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ASBA e Form

ASBA e Form

ASBA also called the Application Supported by Blocked Amount method, is popular among investors who actively wait for new IPOs. ASBA process to apply for IPO or Invest in IPO is via both online and offline way. For the IPO application, you need to download the form. Making it more straightforward for you, here we are with the complete information on ASBA e Form.

Let’s get straight into it.

ASBA is one famous method used to subscribe for any new IPOs. SEBI initiated the process to offer retail investors a safe, secured, and systematic way to place their bids in these recent IPOs, which has been widely accepted ever since.

In all, for all those thinking is ASBA mandatory for IPO, then yes, it is one method to subscribe for the IPO in the primary market.

While we are talking about the process, to give a brief;

In this process, when an interested investor applies for an IPO, based on the lot they have used for, the total amount is calculated, which upon confirmation of order placement gets blocked in the investor’s bank account itself.

Now, most of the users or investors use the online trading platform to apply for IPO via ASBA. But there is another way as well where you can download the ASBA e-form for IPO application.

e-ASBA Application Form

ASBA method to apply for IPO is provided in the trading platform, or one can apply via net banking portal.

But there is another way of applying for an IPO via an offline method, where the investor can fill the form to apply for the IPO.

But before that, you need to register yourself on the NSE website. Then, if you are a new user, you can follow the given steps.

  • Visit the NSE IPO forms section and click on the new user registration.
  • Now, a window will pop up. Enter your basic details here. The details include,
  • Your name
  • PAN Card Number (This is also your Login ID)
  • Email and mobile number
  • DP Details
  • Bank Details.
  • After you have successfully filled in the details, click on save.
  • As mentioned above, your PAN card number will serve as your login ID. The first five letters of your name will be set as the default password for first-time login. You can change this later.

Note- The registration is a one-time thing. You can apply for multiple IPOs after completing this process.

The next step is to download the ASBA-e form. After that, you can follow the given ways to download the ASBA e-form.

  1. Blank Application Form Download- You can generate this form only with the issue-related details. A user can download 10 such forms at a time.
  2. Bis-cum Application Form Download requires your bank details, PAN card number, DP details, and bidding even before you download the form.
  3. Blank Revision Form Download- This is a blank form, and no details are required to download this.
  4. Bid cum Revision Form Download- You can enter the revised details of the bid, DP ID, bank details, and PAN card number before downloading.

How to Apply for IPO Through ASBA?

Once you download the ASBA e form you can apply for the IPO offline.

Fill in the details like:

  • Quantity,
  • Bidding details
  • Lot Size

Submit the form to your nearest bank or stockbroker branch along with the canceled cheque of the amount corresponding to your bid size.

You also need to submit a cancelled cheque of the desired amount along with your documents like your PAN card.

Once you have successfully completed this, the desired amount will be blocked in your account till the IPO allotment is announced.

If you are allotted the IPO, the amount will get debited from your account. If not, then the amount will be credited back in few days.

Note- ASBA e-form is available for download 2 days prior to the opening of IPO, so you can easily download it.

Conclusion

Although the process is simple, before actually applying for an IPO, either online or offline, it is crucial to understand that not every IPO brings profits.

Thus for every retail, investor it is necessary always to calculate risk and along with the capital available. Moreover, as any capital investment is subjected to market risks, one must be aware of his or her financial goals.

If you are looking to apply for IPO offline, then ASBA e-form is a successful procedure for you. However, you need to open a Demat account before you start your IPO journey, so open your Demat account today and get the listing gains.

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