Many retail investors may change their minds after they submit the Initial Public Offerings (IPO) application in India. Thus, you might want to withdraw your bid due to changing market conditions or personal reasons. Well, it is possible to cancel your application even after you approve the Unified Payments Interface (UPI) mandate. This guide explains the correct method to withdraw your bid and release your blocked funds with the IPO mandate revoked.
The Process to Cancel IPO Application
First, you must understand how the system works when you apply for shares. Your money stays in your bank account when you approve a UPI mandate, and the bank only blocks that specific amount. However, the company does not receive your money at this stage.
Moreover, a cancellation request tells the system to remove this block and get the mandate revoked. Further, you can complete the cancellation process through your stockbroker. Therefore, you do not need to visit your bank or use separate banking portals. The stockbroker sends a deletion request directly to the stock exchange.
Next, the exchange processes this request and removes your bid from the system. Lastly, the system then informs your bank to cancel the payment hold.
Also Read: Different Rules for IPO Cancellation and Modification
Step-by-Step IPO Cancellation Guide (Getting IPO Mandate Revoked)
You must follow a specific sequence to withdraw your bid successfully. This section outlines the exact steps for retail investors.
- Open the mobile application or website of your stockbroker. Log in to your account with your security credentials.
- Locate the IPO section on the dashboard. Click on the option for active applications or order history.
- Find the name of the company that you want to withdraw. Click on that specific entry to view your application details.
- Look for the action buttons on the screen. Select the option that says delete or cancel bid.
- The platform will display a confirmation message. Click the confirm button to send your request to the stock exchange.
Important Rules and Timelines for IPO and Mandate Cancellation
You must know the official deadlines and terms for this process.
- You can only withdraw your bid while the bidding window remains open. The standard cut-off time is 5 PM Indian Standard Time on the final day of the public offer. The system disables the cancellation option after this deadline.
- The status of your UPI mandate might not change immediately after you cancel the application on the broker platform. Further, the mandate often shows as active in your payment application for some time. However, you do not need to panic in this situation. The stockbroker system updates the exchange first. Then, the sponsor bank processes this update and informs your bank. Lastly, the payment hold drops off automatically after this administrative process finishes.
- Some investors try to get the mandate revoked directly inside their payment application without cancelling the bid through the stockbroker. However, this action causes a payment failure. The system rejects your application because the bank cannot block the money. Well, this method is not ideal. You must always use the stockbroker platform to withdraw your application cleanly.
Release of Blocked Funds
Your main concern after a cancellation is the availability of your money. The release of funds depends on communication between different institutions.
| Application Scenario | Expected Fund Action | Timeline |
|---|
| Cancellation within bidding window | Bank removes the block after the exchange processing | 1-3 working days |
| No shares allotted after bidding closes | System releases funds during official refund stage | Follows standard T plus three timeline |
| Full share allotment | Bank debits the blocked money | On the official allotment day |
The bank restores your regular account balance limit once the hold is gone. You can then use your money for other transactions. You can contact the registrar of the public offering if your money remains blocked for too long. The registrar tracks all allocations and payment instructions.
Conclusion
You can cancel your application after you approve the payment mandate. You must submit the withdrawal request through your stockbroker before 5 PM on the final day. The exchange deletes your bid and the bank removes the payment hold within a few working days. This electronic system ensures that your money remains safe throughout the process.