How to Check Your IPO Refund Status Quickly

When a company decides to go public, it launches an Initial Public Offering (IPO) to raise funds by selling shares to investors. During this process, investors commit their money to buy shares, which often leads to temporarily blocking their funds. Once the IPO allotment is done, not everyone may receive the shares they applied for. This is where the IPO refund process begins, and almost everyone worries about their IPO refund status. 

This process determines how and when investors can get their blocked money back if they don’t receive an IPO allotment.

In this article, we will explain the IPO refund process and share the details of the estimated IPO money refund time!

Releasing Funds in an IPO

When you apply for an Initial Public Offering (IPO), the funds in your bank account are temporarily blocked. This means that a certain amount is set aside, or a lien is placed on your account. On the day shares are allotted, the required amount is debited, and the rest is released back to you.

The process of releasing funds in an IPO depends on whether or not you get the shares you applied for. If you don’t get any shares or only a few, the money that was blocked will be released so you can use it again.

When will funds be released if the IPO wasn’t allotted?

Funds are generally released after the IPO share allocation process is complete. If your application did not receive any allotment, your funds will usually be unblocked according to a predefined schedule. 

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Now, when we talk about IPO money refund time, according to regulations, companies must start processing within four working days after the IPO closes. If they don’t, they could face penalties and will have to return your money with interest.

The IPO money refund time typically takes 3 to 10 days after the IPO allotment process is completed. To check your IPO refund status, you can visit the official stock exchange website or your bank’s portal for updates. If your IPO amount is not unblocked, it’s important to contact your bank and the IPO registrar to resolve the issue as soon as possible.

In case when your IPO money is not refunded, or IPO not allotted but the amount is blocked, or, if IPO refund not received, you must check with your bank and the IPO registrar for the latest status.

Why Funds Might Be Returned

The company issuing the shares has to return your blocked funds in these situations:

1. If you don’t get any shares or only some, the registrar or bank must release the blocked amount, which relates to the IPO not allotted but amount blocked situation.
2. If the company doesn’t get at least 90% of the total amount it was aiming for, it must refund the money.
3. Sometimes, the company might not get the okay to list its shares on the stock exchange. If that happens, your money has to be returned.
4. If fewer than 1,000 investors get shares, the company has to refund everyone.
5. If the company fails to allot at least 75% of the shares to Qualified Institutional Buyer (QIBs), all the money needs to be returned to investors.

Timeline for Unblocking IPO Funds- IPO Refund Time

Here’s a quick look at when you can expect your funds to be released based on different situations:

Reason for Refund	Timeline
Non-Allotment	Within four days after the IPO closes.
No Listing Permission	Within four days of receiving a rejection notice from the stock exchange.
Minimum Subscription Not Met	Within four days after the IPO closes.
Fewer Than Minimum Allottees	Within four days after the IPO closes.
Less than 75% Allotment to QIBs	Within four days after the IPO closes.

Generally, IPO money refund time starts four business days after the IPO closes.

How the IPO Refund Process Works

The registrar is responsible for starting the refund process. They work with banks to unblock accounts and process the refunds.

Here are the steps for the IPO refund process:

1. The registrar, along with the stock exchange and lead manager, confirms how many shares are allotted.
2. If you don’t receive shares or only a partial amount, the registrar informs the banks to release your funds.
3. The bank then lifts the lien on the funds that were blocked during the application process, which addresses the issue of the IPO amount not unblocked.

How IPO Refunds Are Processed

The way your refund is processed can depend on how you applied for the IPO. 

Mode of Refund	How Funds Are Returned	Investor Category
ASBA	Amount is unblocked	Retail Individual Investors (RII), Non-Institutional Investors (NII), Qualified Institutional Buyers (QIB)
UPI	Mandate is revoked	Retail Individual Investors (RII)
Electronic	Refund is sent directly to the Anchor Investor’s bank account via methods like NEFT, or RTGS	Anchor Investor

What to Do If IPO Amount Not Unblocked

Sometimes, you might not see your money unblocked even after the IPO.

If this happens, here’s what you should do:

1. Check with Your Bank

If the IPO money not refunded situation arises, it’s essential to confirm with your bank.

2. Contact the Registrar

If everything is fine with your bank, you must reach out to the registrar. You can email them or visit their nearest branch.

3. Reach Out to SEBI

If you still haven’t found a solution, contact SEBI (Securities and Exchange Board of India).

• You can file a complaint on the SCORES website or send a physical application to SEBI.
• You can also call SEBI’s toll-free helpline at 1800 266 7575 or 1800 22 7575 for help.

If the refund isn’t processed on time, the issuer may need to pay you interest at a rate of 15% per year. If you experience any issues with your IPO refund not received, don’t hesitate to take action.

How to Check Your IPO Refund Status

The bank will send you a message or notification about the credited or released IPO refund amount.

The unblocking of your IPO money should follow the timelines mentioned in the IPO Offering Documents. If you don’t receive a notification from your bank, log into your bank account to check for the unblocked amount or any expected credits. If you still don’t see any updates, reach out to your bank to inquire about your IPO refund status.

You’ll get a refund if you have no allocation or only a partial allocation of shares.

Key Dates: Funds Unblocked if IPO Not Allotted

If your IPO application was not allotted any shares, the timing for unblocking your funds typically follows a specific schedule. 

• IPO Opening Date: This is when you can start submitting your IPO application.
• Close Date: The last day to submit your IPO application.
• Cut-off Time for UPI Mandate Confirmation: Certain banks might unblock the funds only after the UPI mandate end date.
• Basis of Allotment: After the IPO closes, the basis of allotment is determined.
• Initiation of Refunds: If your IPO application wasn’t allotted any shares, the initiation of refunds to your bank account begins.
• Credit of Shares to Demat: If you were allotted shares in the IPO, they would be credited to your demat account.
• Listing Date: The IPO shares become officially listed and available for trading.

So, if you didn’t receive any allotment in the IPO, your funds should start getting unblocked after the initiation of refunds or till the date of listing, depending on your bank’s policies.

FAQs| IPO Refund Status

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Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.