When does the money blocked for an IPO application get unblocked ?

The IPO blocked amount, also known as ASBA (Application Supported by Blocked Amount), is the money set aside in an investor’s bank account while applying for an IPO. This amount remains blocked and is debited only if application is successful and shares are allotted.

The exact timing of unblocking or debit may vary based on the bank and the IPO process, but generally the blocked amount is released or debited within 1–2 working days after the allotment is finalised.

IPO application money is not refunded, it is unblocked depends on the outcome of the IPO :

• For unsuccessful applications (no allotment): Blocked funds are usually unblocked within 1 working day after allotment finalisation 
• For partial allotment:  Only the amount for the allotted shares is debited from the bank account and excess amount is unblocked. Allotted shares credited to you Demat account. 
• For successful allotment: Entire blocked amount is unblocked and debited from the bank account. Allotted shares credited to you Demat account.