- Date : 18/09/2023
- Read: 3 mins
A guide to cancel ASBA/UPI based IPO applications and get the funds unblocked before the issue is allotted.
Initial Public Offering (IPO) allows investors to invest in the share before it goes public. It goes through several stages before it goes public, and investors must pull the plug at the right time to avoid complications. Let us guide you through the process of cancelling your IPO application.
Highlights:
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Only retail investors can pull out from their IPO application.
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Once the bidding window is closed, cancellation can be done by writing a letter to the issue registrar.
From an investor’s perspective, an IPO goes through two important stages: the bidding window and the allotment process. An investment application is submitted during the bidding window. These investors are classified into qualified institutional buyers (QIB), non-institutional investors (NII), and retail investors.
According to SEBI guidelines, only retail investors can pull out from their IPO application by following the process, depending on the investment medium.
There are two classifications of IPO applications:
1. Applications Supported by Blocked Amount (ASBA)
2. Applications made through UPI
In the ASBA application, funds stay in the account in a blocked manner, whereas in applications made through UPI, buyer grants mandate securing the funds.
Also Read: Types of IPO and how to apply
Steps to cancel applications made through a brokerage firm or bank in an offline mode
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Contact the firm immediately and let them guide you through the process.
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Provide all the relevant information along with the reason behind withdrawing the application.
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Fill in the cancellation form.
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Take the written confirmation from the intermediary firm and keep the records safe.
Cancelling applications made online through UPI
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Open the mobile application or website of the brokerage firm.
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Look for the IPO section and select the IPO application that you want to cancel.
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Click on the delete application/cancel application/withdraw application.
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Confirm the transaction.
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Revoke/Reject the UPI mandate to release funds.
Cancelling ASBA applications made through net banking/mobile banking app.
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Access the mobile banking app or net banking used while applying for the IPO.
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Look for the IPO section and open the order book.
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Click on the application’s transaction ID.
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Choose the option of cancel/withdraw/delete application.
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Confirm the transaction.
Also Read: IPOs that have disappointed in the last ten years
Once the bidding window is closed, cancellation can be done by writing a letter to the issue registrar. Write the company’s name and application number, along with names and signatures mentioned in the application. Ensure that the registrar receives the letter before finalising the basis of allotment. Otherwise, the withdrawal application will not be accepted.
Cancellation applications can be submitted between 5:00 pm to 10:00 am, after the daily bidding period. You will receive an email and SMS notification from the stock exchange once the application has been withdrawn successfully.
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