In this post I will provide you with a step by step guide on how you can apply to an Equity IPO using the State Bank Of India Net Banking Service.
The process is fairly simple, however, before you begin you need to ensure that you have:
1. Activated Net Banking on your SBI Savings Account.
2. A valid PAN Card.
3. A Demat Account.
Step 1: Log in to your Net-banking account at the following URL: https://www.onlinesbi.com/
Step 2: Next click on the 'e-Services' option at the top navigation bar.
Step 3: On the page that opens, you would find a 'Demat & ASBA Services' option at the left menu bar. Click on that.
Step 4: Next, select the 'IPO (Equity)' link under 'ASBA Services (IPO)'.
Step 5: Next you would be required to accept the terms and conditions of the online IPO application form. Once you have done so, you will see a listing of the Initial Public Offers currently on issue. You need to select the one you wish to apply for and click on 'go'.
Step 6: In the application form that opens up, you have to input details like you Name, PAN, Demat particulars as well as your bid price and quantity and then click on the 'Submit' button.
Note that retail investors can bid at the cut-off price, provided the total bid value does not exceed Rs. 200,000.
Once submitted, you can also edit or cancel your application from the 'Edit IPO' tab
Please note that your IPO application using the SBI net Banking will be supported by amount blocked from your savings account (ASBA).
What is “ASBA”?
ASBA denoted an “Application Supported by Blocked Amount”. ASBA is an application containing an authorization to block, by creating a lien, the application money (for subscribing to an IPO) in the bank account of the investor. 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.
Thanks for your time. Happy investing.