Product : Initial Public Offer (IPO)
Initial Public Offer is the process by which a company sells its shares to the public and thereby raises money for growth and expansion. It allows investors to buy the shares in primary market. Once the stock gets listed on the exchange, shares can be bought through secondary market. The growth of the company will surely lead to increase in the price of the shares bought by the investors. Investing in IPO has got easier and hassle free through ASBA.
ASBA means “Application Supported by Blocked Amount”. ASBA is an application containing an authorization to block the application money in the bank account, for subscribing to an issue. If an investor is applying through ASBA, his application money shall be debited from the bank account only if his/her application is selected for allotment after the basis of allotment is finalized, or the issue is withdrawn/failed.
No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorize your bank to make payment in case of allotment. No worries for refund as the money remains in investor’s account.