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IPO Application Cancellation Process, Charges, Rules - Explained

Published on Saturday, September 25, 2021 by Chittorgarh.com Team

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IPO Application Cancellation Process, Charges, Rules - Explained

A retail investor can cancel or modify the IPO application any time while the IPO subscription window is open. An IPO application cannot be withdrawn once the IPO closes for the subscription.

The stock exchange's IPO bidding window is open from 10 AM to 5 PM on working days. The IPO application cancellation request made when the exchange bidding window is closed (5 PM to 10 AM) are processed by the exchange at morning 10 AM the next day.

A retail investor can reapply in the IPO after successfully cancelling the request by the exchange.

Note:

  • The cancellation is allowed to an individual, HUFs and NRI investor applying in retail, shareholders or employee category for less than Rs 2 lakhs.
  • An individual/HUF/NRI applying in the Non-Institutional Investors (NII) category cannot cancel their IPO applications. They can only revise their IPO bid before the IPO subscription window closes.
  • Qualified Institutional Buyers (QIB) also cannot cancel the bids once placed.
  • Most banks do not permit to modify or cancel till 5 PM on the last dayof the issue. The limit the time to 2 or 3 PM.
  • It may take up to 24 hours after the cancellation request to get the funds unlocked.

IPO Cancellation Process

The IPO application cancellation process depends on the route used for an IPO application. Investors generally apply in IPO using two ways:

  1. IPO ASBA Application
  2. IPO UPI Application

Steps to cancel ASBA IPO Application

  1. Log in to the net banking website or mobile app from where you applied for the IPO.
  2. Go to the IPO section and open Order Book.
  3. Click on the transaction ID of executed IPO application.
  4. Click on the 'Withdraw Application/Cancel Bid/Delete Bid' button once available.
  5. Confirm the transaction.

Steps to cancel UPI IPO Application

  1. Login to the broker's IPO application or mobile app from where you applied in IPO.
  2. Go to the IPO section.
  3. Select the IPO bid that needs to be cancelled.
  4. Click on the 'Modify Bid/Delete Bid/Delete Order/Withdraw Application' button once available.
  5. Confirm the transaction.
  6. Revoke/Reject the UPI mandate. Note: Some banks release/unblock the funds after the mandate expiry. Hence, check with your bank/broker if manual revocation is required to release the funds after cancellation.

The broker submits the cancellation request to the Exchange between 10 AM to 5 PM. The broker updates the cancellation request status as soon it gets confirmation from the Exchange.

You will get a notification email once the application gets canceled.


IPO Cancellation charges

There are no charges levied by any bank or broker for the cancellation of an IPO application. You do not have to pay any fees to cancel an IPO bid either through ASBA or UPI.


IPO Cancellation Timings

The exchange IPO bidding window is open from 10 AM to 5 PM. You can cancel an IPO anytime online while the IPO is open for subscription. The Cancel/Withdraw option is visible only once the IPO application is successfully submitted. If you do not see the cancel option online, contact the bank or broker through whom you would have applied for the IPO.

However, note that not all banks allow to apply, modify, or cancel till 5 PM on the last day of the issue. Each bank has its cut-offs generally till 2 PM or 3 PM. Click here to know the details of Online ASBA IPO last day timings.

Some brokers like Zerodha also have a specific window to cancel an IPO bid. Zerodha allows IPO cancellation only from 12 PM to 4.30 PM while an IPO is open for subscription.


IPO Cancellation Limitations

  • Only retail investors are allowed to cancel the IPO bids.
  • QIBs and NIIs can neither withdraw, cancel nor lower the size of their Bids at any stage.
  • The Cancel/modify option is not available online until the broker submits the IPO application to exchange and get a confirmation.
  • Each broker may have a specific IPO cancellation window like Zerodha. Check with your broker for the same.
  • Though the IPO bidding time on exchange is from 10 AM to 5 PM, the IPO cancellation on the last day is not permitted beyond 2 PM or 3 PM by banks.

IPO Cancellation Refund

The refund timelines of IPO money on cancellation of IPO application differs from bank to bank. Some banks unblock the application money in a day or two, while some other banks may take more time.

If you have applied using UPI, you may need to revoke or reject the UPI mandate for the funds to get released failing which the funds would be blocked till the UPI mandate expiry date. Check with your bank for the process.


Modify IPO Bid

A retail investor can revise the IPO application at any time while the IPO is open for subscription. The stock exchanges IPO bidding platform permits revision of IPO application until 5 PM on issue closing day but, each bank has their time limits to accept the modification request on the last day.

The NII (HNI) and QIB investors can also modify their bids but cannot lower their Bids (in terms of quantity of Equity Shares or the Bid Amount) at any stage.

Retail Individual Bidders and Eligible Employees Bidding in the Employee Reservation Portion can revise their Bids during the Offer Period and withdraw their Bids until Offer Closing Date.


IPO cancellation Zerodha

Zerodha allows applying online in IPO using UPI. You can also cancel your IPO application in Zerodha through Zerodha Console while the IPO window. However, the cancellation is permitted only between 12 pm to 4.30 pm.

Steps to cancel IPO application in Zerodha:

You can either delete a bid or an entire IPO application as desired.

  1. Login to Zerodha Console.
  2. Click on the Portfolio tab.
  3. Select IPO from the dropdown.
  4. Click on Modify Bid for the desired applied IPO under the Ongoing IPO section.
  5. To delete a bid: Select the bid to be deleted. Click on Delete.
    To delete the entire application: Click on the Delete Order button on the right corner.

Zerodha Cancel or Modify IPO Application


Conclusion

A retail investor can cancel an IPO application easily applied using ASBA or UPI through their bank or broker. Check with your bank/broker for the specific process and timings for cancellation.

Frequently Asked Questions

  1. 1. How to cancel IPO application?

    An IPO application can be cancelled online by a retail investor while the IPO is open for subscription.

    You can cancel ASBA as well as UPI- supported IPO applications.

    Steps to Cancel IPO Application

    1. Visit the website or app from where you applied for IPO.
    2. Go to the IPO section.
    3. Select the applied IPO for cancellation.
    4. Click on the Withdraw/Delete/Cancel Application button once available.
    5. Revoke UPI mandate in case of UPI route.

    You will get a cancellation confirmation for the request initiated.

    Note:

    • Some banks or brokers may restrict IPO cancellation until 2 PM on the issue closing day.
    • Application in QIB and NII category cannot be withdrawn.

     

  2. 2. How to delete IPO bid in Zerodha?

    A Zerodha customer can delete the IPO bid in Zerodha at any time from 12 PM to 4:30 PM while the issue is open for subscription. Read Zerodha IPO review for more details.

    Steps to delete IPO bid in Zerodha

    1. Login to Zerodha Console (back-office)
    2. Go to Portfolio > IPOs
    3. Go to the 'History' section at bottom of the page.
    4. Choose your IPO application
    5. Cancel a bid or delete the entire application as desired.

    Zerodha Cancel or Modify IPO Application

     

  3. 3. Can I revise my IPO application?

    Yes, retail investors applying in the retail IPO category (< Rs 2 Lakh) can revise their Bids or withdraw their bids until the Offer Closing Date.

    You cannot withdraw, cancel or lower your bid if you belong to the NII or QIB category of investors.

     

  4. 4. How to delete IPO application?

    You could delete your IPO application at any time during the bidding period. The IPO application cannot be deleted after that.

    Note: If you do not see the delete option, wait until the broker submits your IPO application to the exchange between 10 AM to 5 PM on the day when the issue is open.

    Steps to delete IPO Application

    1. Login to the broker or bank website.
    2. Go to the IPO section.
    3. Visit IPO Order Book and find the order.
    4. Click on the IPO application ID.
    5. Click on the 'Withdraw/Cancel/Delete IPO Application' button.

    Note:

    • QIB and NII IPO Applications cannot be deleted.
    • The Delete button will appear only once the IPO application request is submitted by the broker to the Exchange.
    • Some banks may not allow you to delete the order after 2 PM or 3 PM on the last day of the issue.

     

  5. 5. How to cancel IPO application ASBA?

    You can cancel the ASBA IPO application through your Bank's Net banking website at any time till the closure of the Bidding Period. The IPO bidding closes at 5 PM on the issue closing day. Note that some banks may not allow you to cancel or modify the IPO bid after 2 PM or 3 PM on IPO closing day.

    The IPO application can be cancelled online by submitting a cancellation request. Requests made between 10 AM to 5 PM get canceled in real-time. The requests placed outside the bidding hours get sent to the Exchange by the broker by 10 AM when the Exchange starts accepting bids.

    Steps to Cancel ASBA IPO Application

    1. Login to the Net banking website or app of your bank.
    2. Go to the 'Online IPO' section
    3. Go to the 'Order Book' page
    4. Click on the 'Transaction ID' link for IPO you would like to Cancel.
    5. Click on the 'Withdraw' application button.
    6. Confirm your transaction.

    Note:

    • Broker or bank sends your cancellation request to the Exchange.
    • You get an email once the cancellation request gets accepted by the Exchange.
    • ASBA blocked funds for deleted IPO applications generally get unblocked with a day or two.
    • IPO applications cannot be canceled after the bidding period.
    • NII investors cannot withdraw the Bid. They can only modify it.

     

  6. 6. How to delete IPO mandate?

    You can delete the IPO mandate by canceling or withdrawing the IPO application. The UPI mandate for blocked funds generally gets removed after 24 hours of cancellation at the exchange's IPO bidding platform.

    You can cancel the IPO application until 5 PM on the Offer Closing Date. Some banks offer this facility until 2 PM/ 3 PM. Once you submit the withdrawal request with the broker or bank, the request gets sent to the exchange for cancellation during the IPO bidding window.

     

  7. 7. How to withdraw IPO application?

    A retail investor (RII category) can withdraw an IPO application anytime while the IPO is open for subscription. The IPO bidding closes at 5 PM on the issue closing date.

    Steps to withdraw IPO application

    1. Visit the website or app from where you applied for IPO shares.
    2. Go IPO Order Book in IPO section.
    3. Find the 'withdrawal' option in front of your IPO application.
    4. If this option is not available, wait until the next day at 10 AM when the broker submits the bid to exchange and get confirmation.
    5. Submit a request to withdraw the IPO application.
    6. Get a confirmation message about your request.

    Note that the above steps may slightly vary from broker to broker and bank to bank.

     

  8. 8. Can IPO application be withdrawn?

    Yes, a retail investor can withdraw an IPO application any time while the IPO is open for subscription. You cannot modify or cancel the IPO bids once the IPO gets closed. The investors in NII and QIB category cannot cancel or withdraw their IPO bids.

    To withdraw the IPO application, you can visit the broker/bank's website or app from where you applied in the IPO. Visit the IPO section and request for cancellation.

     

  9. 9. How to cancel IPO application in 5paisa?

    You can cancel your IPO application in 5paisa by submitting an online cancellation request through the IPO section of 5paisa.com. Note that you could modify/cancel IPO only when the IPO is still open for subscription.

    Steps to cancel IPO application in 5paisa

    1. Go to the 5paisa.com website or log in to 5paisa mobile app.
    2. Visit the IPO section.
    3. Click on Reports.
    4. Choose the IPO application you would like to cancel.
    5. Cancel or modify the bid.

     

  10. 10. Why NII bidders apply on the last day of IPO?

    NII bidders apply on the last day of IPO mainly on account of two reasons:

    • NII bidders generally use IPO Fundingto invest in IPO. Thus, applying on the last day of the issue helps them save on the interest cost.
    • Secondly, NII investors cannot withdraw or lower the size of their bid in terms of quantity of Equity Shares or the Bid Amount at any stage. Thus, they apply at the end when they have a fair idea of the IPO oversubscription figures.

     

  11. 11. How to cancel IPO application HDFC Bank?

    You can cancel the IPO application online through HDFC Bank Net banking anytime while the issue is open for subscription till 2 PM on the issue closure date.

    Steps to cancel IPO application HDFC Bank:

    1. Login to HDFC Net banking.
    2. Go to the IPO section.
    3. Choose the IPO application you would like to cancel/
    4. Place the cancellation request.

    The money in your bank account gets unblocked within a day or two on successful processing of the cancellation request.

     

  12. 12. How to cancel IPO in Upstox?

    You can cancel IPO in Upstox online anytime during the issue period through the Upstox website or mobile app

    Steps to cancel IPO in Upstox:

    1. Log in to the Upstox website or mobile app.
    2. Go to the IPO section of the Discover tab.
    3. Click on My IPOs >> View More
    4. Click on Delete application.
    5. Click on Delete to confirm the cancellation request.
    6. Reject the mandate.

    Click here to check the screenshots.

     

  13. 13. How to cancel IPO bid?

    An IPO bid can be cancelled online via the bank or broker through whom the IPO is applied.

    Steps to cancel IPO bid:

    • Login to the bank or bank website or app.
    • Look for the IPO section,
    • Select the IPO for cancellation.
    • Place the cancellation request.

    You can also approach the bank or broker and place a written request by quoting your IPO application number if you face any issues to cancel online.

    Points to Note:

    • Only retail investors can cancel the bid.
    • NII and QII cannot withdraw or cancel their bids.
    • The cancellation process may vary slightly from bank to bank and broker to broker. Check with your bank/broker for the timings.
    • The cancellation placement time on the last day may also be different for each bank and broker. Check with your bank/broker for the timings.

     

  14. 14. Can I cancel IPO application?

    Yes, you can cancel your IPO application through your bank or broker from where you had applied for an IPO if you are a retail investor.

    The investors in NII or QIB category cannot cancel their bids.

    The IPO cancellation request can be placed anytime from the issue open date till the issue closure date. However, the timings on the last day of the issue may vary for each bank (2 PM/3 PM)and a broker.

     

  15. 15. Can I cancel the IPO application and reapply?

    Yes, technically, you can cancel the IPO application and reapply. However, since the modification option is available, not sure if the cancellation and reapplication would get accepted. Moreover, the funds would get blocked twice as sometimes the banks take time to release/unblock the funds from the earlier cancellation.

    Thus, it is advisable to modify a bid rather than cancel and reapply.

     

  16. 16. Can I cancel IPO bid in Zerodha?

    Yes, a retail investor can cancel an IPO bid in Zerodha through Zerodha Console. You can place the IPO cancellation request in Zerodha between 12 PM to 4.30 PM while the issue is open for subscription.

    Steps to cancel IPO bid in Zerodha:

    1. Log in to Console.
    2. Go to the IPO section under the Portfolio tab.
    3. Click on Modify Bid for the desired applied IPO under the Ongoing IPO section.
    4. Click on Delete to delete a bid or Delete Order to delete the entire application.

     

  17. 17. Can I cancel IPO application after allotment?

    No, you cannot cancel an IPO application after allotment.

    A retail investor can cancel an IPO application only during the IPO bidding period. You can cancel anytime from the day when the issue opens at 10 AM till 2 PM/3 PM on the issue closure date.

     

  18. 18. Can I cancel the IPO application before allotment?

    Yes, a retail investor can cancel the IPO application before allotment by writing directly to the Registrar.

    The IPO application cancellation window through your broker or bank closes once the issue subscription window gets closed. However, if you wish to cancel your IPO bid post the issue closure date, you need to submit a written request to the Registrar via email along with your application details. The Registrar can consider the cancellation request provided the request is received before the finalization of the allotment.

     

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