Apply for Midfield IPO through ASBA platform of exchanges

The IPO from Midfield Industries, opening tomorrow, will be the first public offer for which investors can use the stock exchange platforms for applying through the ASBA route, which is a supplementary process of applying for public issues.

Both the Bombay Stock Exchange as well as the National Stock Exchange have made available the application supported by blocked amount (ASBA) forms on their Websites for investors, following a recent Sebi directive in this regard.

Last week, markets regulator Sebi had made it mandatory for the bourses to make available the ASBA forms on their Websites.

Under the ASBA route, the application money remains blocked in the bank account of the applicant till the stocks are allotted. The amount get released immediately after the finalisation of allotment and helps the investor get the unused money quickly.

"It has been decided to make ASBA bid-cum-application forms available for download and printing from the Websites of the stock exchanges, which provide electronic interface for the ASBA facility," Sebi said in a July 13 circular.
    
It should be applicable to all public issues opening on or after July 19, 2010, Sebi had said, adding the forms should be made available at least a day before the offer opens.
    
The Hyderabad-based Midfield's Rs 59.85-crore initial public offer opens on July 19 and closes on July 21. The price band has been fixed at Rs 126-133.
    
In its endeavour to make the existing public issue process more efficient, Sebi had introduced a supplementary process of applying for public issues in July 2008.
    
The ASBA was first used in the public issue of 20Microns last September where around 10 per cent retail investors used this facility.