IPOSmart

• The bank where investor has account should be a Self Certified Syndicate Banks (SCSBs) and Axis Bank is a SCSB.
• All categories of investors can apply through ASBA route.
• Investors applying below Rs. 2 lakhs are allowed upward and downward revision of bids or withdraw the application before the issue gets closed through the Bank.
• Investors applying above Rs. 2 lakhs are only allowed upward revision of bids before the issue gets closed through the Bank. Withdrawal of bids above Rs. 2 lakhs is not allowed.
• The application amount (total bid amount) for IPO application will remain locked until allotment is done. An investor cannot withdraw the money in locking period.
• The investor should have a Demat account with any Depository Participant of either CDSL or NSDL.
• The individual investor should have PAN

• Banks, which are certified by SEBI, allows all investors to apply in IPO's using ASBA payment method, are known as Self Certified Syndicate Banks (SCSBs). SCSB's has capability to block the IPO Application amount until IPO allotments are done. SCSB guarantee the Issuer Company for the blocked money and make sure that it's not being used for any other purpose. Axis Bank is one of the SCSB registered with SEBI for providing this service to its customers
• All branches of the bank, at present, are activated for IPOSmart, however, this facility can be availed by any branch account holder, by visiting any of the branch of the bank. Or else an account holder can use Retail i-Connect (Axis Bank's retail net banking facility) to apply in IPOs through ASBA irrespective of the branch in which account is held.

Benefits

• The investor gets the convenience to invest in IPOs either through Internet banking or branches
• The application money stays in the account of the investor till allotment and hence he/she continues to earn interest in his/her account, if applicable
• In case the investor does not get full allotment of the shares applied for, the lien or the block will be removed for the remaining amount, which the investor cans use instantaneously.

As per SEBI, all categories of investors are allowed to apply in IPOs, Rights Issue and NCD IPO under ASBA.

No further physical documentation is required to avail this facility.

• You have to visit the nearest Axis Bank branch for applying for in the IPO through IPOSmart. It is not essential that you hold an account with that branch, but should hold an account with the bank.
• Fill in details like up to three bids, account number, PAN, Demat account details etc. in the specially designed ASBA application form of the IPO you wish to apply in and submit it at the branch.
• You will receive the acknowledgement copy from the branch.
• Subsequently, bank will block the amount on your highest bid in your specified bank account for the IPO as applied and send the application information to the designated stock exchanges for that IPO. In case of insufficient amount in your bank account, the bank will reject the IPO application and will not send the bidding to stock exchanges.
• The registrar to the issue will receive the data uploaded by your bank in the electronic bidding system of the stock exchanges and will only check the correctness of DP-ID, Client ID /Beneficiary Number and PAN for weeding out multiple applications based on PAN. The Registrar will then complete the basis of allotment and the same will be approved by the designated Stock Exchange
• On receiving the approval, the Registrar will send to the Bank, information containing investor-wise details on allotment and non-allotment and the money that has to be debited to your account. Based on this file the bank will debit your bank account for the allotment money and will release the block on the remaining amount in the account
• Subsequent to this, the issuer will make the allotment and shares will be credited to your Demat account

Steps

• Login to your Axis bank internet banking account. The account can be held with any Axis Bank branch across the country.
• Click on the link named Online IPO.
• The first step is to go through a one-time registration so that you do not need to fill up you Demat and PAN details for every application through IPOSmart.
• Click on the Registration Link and submit the same post filling the accurate details.
• Once the registration is complete go to the Payment option.
• Select one of the IPOs you want to apply for and mention up to maximum 3 bids. The total bid amount will be calculated and lien will be marked on the total of highest bid.
• You would then be required to provide OTP received on registered mobile number and accept the Terms & Conditions before submitting the bid.
• The bid will be accepted and a unique transaction number shall be provided for any further status enquiry on the application.

• SCSB shall not accept any ASBA after the closing time of acceptance of bids on the last day of the bidding period.
• SCSB shall give ASBA investors an acknowledgment for the receipt of ASBAs.
• SCSB shall not upload any ASBA in the electronic bidding system of the stock exchange (s) unless it has received the ASBA in a physical or electronic form; and it has blocked the application money in the bank account specified in the ASBA or has systems to ensure that Electronic ASBAs are accepted in the system only after blocking of application money in the relevant bank account opened with it.
• SCSB shall ensure that the details of a particular ASBA are uploaded only once in the electronic bidding system of any one of the Stock Exchange(s). SCSB shall be solely responsible for the completion and accuracy of all details entered/ uploaded on the electronic bidding system of the Stock Exchange(s).

As of now this value added service is provided free of cost

Bidding time will be uniform for ASBA and Syndicate ASBA applications. However, the applications have to be submitted with the branch during the banking hours and before 1 pm on issue closure date.

Bank will need the money in investor's account at the time of placing the bid for IPO shares through IPOSmart payment option. SEBI has clearly instructed that banks will not accept IPO application before blocking the bidding amount (for ASBA process). The amount will remain locked until registrar / stock exchange request bank to release the fund either because the investor didn't receive the allotment, IPO application got rejected or investor withdraw the IPO application. However, in case of upward bid revision additional lien will be marked on the differential amount. Besides, in case of bid withdrawal, lien will not be released from the account.

Yes, retail individual investors can apply at lower price band.

Yes, you can place a withdrawal request anytime during the bidding period. Any request for bid withdrawal should be made during the banking hours and on or before 1 pm of the issue closure date and will be subject to acceptance of Stock Exchange after which the application amount in your account will be unblocked. Once withdraw, the blocked amount will be available in 1 working day. Revision of bid request is also permitted under IPOSmart. In case of upward bid revision lien will be marked on the differential bid amount, however, in case of downward bid revision or bid withdrawal, lien on the previous highest amount will not be released.
Investors applying below Rs. 2 lakhs are allowed upward and downward revision of bids or withdraw the application and Investors applying above Rs. 2 lakhs are only allowed upward revision of bids before the issue gets closed through the Bank. Withdrawal of bids above Rs. 2 lakhs is not allowed.

Yes, interest will be payable on blocked amount as per RBI guidelines.

No. The blocked amount cannot be withdrawn. However, the same will be lying in your operative bank account till the allotment and earn interest as per account terms applicable

There is no differentiation in allotment of shares applied through ASBA and Syndicate ASBA route.

An investor, who has received the common application form from the registrar of the company floating the rights issue, has the option of applying through ASBA at any of the branch of the bank. Rights issue is now available in Net Banking facility. The process is similar to that of IPO, where the applications are bid with stock exchange by the SCSB.

A single Application can be made by an investor in an IPO Issue. However, in case there are any additional Reservation Categories provided by issuer of the IPO, investors eligible in that particular category may apply in that category as well.

Eg:- In an IPO where there is Employee/Share Holder/Policy Holder Reservation,

An investor can apply additionally in the reservation category (as the case may be) apart from the category to which the investor belongs.

Only one application can be made from a bank account in a Public Issue. (However, in case the investor is eligible in any additional reservation category, the investor may apply in that category as well). Further, the investor cannot apply on behalf of any Third-Party from own bank account.