Glossary
ASBA: meaning, example and why it matters
Application Supported by Blocked Amount. When you apply for an IPO, the money stays in your own bank account but is blocked until shares are allotted; only then is the amount for allotted shares debited.
Worked example
You apply for 100 shares in an IPO at the top of the price band, ₹150, so ₹15,000 is blocked in your bank account. If 40 shares are allotted at a final price of ₹140, ₹5,600 is debited and the rest of the block is released.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
Your money stays in your own account until allotment instead of being paid to the company up front, so applicants who receive nothing simply see the block lifted.
Related terms
See it in practice
Frequently asked questions
Is money deducted when I apply for an IPO through ASBA?
No. The amount is blocked, not debited. Only the amount for shares actually allotted is debited, and the rest of the block is released.
Is this page investment advice?
No. ASBA is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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