by Blocked Amount (ASBA) is a process designed to improve retail investor participation in Initial Public Offerings (IPOs) by easing the application method and providing flexibility. Introduced by SEBI in 2008, it allows investors to apply for IPO shares by requesting brokers to block the application money in their bank accounts rather than having to pay upfront when applying.

During the IPO bidding window, investors can submit ASBA applications specifying bid details along with authorizing SCSB banks to block the fund. The amount remains blocked in the bank account till share allocation after which it is debited to the extent of allotted shares. Remaining funds get automatically unblocked. This enables investors to earn interest on application amounts for the period rather than money remaining idle. It also frees investors from payment withdrawal issues which earlier dissuaded many retail applicants.

ASBA facility is currently available with all brokerages through online or offline channels. Investors must ensure their bank account has sufficient funds before submitting applications. It is mandatory for applications of Rs 2 lakh or more. With ASBA easing the locking of capital via blocking of funds rather than outright debit, more investors are encouraged to confidently subscribe to IPOs without apprehension. This supports broader retail shareholding, deepens capital markets participation while boosting overall equity culture.

How to apply for an IPO through ASBA

Here is a step-by-step explanation of how to apply for an Initial Public Offering (IPO) through the ASBA (Application Supported by Blocked Amount) process in India:

1. Demat Account: Have an active demat account with any bank or broker. This is mandatory for making an IPO application through ASBA. Your allotted shares will be credited here.

2. Enable ASBA: For applying through ASBA, ensure you have filled the ASBA application form and enabled your bank account with the facility. Most banks now offer this.

3. Funds: Have adequate funds in your ASBA linked bank account to cover the amount you intend to invest in the IPO. Ensure clear balance without any lock-ins.

4. Details: Note the vital IPO details like price band, lot size, opening and closing dates etc. You will need these to make the ASBA application.

5. Application: Within the IPO dates, submit your bid using the ASBA facility via channels like broker terminal or bank's internet banking portal. Fill all required application details.

6. Blocking: Authorize your SCSB bank to block the application amount by providing verified credentials and signatures to confirm.

7. Allotment: The registrar will complete share allotment per the IPO subscription levels after it closes.

8. Unblocking: Funds blocked earlier will be debited only to the extent of shares allotted to you. The remainder amount gets automatically unblocked and credited back.

This convenient ASBA process eases small retail investors' IPO applications through blocking mechanism rather than upfront payment requirements.

As you know we can also apply for IPO using UPI now. We have made video of UPI method using Upstox IPO and Zerodha IPO. You can check that if you want to apply with that method.