How to Invest in IPOs Online

IPO Application via UPI

UPI option is compulsory only for offline physical forms. After UPI confirmation, one need to accept the mandate on their UPI App (Via BHIM or Bank UPI Mandate).

Those who are applying IPO online can do it via trading portal or ASBA. No change for investors who are applying online.

UPI mode of payment is applicable only up to 2 Lakh of application amount, in case you are applying for more then Rs 2 Lakhs, you need to apply via ASBA.

You need to submit an application to apply in Initial public offering (IPO). Nowadays, 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 be blocked in your bank account only. The money will deduct from your bank account when you get an allotment else to lock of your application money will release on the same day.

In this article, we are going to discuss in detail -

• how to apply in IPOs online?
• Which institutions support IPO investment?
• What is ASBA Process?
• What are the charges to apply in IPOs?
• How to apply in IPO using UPI?

How to apply in an IPO?

You can apply in an IPO via Online or Offline mode (physical form).

1. With your netbanking service - ASBA Process.
2. By submitting physical form to your bank branch.
3. Brokers who are providing 3-in-1 service like ICICIDirect, Kotak Securities, Axis Direct, HDFC Securities, etc.
4. By submitting physical form to your broker (Less prefered service).

What type of account do I need to invest in IPO?

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.

What is the ASBA process and how its work in IPO investment?

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:



• An IPO investor can apply in IPO using 2 modes.
  • The first mode is electronic application submission via ASBA.
  • The second mode is physical form submission at self-certified syndicate banks (SCSB) branches.
• After submitting application, self-certified syndicate banks (SCSBs) will validate it with your PAN number. After validation, bank block the fund in investors account.
• Now this application will upload on the NSE / BSE system via SCSB.
• After this, the NSE / BSE consolidate all the requests and submit to the registrar.
• The registrar then completes the allotment process (T* + 9 Days) [T* = Issue close day] and instruct SCSBs about:
  • Success of allotment, transfer money to issuers account, and shares are credited to Investors DP account.
  • Rejected/Unsuccessful application – release money back to investor’s account.

How can I apply online in IPO with my bank account?

Most of the national banks in India provide forms to apply in IPOs. Under ASBA (Application supported by 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:

• Login to ICICIbank.com with your net banking user id and password.
• Then go to INVESTMENTS & INSURANCE > Invest Online



• Then go to tab > IPO Online

  On this page you can see all open IPOs, select the IPO which you want to Invest.



• You need to select your DP Type – CDSL or NSDL, provide your DP Account#, DP Name, Quantity, Price in Rs and Cut Off Price check box and then click on Submit button.



• Once you submit, this page direct you to transfer fund in IPO account with the total amount of investment.



• After performing fund processing, you can see status on Order Book. – E-IPO Order Book:



Similar process is available under investment option in online banking site of all major banks like SBI Online, HDFC Bank, AXIS bank, etc.

How can I apply in IPOs by submitting an application to bank branch office?

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:

• Go to the NSE / BSE website and check if your bank is part of the ASBA participating bankers to IPO. All major banks are part of this. The list of available ASBA participating bank branches are available on IPO detail webpage.
• If your bank is part of SCSB, then download the blank IPO Application form. The form is available on same IPO detail webpage.



• Fill the downloaded editable PDF with information like name of the applicant, PAN number, demat account number, bid quantity, bid price and other relevant details.





• Submit the application form at the designated branches of the bank in your town.
• Find a sample form for applying in IPO. >>Download

Step by Step guide to invest in IPO by submitting physical application form: >> Guide

Which banks provide ASBA facility in India?

List of Self Certified Syndicate Banks (SCSBs) for Syndicate ASBA.

Self Certified Syndicate Banks (SCSBs) for Syndicate ASBA

Seq #	Bank Name
1	Allahabad Bank
2	Andhra Bank
3	Axis Bank
4	Bank of Baroda
5	Bank of India
6	Bank of Maharashtra
7	Barclays Bank
8	BNP Paribas
9	Canara Bank
10	Central Bank of India
11	Citibank
12	City Union Bank
13	Corporation Bank
14	DBS Bank
15	Dena Bank
16	Deutsche Bank
17	HDFC Bank
18	HSBC
19	ICICI Bank
20	IDBI Bank
21	Indian Bank
22	Indian Overseas Bank
23	Indusind Bank
24	ING Vysya Bank
25	J P Morgan Chase Bank, N.A.
26	Janata Sahakari Bank
27	Karnataka Bank
28	Karur Vysya Bank
29	Kotak Mahindra Bank
30	Nutan Nagrik Sahakari Bank
31	Oriental Bank of Commerce
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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
43	Syndicate Bank
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
51	UCO Bank
52	Union Bank of India
53	United Bank of India
54	Vijaya Bank
55	Yes Bank