What is IPO and ASBA?

As Initial Public Offering (IPO) is when an unlisted company offers its shares to the public for the first time. This helps the company raise capital to fund growth, repay debt, and enhance its market visibility. For investors, it presents an opportunity to buy shares at the offer price before the stock is listed, with the potential to benefit from price appreciation as the company grows.

Application Supported by Blocked Amount (ASBA) is a facility that allows investors to apply for IPOs by simply blocking the required amount in their bank account. The funds are not transferred at the time of application. Instead, they are debited only if the shares are allotted. This ensures that the investor continues to earn interest on the blocked amount throughout the IPO process.

Key Features of ASBA:

• Retail investors can apply for IPOs using Internet Banking, Mobile Banking, or UPI through broker apps.
• The application amount is blocked, not debited, in the investor’s account at the time of application.
• Jana Bank, as a Self-Certified Syndicate Bank (SCSB), places a hold on the required amount in the account.
• Investors continue to earn interest on the blocked funds until allotment.
• In case of partial or no allotment, the remaining or entire hold is automatically released after finalization.
• UPI-based ASBA applications are limited to a maximum of ₹5 lakhs. While, ASBA application submitted via Internet or Mobile Banking do not have such limit.

Eligibility Criteria for Applying to IPOs:

To apply for an IPO through Jana Small Finance Bank, the following criteria must be met:

1. Investor Category (as per NSE classification):

   Client Code	Investor Category	Cut-Off Allowed
   IND	Individuals (Retail), HUFs, Trusts, NRIs (≤ ₹2,00,000)	Yes
   IND	Individuals (HNIs), HUFs, Trusts, NRIs (> ₹2,00,000)	No
   FII	Foreign Institutional Investors	No
   MF	Mutual Funds	No
   IC	Insurance Companies	No
   FI	Banks and Financial Institutions	No
   OTH	Other QIBs	No
   CO	Bodies Corporate	No
   NOH	Non-Institutional Investors	No

2. You must have a Savings or Current Account with Jana Small Finance Bank.
3. You must maintain sufficient account balance for IPO bid amount.
4. You must have a valid PAN and a Demat Account with any Depository Participant (DP).
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5. You must comply with all applicable SEBI guidelines.

How to Apply for an IPO

You can apply for an IPO through Jana Small Finance Bank using either of the following methods:

Option 1: Internet Banking or Mobile Banking

• Log in to your Jana Internet Banking or Mobile Banking App.
• Navigate to the IPO section.
• Add your demat account if investing for the first time.
• Select the IPO you wish to apply for and enter bid details.
• Confirm the application. The amount will be blocked in your account and not debited unless shares are allotted.
• You’ll continue to earn interest on the blocked amount.
• Amount will be automatically unblocked or transferred to the Registrar and Transfer Agency (RTA), as per the instructions received from them.
• Investor making application using any UPI channel, shall use only his / her own bank account or only his / her own bank account linked UPI ID to make an application in public issues.
• Applications made using third party bank account or using third party linked bank account UPI ID are liable for rejection.

Apply via Internet Banking

View our guides: Internet Banking | Mobile Banking

Option 2: UPI via Broking Apps

• Log in to the broking app of your choice
• Add UPI ID linked to your Jana Bank account and make it your primary bank.
• Place your IPO bid and approve the UPI mandate through your UPI app.
• The funds will be blocked, and only debited if allotment is successful.
• Hold will be removed as per instructions received from National Payments Corporation of India (NPCI).

Note: UPI-based IPO applications have a limit of ₹5 lakh per application. Jana should be your primary bank in the broking app. If required, please change it by accessing: Profile>Bank Accounts in the broking app of your choice.

Want to learn more?

Visit our Knowledge Centre to explore detailed information to help you invest with confidence.

IPO Process: Key Timelines to Know

Here’s a step-by-step view of what happens after you apply for an IPO:

T Day = Business / Transaction Day

Timelines may vary based on intermediary processing.

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