IPO or the Initial Public Offering can be a much-hyped affair. With newspapers, brokers, Qualified Institutional Buyers(QIBs), retail investors, etc., tracking an IPOs every move, it can be hard to fathom why someone may like to withdraw their application. But there can be several reasons for an IPO withdrawal.
Published on 15 July 2022
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As per law, you can pull out your application even if your money has been deducted as long as you do it before the allotment has been finalised. Read on to know the steps for the same.
How to Withdraw an IPO Application?
You can withdraw the IPO application anytime between the bidding window between 10 am and 5 pm. Once you have successfully submitted your application, the delete or withdrawal option will automatically show on your bank’s net banking website or the broker’s online portal. However, some banks may not allow you to delete or modify your application post 2 or 3 pm on the last day of the bid. Therefore, it may be advised to verify the same with the bank.
You can withdraw an IPO application in two ways:
Through IPO ASBA Application
Through IPO UPI Application
How to Withdraw IPO Application Through IPO ASBA Application?
Here are the steps to follow:
Visit the net banking website or smartphone application where you applied for the IPO.
Go to the IPO section.
Click on Order Book.
Search for the transaction ID of the concerned IPO application.
Click on Withdraw Application. You may also find other options here, such as Cancel Bid or Delete Bid. You can click on any of these.
Click on Confirm to approve your action.
How to Withdraw IPO Application Through IPO UPI Application?
Here are the steps to follow:
Visit the net banking website or smartphone application where you applied for the IPO.
Go to the IPO section.
Search for the transaction ID of the concerned IPO application.
Depending on the portal, you may find one of these - Withdraw Application, Modify Bid, Delete Bid, or Delete Order. Click on either of these options.
Click on Confirm to approve your action.
Reject the UPI mandate.
Who Can Withdraw IPO Application?
The following types of investors only can withdraw from an IPO application:
Retail investors, including individual investors, Hindu United Families (HUFs), and Non-Resident Indians (NRIs)
Employees
Shareholders
These investors can also modify their bid as long as the IPO is open for subscription.
The following types of investors cannot withdraw their application:
Non-institutional bidders (NII), including high net worth investors, HUFs, and NRIs
QIBs
However, NIIs and QIBs can modify their bid. But they can only increase the number of equity shares or the bid amount. They cannot lower or cancel it completely.
Are There Any Cancellation Charges?
No, there are no cancellation charges charged by your broker or bank. You can withdraw your application completely free of any cost.
How Long Does it Take for the Refund?
The refund for your money and the cancellation of your application can differ for each bank. It can range from a day to a week or more. It may be best to confirm the same with your bank.
Conclusion
While there is always an option to withdraw or modify your bid, it can save time and effort to be sure of your application in the first place. In addition, it can help to research well in advance and be abreast with the IPO launch, the company’s performance, and its growth prospects to make a calculated move.
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Tips for Investing in IPO: IPO Investment Strategy
IPO or an Initial Public Offer is when a company sells its stocks to the public for the first time. These stocks can be bought by retail and individual investors and high net worth individuals. The cost of an IPO usually depends on the value of the company and its core business’s principles.
If you want to make high and quick returns on your investment, equities are your best bet. Mutual funds and shares are the two prudent instruments that allow you to invest in the equity market. However, do you know how these mutual funds and shares are made available for public investors?
According to section 2 of the Companies Act, 2013, the definition of a prospectus is “any document that is described or issued as a prospectus.” It is an advertisement, circular, notice, or document informing the public that the corporate body’s securities are up for sale.
No, the IPO withdrawal can only happen before allotment.
An IPO application can be withdrawn using two methods:
Through IPO ASBA Application
Through IPO UPI Application
QIBs and NIIs cannot withdraw their IPO application. However, they can increase their bid.
The withdrawal can only take place before the finalisation of the allotment.
The withdrawal can only be made before the IPO is closed.
The withdrawal can be processed between 10 am and 5 pm during the bidding window.
Yes, an IPO bid can be revised or modified. Retail investors investing in the below ₹2 lakh category can modify (increase and decrease) as well as withdraw their bids. NIIs and QIBs can also increase their bid.
Yes, some banks may have the cut-off time of 2 or 3 pm on the last bid day for withdrawals instead of 5 pm. Some banks may also take longer to refund your money. So, it may be helpful to confirm the same with the concerned bank beforehand.
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Tips for Investing in IPO: IPO Investment Strategy
IPO or an Initial Public Offer is when a company sells its stocks to the public for the first time. These stocks can be bought by retail and individual investors and high net worth individuals. The cost of an IPO usually depends on the value of the company and its core business’s principles.
If you want to make high and quick returns on your investment, equities are your best bet. Mutual funds and shares are the two prudent instruments that allow you to invest in the equity market. However, do you know how these mutual funds and shares are made available for public investors?
According to section 2 of the Companies Act, 2013, the definition of a prospectus is “any document that is described or issued as a prospectus.” It is an advertisement, circular, notice, or document informing the public that the corporate body’s securities are up for sale.
No, the IPO withdrawal can only happen before allotment.
An IPO application can be withdrawn using two methods:
Through IPO ASBA Application
Through IPO UPI Application
QIBs and NIIs cannot withdraw their IPO application. However, they can increase their bid.
The withdrawal can only take place before the finalisation of the allotment.
The withdrawal can only be made before the IPO is closed.
The withdrawal can be processed between 10 am and 5 pm during the bidding window.
Yes, an IPO bid can be revised or modified. Retail investors investing in the below ₹2 lakh category can modify (increase and decrease) as well as withdraw their bids. NIIs and QIBs can also increase their bid.
Yes, some banks may have the cut-off time of 2 or 3 pm on the last bid day for withdrawals instead of 5 pm. Some banks may also take longer to refund your money. So, it may be helpful to confirm the same with the concerned bank beforehand.
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