You can cancel your IPO application online before the IPO subscription period closes. The process for canceling an IPO application will depend on the method (ASBA through net banking or UPI) that you have used to apply for the IPO.
But as per SEBI guidelines, only retail investors have the option to cancel their IPO applications. IPO applications from Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs) cannot be canceled or withdrawn.
SEBI gives them the option to modify the application only. That too is only for increasing the price.
In the article, you will find details for canceling an IPO application at various possible stages, cancellation charges and the refund process.
Note – You can cancel the IPO application online only before the end of the IPO closing.Â
After closing it is possible to cancel the IPO application physically, which I have explained in the last. First, let me share the IPO cancelation process and then I will share the remaining information.
How to Cancel IPO Application
#1. If You Have Applied Using UPI
- Log in to your trading account or mobile app used for the IPO application.
- Find the IPO section within the app or on the dashboard.
- Go to IPO order book.
- Select the IPO application that you need to cancel.
- Click on the ‘Modify Bid/Delete Bid/Delete Order/Withdraw Application’ button when available.
- Confirm the cancelation transaction.
#2. If You Have Applied Using ASBA
You need to follow these steps if you apply for an IPO through net banking.
- Log in to your bank mobile app or net banking used for the IPO application
- Go to the IPO section and find the list of IPO applications made (the Order Book).
- Click the ‘Withdraw Application/Cancel Bid/Delete Bid’ button.
- Confirm cancelation to proceed with the cancellation transaction.
Your bank (in the case of ASBA) or your broker (for UPI applications) submits the cancellation request to the stock exchange between 10 AM to 5 PM.
They will update you about the cancellation request status upon receiving confirmation from the stock exchange.
You will also receive an SMS notification or an email from the stock exchange informing you of the cancellation status after the application is successfully canceled.
You may like to read about reports on the upcoming IPOs in 2023.
IPO Cancellation Charges
You don’t have to pay any fees to cancel your IPO application.
Whether you have used ASBA or UPI, there are Rs. 0 fees charged by any bank or broker for the cancellation of an IPO application.
Other points to note –
The cancel/modify option is available after the stockbroker submits your IPO application (when you bid) to the exchange.
Each bank or broker may have a specific IPO cancellation window. For example, the IPO cancellation time on the stock exchange is from 10 AM to 5 PM, but some banks and brokers typically do not permit IPO cancellations beyond 2 PM or 3 PM on the last IPO day.
You need to check this with your bank or broker regarding their IPO cancellation cut-off timings.
How to Cancel IPO Application in Zerodha
Step 1 – Log in to your Kite app or the Kite trading account that you use to apply for IPO in Zerodha.
Step 2- Go to the order book and find the IPO section and select the three dots on the IPO you want to cancel.
Step 3- Click on the cancel option and confirm the cancellation by pressing the blue OK tab.
After the IPO is canceled, the blocked UPI mandate will be released and the funds will be available in your account.
But the time it takes for the IPO mandate to be unblocked can vary depending on the bank.
How to Cancel IPO Application Before Allotment
IPO applications can be canceled even after the issue has closed.
You can withdraw your applications at any time before the company finalizes the basis of share allotment.
To withdraw an IPO application, you need to write a letter to the Registrar of the issue. In the letter mention the following
- Company’s name for whose IPO you have applied
- Complete application number
- Names as mentioned in the application in the same sequence
- Signatures of all the applicants
You need to ensure that your application reaches the registrar before the basis of allotment is finalized. If the company or registrar has already submitted the basis of allotment to the Stock Exchange, then the withdrawal request will not be considered.
As soon as the registrar receives your withdrawal request he will verify it and then cancel your application. After that, the registrar will instruct the Self-Certified Syndicate Banks (SCSB) to unblock the application money in your bank account after the basis of allotment has been finalized.
Refund After IPO Cancellation
The timelines for refunding IPO money after the cancellation of the IPO application vary from one bank to another.
Some banks may unblock the application money within a day or two, others may take longer to process the refund.
If you have used UPI for your IPO application, it may be necessary to revoke or reject the UPI mandate to release the funds. Failure to do so could result in the funds remaining blocked until the UPI mandate’s expiry date which is around 14 days from IPO close. It is advisable to check with your bank regarding the specific process for releasing the funds in such cases.
Note: Some banks may release or unblock the funds after the UPI mandate’s expiration which is around 14 days from the IPO close date.
If required, check with your bank or broker to manually revoke or reject the UPI mandate to ensure funds are released after the cancellation.
FAQs
Yes, in a book-built issue, applicants can withdraw their IPO applications even after the issue has closed, but it must be done before the basis of allotment is finalized.
The process for canceling an IPO application online varies depending on the platform you used for the application. You may need to log in to your account on the respective platform, navigate to the IPO section, and follow the cancellation instructions provided.
Yes, the IPO application can be canceled before the basis of allotment is finalized. Once the basis of allotment is submitted to the Stock Exchange, cancellation requests will not be considered.
Yes, you can cancel your IPO application if you applied through the UPI method. You may need to contact the Registrars and follow their specific cancellation process.
If the basis of allotment has been finalized and submitted to the Stock Exchange, cancellation requests will not be considered, and you won’t be able to withdraw your IPO application.
Yes, you may need to inform your bank or broker about your cancellation request. They will process the cancellation on your behalf.
You can cancel a part of your IPO application or the entire amount, depending on your preference.
Yes, you will receive a refund for the canceled IPO application. The refund timelines may vary from bank to bank, but it is typically processed within a few days.
Yes, you can cancel your IPO application multiple times before the issue closes. However, ensure that the final cancellation request is submitted before the basis of allotment is finalized.
If you encounter any issues during the cancellation process, you should immediately contact your bank, broker, or registrar to IPO for assistance. They will guide you on the appropriate steps to resolve the issue.
