Can You Cancel an IPO Application? Step-by-Step Process, Rules & Deadlines

Applying for an IPO does not always mean you have to continue with the application. If you change your mind during the bidding period, you can, in most cases, withdraw the bid before the issue closes.

That said, whether cancellation is actually allowed depends on your investor category and the type of IPO. Retail investors typically have a withdrawal window for Mainboard IPOs, but QIBs and NIIs don't get that option, once submitted, their bids stand. SME IPOs come with their own restrictions too, especially under the revised SME framework.

Understanding these rules is important because simply cancelling a UPI mandate or asking the bank to release blocked funds does not necessarily mean that the IPO bid itself has been cancelled.

This guide walks through when yu can cancel, how to do it through ASBA and UPI, and what happens to your blocked funds afterward.

Can You Cancel an IPO Application?

Yes, but the withdrawal facility depends on the investor category and the type of IPO. In a Mainboard IPO, Retail Individual Investors and eligible employees bidding in the Employee Reservation Portion can generally withdraw their bids until the Bid/Issue Closing Date.

QIBs and NIIs cannot withdraw or lower their bids once submitted.

SME IPOs follow different rules, and cancellation is not permitted for any investor category under the revised SME framework.

Important Deadline to Know Before Cancelling

For Mainboard IPOs, the closing-day cut-off can differ by investor category. Generally, bids from QIBs and NIIs are accepted until 4:00 PM, while bids from Retail Individual Investors are accepted until 5:00 PM, subject to the applicable issue and exchange rules. UPI mandate confirmation generally remains available until 5:00 PM on the Bid/Issue Closing Date.

Two points worth remembering:

• Don't wait for the last hour of the last day. Portals slow down under heavy traffic close to the deadline, and a request that doesn't go through in time simply won't be processed.
  
• The cut-off applies to cancellation as well as modification, on Mainboard issues. For SME IPOs, neither cancellation nor downward modification is available at any point during the bidding period.

How to Cancel an IPO Application via ASBA

The steps below apply to Mainboard IPOs. SME IPOs do not offer a cancellation option through any channel.

If you applied through ASBA, contact the bank or intermediary through which the IPO application was submitted. If your bank provides an online ASBA order book, you may also be able to withdraw the bid directly through that facility.

1. Log in to your bank's net banking account.
2. Go to the IPO or ASBA section of your net banking portal. The exact label varies by bank: common ones include "Investments," "e-Services," and "ASBA Order Book."
3. Open the order book or application status page and locate the specific IPO by name and application number.
4. If available, select the option to withdraw or cancel the bid and follow the instructions shown by your bank.
5. Confirm the request, which may involve an OTP sent to your registered mobile number.

Once confirmed, the bank releases the blocked amount back to your account automatically, you don't need to raise a separate refund request.

How to Cancel an IPO Application via UPI

For an IPO application made using UPI, the withdrawal or revocation request should be initiated through the intermediary through which the application was submitted. Depending on the platform, you may see a Cancel, Withdraw, Revoke or Modify option in the IPO section.

1. Open the broker app or trading platform you used to apply.
2. Navigate to the IPO section, usually labelled "Orders," "Active Bids," or "IPO Order Book."
3. Select the application and choose Cancel, Withdraw, or Modify Application.
4. Confirm the cancellation, which may require an OTP or another authentication method specified by your intermediary.
5. Separately check your UPI app (GPay, PhonePe, BHIM, or similar) to confirm the payment mandate linked to the bid has also been revoked.
   

Who Can Cancel an IPO Application?

The categories below and their cancellation rights, apply to Mainboard IPOs. SME IPOs use a different category structure with no cancellation rights for anyone.

This depends entirely on the investor category you bid under, as defined by SEBI:

• Retail Individual Investors (RIIs):  bids up to ₹2 lakh. Can revise or withdraw their bid during the Bid/Issue Period, up to the applicable closing-day deadline.
• Non-Institutional Investors (NIIs / HNIs):  bids above ₹2 lakh. Can only revise a bid upward (higher price or quantity). Cannot reduce the bid size or withdraw it.
• Qualified Institutional Buyers (QIBs): banks, mutual funds, insurers, and similar institutions. QIBs are permitted to revise a bid upward only; reducing the bid size or withdrawing it after submission is not allowed.

NII and QIB bids make up a large share of an issue's subscription numbers while bidding is open. The restriction is part of the applicable IPO bidding framework. QIB and NII investors cannot withdraw or lower their bids once submitted.

Reducing a Bid vs. Fully Withdrawing It

Not every investor who searches "cancel IPO application" actually wants to withdraw entirely, many of them want to reduce the number of lots or lower the bid price instead. It's worth knowing these are treated differently:

• Retail investors can do either: reduce the bid quantity/price, or withdraw the application completely, at any point until the issue closes.
• NIIs and QIBs may revise their bids where permitted, but they cannot reduce the bid quantity or bid amount or withdraw the bid.
  

If you're a retail investor who just wants a smaller allocation rather than none at all, look for a Modify or Revise Bid option in the same portal where you applied, cancelling the full application isn't necessary. Note that this flexibility does not extend to SME IPOs.

Rules for Cancelling: Mainboard IPO vs. SME IPO

The cancellation rules differ sharply between the two. On Mainboard IPOs, retail investors may withdraw a bid at any point until the issue closes, while NIIs and QIBs may not. On SME IPOs, this flexibility no longer exists for anyone: following SEBI's revised framework effective 1 July 2025, cancellation and downward modification are not permitted for any investor category, including the Individual Investor category (which replaced Retail Individual Investors for SME issues, and applies to an application of exactly 2 lots at a minimum value above ₹2 lakh). Once an SME bid is submitted, it stands, regardless of investor type.

This differs from the earlier SME IPO framework, under which the bidding and withdrawal rules were different. Investors should therefore rely on the rules applicable to the specific issue.

Common Reasons Investors Cancel IPO Applications

A change in overall market sentiment after applying.

• Fresh information from the RHP, financials, or news coverage that changes the investor's view of the company.
• An error in the original application: wrong lot size, incorrect UPI ID, or a bid price mismatch.
• Changes in the subscription levels during the bidding period.
• A simple change in personal financial priorities before the funds would actually be committed.

What Happens After You Cancel?

Once a cancellation request is confirmed, the bank or broker updates the application status to "Cancelled" or "Withdrawn." The amount blocked under ASBA or through the UPI mandate is released according to the applicable process.  This usually takes a few working days, and the exact timeline varies by bank rather than being fixed by SEBI or the exchange.

If the funds haven't yet reflected in your account after several working days, the next step is to check the application status in your portal first. If it still shows "Cancelled" with no pending mandate, the delay is usually just bank processing time rather than a failed request.

This process applies only where cancellation is possible, i.e., Mainboard IPOs. For SME IPOs, blocked funds or UPI mandates are released only if the application is not allotted shares, not through a cancellation request, since none exists.

Troubleshooting: What If You Can't Cancel IPO?

Sometimes an investor may not see a cancellation option even when they believe they should be able to withdraw the application. Here are some common reasons:

The IPO Has Already Closed
Once the issue closes, no investor, regardless of category, can submit a new cancellation request. This is not a technical fault, and there is no workaround.

You Are a QIB or NII
QIBs and NIIs cannot withdraw their bids in a Mainboard IPO.

It Is an SME IPO
Under SEBI's revised SME framework, effective 1 July 2025, there is no cancellation or downward modification facility for Individual Investors or any other category.

You Are Trying to Cancel Only the UPI Mandate
If you revoke an IPO mandate, the IPO bid and the corresponding block mandate are cancelled. If the revocation request does not go through, contact the intermediary through which the application was submitted and re-initiate the request.

Technical Problem
If the IPO is still open and you are eligible to withdraw but the option is not working, contact the broker, bank, or intermediary immediately. Keep your application number, PAN, and other application details on hand.

The Application Status Is Unclear

If you're unsure whether a cancellation went through, or whether your original bid was even recorded correctly, this can usually be confirmed independently rather than relying on the broker or bank alone. NSE's IPO Bid Verification module lets investors check their bid details, including price, quantity, and application status, by registering with their PAN. Data is typically available a day after the bid is placed and stays accessible for several days after the issue closes.

Conclusion

Cancelling an IPO application is a straightforward process for eligible investors in Mainboard issues, provided the withdrawal is made while the bidding window is open. The position differs for SME IPOs: under the revised SME framework, effective from July 2025, no investor category may cancel or downward-modify an SME application once submitted. Investors are therefore advised to confirm the applicable IPO type, their investor category, and the relevant cut-off time in advance, rather than assume the option to cancel will be available.

FAQ

Can I cancel my IPO application after the closing date?
No. Once the bidding window closes, the application is locked in as submitted, and cancellation is not possible for any investor category, on either Mainboard or SME issues.

Can I cancel an SME IPO application before it closes?
No. Since SEBI's revised SME framework took effect on 1 July 2025, cancellation and downward modification are not available for any investor category on SME IPOs, unlike Mainboard issues where retail investors retain a withdrawal facility.

Is there any charge for cancelling an IPO application?
There is generally no separate fee prescribed by SEBI for withdrawing an eligible IPO bid. However, investors should check the applicable terms and charges of their bank, broker or other intermediary.

Can QIB or NII investors cancel their IPO bids?
No. On Mainboard IPOs, SEBI rules permit QIBs and NIIs to revise their bids upward only, they cannot withdraw or reduce a bid once it's submitted. On SME IPOs, no category has cancellation rights at all.

What happens to my blocked funds after cancellation?
For Mainboard IPOs, the blocked amount (under ASBA) or through the UPI mandate is released back to your account automatically, typically within a few working days, though exact timelines vary by bank. For SME IPOs, since cancellation isn't available, funds are only released if the application does not receive an allotment.