IPO Guide

IPO Application Modification

IPO Application Modification

The process of purchasing shares during an Initial Public Offering (IPO) requires investors to perform various actions, which include applying for shares, followed by modifying bids, and possibly application cancellations. Investors must adapt their strategies because demand patterns shift and investment strategies may evolve. Every aspect of IPO application modification, along with cancellation mechanics and corresponding rules, is detailed in this document.

IPO Application Modification

To boost their chances of getting assigned shares, investors can ask to modify their IPO application by changing both bid price and bid quantity. They will uninstall their application submission when IPO qualities no longer appeal to them.

Rules for IPO Application Modification Requests

  • Through the modification process, retail investors achieve the ability to alter either their bidding price or size on submissions.
  • The modification rules stipulate that QIBs and NIIs boost their bid amount through quantity enhancement or price rises yet prohibit them from reducing their submission.
  • Employees who are shareholders can alter their initial bids when the application amount remains under Rs. 2 lakhs.
  • Applications for modifying an IPO need to take place during the entire period of IPO subscription availability.
  • Any modifications to the IPO need to be prevented from the time when the subscription period finishes.

Steps to Modify an IPO Bid Online

  1. Users must access the broker platform followed by authentication under net banking.
  2. Navigate to the IPO section.
  3. Select the applied IPO.
  4. Click on Modify Bid.
  5. The user should adjust either the price or the number of shares included in the bid.
  6. Click on Confirm/Update.
  7. Accept the changed UPI authorization instructions if the process applies to your situation.

Steps to Modify an IPO Bid Offline

  1. The IPO modification/revision form can be retrieved from broker/bank platforms or accessed through NSE/BSE website pages.
  2. Enter the information which includes your name along with PAN followed by DP ID and the ASBA account number.
  3. Use the input screen to provide both the original bid information and its modified version.
  4. Sign the form.
  5. Deliver the form through the intermediary that received the initial application submission.

IPO Application Cancellation

Various factors such as market sentiment dynamics and investment reassessment serve as reasons that prompt investors to withdraw their IPO applications. The methods to cancel an application differ between traditional and electronic systems.

Steps to Cancel an IPO Application Online

  • Use the broker’s platform or net banking to access the account.
  • Navigate to the IPO section.
  • Select the IPO applied for.
  • Click on Cancel/Delete/Withdraw Bid.
  • Confirm the cancellation request.
  • You must revoke the UPI mandate only in cases of necessity.
  • The broker presents the cancellation request to the trading exchange between 10 AM and 5 PM until investors receive email confirmation regarding the application withdrawal.

Steps for Offline IPO Order Cancellation

  1. Draft a cancellation letter containing:
  • IPO Application Number
  • Applicant Name
  • PAN Number
  • Signature

Send the letter to the intermediary who received the IPO application.

IPO Application Cancellation Time

  • Users can cancel applications during the scheduled period of 10 AM on booking day through 5 PM on the subscription period end.
  • Brokers together with banks possess the authority to establish a prompter deadline which will apply at the conclusion of the initial offer period.
  • No cancellation fees are charged.

IPO Application Rejection Reasons

The IPO application rejection occurs when technical problems along with submission errors appear. Common reasons include:

  • Incorrect ASBA account number/UPI ID.
  • The application gets rejected because there is a mismatch between the details provided by the applicant and their bank account information and DP account information, PAN details, or bank details.
  • Trying to place a bid at a value that falls under the set minimum size.
  • The system does not permit more than one application with a matching PAN in a single class category.
  • Insufficient funds in the bank account.
  • Errors from intermediaries.

IPO Application Rejected but Amount Blocked

The blocked funds of investors will come back following the expiration of the IPO application audit. A few banking institutions return funds before allotment and other institutions pay funds after the allotment process is completed.

Important Financial Terms:

  • The digital payment address known as UPI Handle serves UPI transactions (for example @paytm or @ybl).
  • As a holding party of demat accounts with NSDL/CDSL investors get a single unique identification number called Deppository Participant ID.

Frequently Asked Questions (FAQs)

1. Can I cancel my IPO application after the IPO closes?

No, IPO cancellation is only possible while the IPO is open for subscription.

2. Will I be charged a fee for canceling an IPO application?

No, there are no cancellation charges.

3. Can I modify my IPO application multiple times?

Yes, as long as the IPO is open for subscription, you can modify your bid multiple times.

4. How long does it take to process an IPO cancellation request?

Cancellation is usually processed within the same day. However, some brokers may take additional time to reflect the change.

5. What happens if my IPO application is rejected?

If rejected, the blocked amount will be refunded after the mandate expires or as per the bank’s refund policy.

By understanding IPO modification and cancellation processes, investors can manage their applications efficiently and maximize their investment potential.

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