Answer
The money blocked in your bank account is typically released (unblocked) within 1 to 6 working days after the IPO’s closing date.
Generally, this release happens quickly, often around T+2 or T+3 days (where ‘T’ is the date the IPO closed).
Key Points on Fund Release:
- Allotment Result: Your funds are unblocked once the share allotment process is finalised. This usually takes 2 to 4 working days after the IPO closes.
- UPI Application: Your bank usually cancels the mandate, and the money comes back in about 3 to 5 business days. You will get an SMS from your bank about this.
- ASBA (Bank Block) Application: The funds are usually released within 24 hours of the allotment finalisation in the ASBA bank block. In rare cases, it might take up to 6 working days.
Since your money was only ‘blocked’ and not taken out, you keep earning interest on it in your savings account until the allotment results are out.
What to do in case the funds are still blocked after the date the shares are listed on the stock exchange? Please contact your bank/registrar or the UPI application for help.