How Do I Withdraw from an IPO?

While the IPO subscription window is open, a retail investor who applied in the retail category can cancel or change the IPO application at any time. 

However, HNIs who invest as Non-Institutional Investors (NII) are not permitted to withdraw their IPO applications. Before the IPO subscription window closes, they can only modify their IPO application.

HNI Application Cancellation in an IPO

An application for an HNI IPO cannot be withdrawn. It can be changed, but only to raise the price. That is why most HNIs apply in the final hour before the issue closes. Retail persons, HUF, and NRI bids over 2 lakhs in the NII category are not liable for cancellation.

What to do?

2. Every IPO application is held by the broker or bank for a period of time before being submitted to the exchange IPO bidding mechanism. Brokers allow you to cancel bids that have not yet been posted to the exchange. However, it’s uncommon and only lasts for a short time.
3. An investor can cause the HNI bid application to be rejected for the allotment procedure by submitting a retail bid in the same person’s name. If a duplicate application is discovered, both applications are rejected.

IPO Cancellation Process

The process of canceling an IPO application is determined by the route taken. Investors typically apply for IPOs in two ways:

1. IPO ASBA Application
2. IPO UPI Application

Steps to cancel ASBA IPO Application

1. Firstly, visit the net banking mobile app or website through which you applied for the IPO.
2. Proceed to the IPO section and access the Order Book.
3. Select the transaction ID of the completed IPO application.
4. Once accessible, click the ‘Withdraw Application/Cancel Bid/Delete Bid’ option.
5. Submit the transaction.

Steps to cancel UPI IPO Application

1. Firstly, visit the net banking mobile app or website through which you applied for the IPO.
2. Proceed to the IPO section.
3. Click on the IPO bid that you want to cancel.
4. Once accessible, click the ‘Withdraw Application/Cancel Bid/Delete Bid’ option.
5. Submit the transaction.
6. Reject/Cancel the UPI mandate. 

Important: 

After the mandate expires, some banks release or unblock the funds. As a result, check with your bank/broker to see if manual revocation is required to release funds post-cancellation.

Between 10 a.m. and 5 p.m., the broker files the cancellation request to the Exchange. As soon as the broker receives confirmation from the Exchange, it updates the status of the cancellation request. When the application is canceled, you will receive an email message.

IPO Cancellation Limitations

• Only retail investors have the option to withdraw their IPO bids.
• At any moment, QIBs and NIIs cannot withdraw, cancel, or reduce the size of their Bids.
• The cancel/modify option is not accessible online till the broker uploads the IPO application to the exchange and receives confirmation.
• Although the IPO bidding period on the exchange runs from 10 a.m. to 5 p.m., banks do not allow IPO cancellations on the last day after 2 p.m. or 3 p.m.

Conclusion

The moment the IPO closes for subscription, the withdrawal of an IPO application cannot be done. Certain banks or brokers limit the time to cancel or alter IPO bids on the issue closing day at 2 PM. Would you believe it if we have an app that lets you modify/cancel your IPO application? The Shoonya App with zero brokerage lets you modify/cancel your IPO order/application before placing the final order. Download it today!