If any IPO contains an Employee quota then they give some relaxation for their employees. Might be they provide some discount to their employes or they have higher chances of getting an allotment.
In this article, we are going to learn how to apply for IPO under the employee quota online. mainly IPO divided into the following categories.
- QIB- Qualified Institutional Bidders
- NII – Non-institutional bidders
- RII – Retail Individual Investor
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How to Apply for IPO Under Employee Quota Online
To apply for IPO Under the Employee quota is as easy as applying for other categories. The only method to apply for IPO Under the Employee quota is Application Supported by Blocked Amount (ASBA).
You can not apply with a normal UPI mandate.
Application-Supported by Blocked-Amount (ASBA) is a simple and easy methodology to apply for IPOs. If you make investments by ASBA, the funds are blocked in your account for the IPO.
If you get an allotment of a particular IPO then blocked fund automatically debit from your bank account. The blocked fund is automatically released in your bank account if you don’t get an IPO allotment.
Most of the Nationalised banks like SBI, HDFC Bank, ICICI Bank, and more. Here is a complete list of ADBA supported banks.
If you want to apply with ASBA then you have to go with any nationalized bank net banking. In this post, we will take the example of SBI Online net banking.
Step 1: Log in to your internet banking.
Step 2: Go to e-Services. Then click on Demat Service and ASBA.
Step 3: Then click on IPO service.
Step 4: Accept certain conditions.
Step 5: Then jump to the Category selection page and select the category as an employee.
Step 6: Fill in the required information. Select cutoff price.
Finally, click on apply. And you successfully Apply for IPO Under Employee Quota Online. This process may vary from bank to bank. But the logic of subscription may remain the same.
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