IPOs

What is ASBA and UPI mandate?

Also called: ASBA, UPI mandate

Hinglish mein padhein: ASBA aur UPI mandate kya hai?

With ASBA, the IPO amount is only blocked in your bank account, not debited, until allotment. Retail investors approve the block through a UPI mandate.

If you are allotted shares, only that amount is debited; the rest is released. UPI can be used for IPO bids up to ₹5 lakh.

Remember to approve the UPI mandate before the cut-off time on the last day, or your bid won't count.

Related terms

IPO allotmentAllotment decides who gets shares in an IPO. When retail demand exceeds supply, lots are allotted by computerised lottery.
IPO (Initial public offering)An IPO is when a private company sells shares to the public for the first time and lists them on a stock exchange.