ASBA (Application Supported by Blocked Amount) is the standard way to apply for shares in an IPO. Instead of paying upfront, your bank "blocks" the bid amount in your account; the money is debited only if and to the extent shares are allotted, and unblocked otherwise. ASBA is mandatory for IPO applications in India.
Why it matters to you
ASBA matters when your pre-IPO journey reaches the IPO itself. If you also want to bid in the public issue (separate from your unlisted holding), ASBA means your funds keep earning interest in your account until allotment, and you face no refund delays. It is the safe, regulator-mandated rails for the public-market leg.
Example: An investor blocked ₹2 lakh via UPI-ASBA for an IPO, was allotted shares worth ₹15,000, and had the balance unblocked automatically.