How to Cancel An IPO Application?

Applying for an IPO can be exciting, but situations and preferences can change. You may have entered the wrong details, reconsidered your investment strategy, or found a more promising upcoming IPO. In such cases, understanding how to cancel an IPO application becomes important.

Whether you submitted your bid using UPI through a broker or trading app or applied via ASBA (Application Supported by Blocked Amount) using net banking, there are clear steps you can follow to withdraw your application smoothly. But a common question investors ask is: Can we cancel IPO application after applying? Yes, you can cancel your IPO bid, but only before the issue closes.

This guide walks you through the process, rules, and timelines so you can cancel your IPO bid without stress.

Methods How to Cancel An IPO Application

Different platforms offer different cancellation options. Below are the most common ways to withdraw your IPO application:

1. Cancel IPO Application via Broker or Trading App

• Most investors today apply for IPOs using online trading or broker apps. The cancellation process is quick and available until the IPO bidding window closes.

Step 1: Log in to your trading or broker app.

Step 2: Go to the IPO section or Orders/Application Status tab.

Step 3: Find the IPO you previously applied for.

Step 4: Click on Withdraw, Cancel Bid, or Modify Application.

Step 5: Confirm the action. Some brokers may ask for OTP, TPIN, or UPI mandate cancellation.

Once approved, the application will be marked as “Cancelled” and funds will be unblocked within a few days.

2. Cancel IPO Application via ASBA (Net Banking Method):

If you applied through your bank using the ASBA facility, the cancellation must be done through your net banking portal.

Step 1: Log in to your internet banking account.

Step 2: Navigate to the IPO / ASBA / Investments section.

Step 3: Click on View or Manage IPO Applications.

Step 4: Select the specific IPO you want to cancel.

Step 5: Click on Withdraw, Delete, or Cancel Bid.

Step 6: Confirm the cancellation request.

Once cancelled, the blocked amount will be released automatically by the bank.

3. Cancel IPO Application via UPI (Unified Payments Interface):

UPI-based IPO applications are common when applying through broker apps. To cancel, you may need to withdraw the bid or cancel the UPI mandate:

Step 1: Open your UPI app (PhonePe, Google Pay, BHIM, Paytm, etc.).

Step 2: Go to UPI Mandates / Pending Requests.

Step 3: Find the IPO mandate request.

Step 4: Click Decline or Cancel. Confirm the action, and the mandate request will be cancelled accordingly.

IPO Cancellation Rules for Different Investor Categories

The ability to cancel or modify an IPO application depends on the investor category. SEBI has set specific rules that define who can withdraw, revise, or modify bids once submitted. Here's a breakdown:

1. Qualified Institutional Buyers (QIB):

QIBs do not have the option to cancel their IPO bids after submission. They are only allowed to revise their bid upwards, which means:

• They may increase the bid quantity or raise the bid price.
• They cannot withdraw or reduce the amount once the bid is placed.
• This restriction is meant to ensure stability and transparency in institutional bidding.

2. Non-Institutional Investors (NII / HNI):

Similar to QIBs, HNIs, and other non-institutional investors cannot cancel their IPO application once submitted. Their only flexibility is:

• They can modify the bid upward (price or quantity).
• They cannot decrease or withdraw the bid.
• This ensures large applications do not distort the demand once placed.

3. Retail Investors:

Retail investors enjoy the most flexibility in IPO cancellations. They can:

• Cancel their IPO application entirely.
• Modify the bid upward or downward.
• Reduce or increase the lot size or amount.

All these actions are allowed at any time before the IPO issue closes. Most broker apps and banks offer a direct cancellation option for retail users.

4. Employees & Shareholders (Reserved Quota Applicants):

Applicants under the employee or shareholder quota follow the same rules as retail investors, provided they stay within the investment cap (usually up to ₹2 lakh). They are allowed to:

• Cancel the application fully
• Revise or modify the bid (increase or decrease)
• Make changes anytime before the IPO bidding window closes
• These rules provide them with greater flexibility when participating in reserved categories.

Note: If an applicant in the Employee or Shareholder quota bids for an amount exceeding ₹2 lakh, that portion of their application is treated under the NII rules (cannot cancel, can only revise upwards).

How to Cancel An IPO Application on the Choice Finx App?

If you’ve applied for an IPO through the Choice Finx App and want to withdraw your bid, the process is simple as long as the IPO is still open for subscription. Follow the steps below:

Step 1: Open the FinX app on your mobile device and log in using your credentials.

Step 2: Navigate to the “IPO” tab from the home screen or the investment menu.

Step 3: Tap on “Application Status”, “My Bids”, or the relevant tab that shows ongoing IPO applications.

Step 4: From the list of applied IPOs, choose the one you wish to withdraw.

Step 5: Look for an option indicating “Cancel Application” or “Withdraw Bid.”

Step 6: You may be asked to verify OTP, UPI approval or App PIN/TPIN. Complete the confirmation step to submit your cancellation request.

Step 7: Once done, the application status will change to “Cancelled” or “Withdrawn”.

Reasons For Cancelling An IPO Application

Common reasons include:

• Change in Investment Strategy: Market conditions or personal financial goals may shift, prompting investors to redirect funds to other asset classes or opportunities.
  
• Overvaluation Concerns: If analyst reports, grey market trends, or company financials suggest that the IPO is overpriced, investors may choose to step back.
  
• Market Volatility: Sudden drops in the market, negative global cues, or sector-specific risks often lead to a change in sentiment, especially among retail and HNI investors.
  
• Better Upcoming IPO Opportunities: Investors sometimes cancel an existing bid to free up funds for a more promising upcoming IPO or high-demand listing.
  
• Incorrect Bid Details: Errors such as wrong lot size, incorrect price, wrong UPI ID, or duplicate application often lead to cancellations or bid modifications.
  
• Insufficient Funds or Payment Failure: If UPI mandates fail or the bank blocks more than expected, investors may opt to cancel and reapply later.
  
• Negative News or Company Updates: Any adverse updates about the issuer company, legal matters, or financial performance can trigger a withdrawal.
  
• Multiple Applications by Mistake: Retail investors applying through different platforms or family accounts sometimes cancel extra bids to avoid rejection.
  
• IPO Subscription Trends: Low subscription numbers in QIB, NII, or retail categories can reduce confidence and prompt bid withdrawal.

Points to Remember Before Cancelling an IPO Application

Before you withdraw your IPO bid, keep these important points in mind to avoid confusion or delays:

1. Cancellation is Only Allowed Before Issue Closure: You can cancel or modify your IPO application only until the IPO bidding window closes. Once the issue is closed, no withdrawal is possible.

2. Refunds Are Processed Automatically: After cancellation, the blocked amount is usually released within 2–5 working days. This timeline may vary depending on your bank, ASBA, or UPI mandate.

3. Allotment Means No Cancellation: If shares are allotted, you cannot cancel the application afterwards. Your only option is to sell the shares after listing.

4. Method of Application Affects the Process: Whether you applied through UPI, ASBA, or a broker app, the steps and timelines may differ slightly. Ensure you cancel using the same platform.

5. UPI Mandate May Need Manual Revocation: If the payment mandate is still pending, cancelling through the UPI app may be necessary to prevent processing.

6. Modifications Are Allowed for Retail Investors: Retail applicants can revise, cancel, or reapply before the issue closes. Institutional investors, however, have limited flexibility.

7. Check IPO Application Status After Cancelling: Always confirm that your bid shows as “Cancelled” or “Withdrawn” under IPO application status to avoid accidental allotment.

8. No Charges for Withdrawal: Most brokers and banks do not charge any fee for cancelling an IPO bid.

Conclusion

Cancelling an IPO bid is simple if done within the timeline. Whether you applied through a broker, ASBA, UPI, or a trading app like Choice Finx, the option to withdraw is available up until the IPO closing time. Always remember that once the IPO closes, cancellation is no longer possible. If allotment takes place, the only option left is to sell the shares after listing. Refunds are typically processed within a few working days, depending on your bank or payment method.

By understanding how to cancel an IPO application and the rules for your investor category, you can make informed decisions and manage your funds confidently.

FAQs

1. Can I Cancel My IPO Application After Allotment?

No. Once the shares are allotted, you cannot cancel your IPO application. Your only option is to sell the shares after listing on the exchange.

2. How Long Does it Take to Get A Refund?

The IPO refund time usually ranges from 2 to 5 working days after cancellation. Funds blocked via ASBA or UPI will be released automatically to your bank account.

3. Can I Cancel My IPO Application Before Allotment?

Yes. You can cancel your IPO application before allotment, provided the IPO is still open. Retail investors, employees, and shareholders have full flexibility, while institutional investors can only revise their bids upward.

4. What is The Time Frame For Cancelling An IPO Application?

The time frame to cancel an IPO application ends when the IPO subscription window closes. Any request after closure will not be processed.

5. What Happens After I Cancel My IPO Application?

Once cancelled:

• Your application status updates to “Cancelled”.
• Funds blocked under ASBA or UPI are unblocked in a few working days.
• You can reapply to the same or a different IPO if the subscription is still open.

6. Can I Modify My IPO Application Instead of Cancelling?

Yes. Retail investors, employees, and shareholders can modify their bid (increase or decrease quantity/price) before the IPO closes. Institutional and NII investors can only increase their bid.