IPO Withdrawal: How To Cancel Your IPO Application Quickly? 

Understanding IPO Application Withdrawal 

Applying for an Initial Public Offering (IPO) is an exciting step for many investors, as it gives you early access to a company’s shares before they list on the stock exchange. But what if you change your mind after applying? Whether it’s due to a shift in market sentiment, a review of the company’s fundamentals, or simply a personal decision, you may want to withdraw your IPO application.

If you have ever wondered how to cancel an IPO application after applying, you are not alone. Many retail investors face this situation, especially during periods of high IPO activity. To address such scenarios, the Securities and Exchange Board of India (SEBI) has laid down clear rules and timelines that govern IPO cancellations and withdrawals.

However, not all investor categories are treated the same under the rules. Also, once certain deadlines pass, cancellation or modification may not be possible. Understanding when and how you can cancel an IPO bid and what happens after cancellation is important so that you do not lose out or end up with blocked funds or other hassles.

Eligibility & Timeframe for IPO Withdrawal 

IPO application withdrawal (or cancellation of IPO application) refers to the act of revoking this bid before the shares are allotted. Here are the eligibility criteria and the applicable deadlines:

Timeframe / Deadline:

• You must cancel or withdraw your IPO bid before the IPO subscription period closes. Once the IPO issue closes, cancellation is no longer possible.
• Modifications or cancellations are only accepted during certain hours, typically between 10:00 AM and 5:00 PM on the days the IPO is open. On the last day especially, the window closes at 5:00 PM.
• After 5:00 PM on the IPO closing date, no more cancellation or modification, bids are locked in for allotment.

Step-by-Step Guide to Cancel IPO Application Online

If you are eligible and applied via an online method (broker app, trading platform, or via ASBA through net banking), here is how you can cancel your IPO application quickly.

There are two major options online:

1. ASBA (Application Supported by Blocked Amount) via net banking or bank portal
2. Non-ASBA / UPI / Broker App route

Below are detailed steps for both.

1. Cancelling via ASBA (Net Banking / Bank Portal) 

If you submit your IPO bid through the ASBA mechanism, your funds are not debited immediately but blocked in your bank account (through SCSBs - Scheduled Commercial Banks acting as Self Certified Syndicate Banks). To cancel via ASBA, do as follows:

• Log in to your net banking account using the bank you used to apply.
• Go to the section that handles IPO / ASBA applications. Banks may label it “Investments → ASBA → IPO Applications”, or “IPO / IPO Application Status / Order Book / ASBA Order Book”.
• Locate your IPO bid by looking at its name, date, and application or transaction ID.
• Select your application. There will usually be options to Modify or Cancel / Withdraw. Choose Cancel / Withdraw.
• Confirm the cancellation. The bank will then process the request.
• After cancellation is accepted, the blocked amount should be released back to your bank account. Typically banks release these funds within up to five working days after processing the cancellation.

2. Cancelling via Non-ASBA / Broker App / UPI Method 

If you applied via a broker’s trading app or used UPI, here is how you can cancel:

• Open the mobile app or trading platform you used to apply.
• Go to the IPO section, or “Orders / Active Bids / IPO Orders / IPO Order Book”.
• Find the IPO subscription / application you wish to cancel. You may see status “Pending / Under Subscription Period / Order Executed (pre-allotment)” etc.
• Select “Withdraw” or “Cancel IPO Application / Bid”.
• If UPI mandate was used, revoke or cancel the UPI mandate if required. Some apps automatically revoke it; sometimes you may need to do it via UPI app.
• Confirm the cancellation. The app should show a status change (e.g. “Cancelled” or “Withdrawn”).

Offline Process for IPO Withdrawal 

Although most modern IPOs and brokers support online cancellation, there may be some situations where you have to use offline methods. This might include:

• If you filled out a physical ASBA form at a bank branch.
• If broker-provided offline application.

Here is how to go about it:

1. Obtain the Blank ASBA Form
   If relevant, you will need a physical ASBA form (usually available at bank branches or at the registrar’s or exchange’s website).
2. Fill in Correct Details
   You will need your name, PAN, demat account number, bank account number, the number of shares you applied for, bid price and lot size, and the transaction/application reference number.
3. Submit Request for Cancellation in Writing
   You may have to write a cancellation request on the form or a letter to the bank or registrar. Include all identification details (PAN, Demat ID, Application Number).
4. Submit to Your Broker / Bank / Registrar
   If you used a broker, contact them; if a bank-branch submitted, contact that branch or the Syndicate Bank involved.
5. Follow Up to Confirm
   Get a written or email confirmation that your application has been cancelled. Confirm that your blocked funds will be released.

Because of manual work, offline processes may take longer. Also, not all IPOs allow offline cancellations in every category (depending on investor category rules).

Key Points to Remember While Cancelling an IPO Application 

• Check your IPO bid status / IPO bid status tracking: Before trying to cancel, verify whether your application is still in the subscription period and has not been allotted. If allotment has begun or the IPO has closed, cancellation might not be possible.
• Know your investor category: Whether you are retail, HNI/NII, QIB or employee/reserved quota matters. If you are a NII/HNI (i.e. bid amount more than ₹ 2,00,000), cancellation is usually not permitted.
• Time is of the essence: Cancellation must be done before IPO subscription window closes, and usually by 5:00 PM on last IPO subscription day. Some brokers or banks may have earlier cut-offs.
• No charges for cancellation: There are no fees levied by SEBI or most brokers/banks for cancelling IPO application before allotment.
• ASBA vs UPI mandate: If you used ASBA, funds are blocked; if you cancel the application, those funds get unblocked. If you used UPI, revoking the UPI mandate is important; otherwise sometimes funds may remain in blocked or pending state.
• Check refund / unblocking timelines: Even after cancellation, it may take some days for your bank or broker to release the blocked funds. Typically under ASBA banks release within 3-5 working days. 
• Keep transaction / confirmation details: After cancellation, obtain confirmation or screenshot. Record the application number, time of cancellation.
• Modification vs Cancellation: Sometimes you may only want to modify your bid (price, quantity) instead of cancelling entirely. Modifications are allowed under certain rules (especially for retail investors). Compare carefully what you need.
• Check your broker’s specific user interface and rules: Different brokers/banking portals may label options differently (“Withdraw”, “Cancel”, “Modify Bid”) and may have slightly different workflows.

What Happens After You Cancel Your IPO Application? 

1. No Allotment
   Because you cancelled, you will not be allotted any shares for that IPO. The registrar will consider your bid as withdrawn.
2. Release / Unblocking of Funds
   Depending on how you applied:
   • ASBA route: The money that was blocked in your bank account is released (unblocked) once cancellation is confirmed.
   • UPI / Broker route: If a mandate was set, UPI block/remove or expiry happens. Broker or UPI app may show funds returning to your available balance.
3. Status Change in Order Book / IPO Bid Status
   Your trading platform or bank’s portal should show the status of your IPO application as “Cancelled” or “Withdrawn”. This allows you to be sure that cancellation has been processed.
4. Refund Timing
   If any amount has been debited (which generally happens only after allotment), you may need to wait for the refund. But since in most cases funds are blocked (not debited), just unblocking is enough. The bank or broker may take a few business days (often up to 3-5 working days) to show the amount available.
5. You Can Reapply (If IPO is Still Open)
   If you cancelled before the IPO’s subscription period ended, and the IPO is still accepting applications, you may reapply (submit a fresh bid) provided you meet the eligibility (retail / HNI etc.).
6. Effect on UPI Mandate (if used)
   If UPI was used, after cancellation ensure the mandate is revoked otherwise the UPI app may still show a pending or blocked transaction or mandate.
7. No Penalty / Charges
   As per current editions of IPO rules, there is no penalty or cancellation charge for cancelling your application, provided you do it in the correct period.

Common Reasons Investors Cancel IPO Applications 

• Change in company fundamentals: New information may affect confidence.
• Valuation concerns: IPO pricing may appear too high compared to peers.
• Market volatility: Uncertain conditions reduce appetite for risk.
• Liquidity needs: Sudden expenses may require freeing funds.
• Mistakes in application: Errors in quantity, price, or details may lead to re-application.
• Better opportunities: Funds may be redirected to another IPO or investment.
• Subscription trends: Weak demand or low grey market premium could discourage participation.
• Regulatory/tax reasons: Advice or changes in law may influence the decision.

Conclusion 

Cancelling an IPO application is possible, but only under specific conditions. As someone investing in IPOs, you should be aware of your investor category, the method of application (ASBA or broker-app / UPI), and the strict timelines. If you follow the correct procedure and act before deadlines, cancelling your IPO application need not be stressful. Always check your IPO bid status, confirm cancellation via your platform, and ensure you understand which rules apply to you.

Also Read: 8 key factors to consider before buying an IPO | m.Stock