How To Cancel An IPO Application
5paisa Research Team
Last Updated: 31 May, 2023 05:02 PM IST
Content
IPO stands for Initial Public Offering, where investors get a golden opportunity to invest in the shares of a company before it goes public. While investors decide after thorough research, sometimes there might be a change of circumstances where the investor intends to cancel an IPO application.
If you don’t know how to cancel IPO application, this article is for you! Hold your patience and read till the end to learn how to withdraw IPO applications and secure other relevant information regarding IPO cancellation charges. This article will also guide you through the steps to cancel an IPO application. But before anything else, it is essential to define what the withdrawal of an IPO application is meant.
What Is Withdraw IPO Application?
The meaning of an IPO application withdrawal is when an investor intends to cancel their initial request to purchase the company’s shares that are going public. On submitting an IPO application, the investor expresses an interest in buying the shares of a company on its initial public offering. However, there is also an option of withdrawing the application before the allotment of shares if they change their decision about purchasing shares.
If you are preoccupied with how can I cancel my IPO application, you just need to follow some simple steps. The process typically includes contacting the intermediary or the broker who previously handled the application and requesting for cancellation of the order. However, the correct cancellation or withdrawal procedure must be followed to avoid cancellation charges or complications in the future.
Steps To Withdraw Or Delete IPO Application:
How to delete IPO application is the most common query that people tend to have. Although the steps might vary slightly depending on the intermediary or the broker, some common steps are beneficial in withdrawing an IPO application.
● Immediately contact your intermediary or your broker who is in charge of looking after the application process.
● After contacting, you need to provide all the relevant details such as name, application number and any other relevant details that will help the broker for identification.
● Provide the reason behind your withdrawal if asked for.
● Carefully follow the instructions provided by your broker, such as filing out the withdrawal form and following all the required procedures along with a written confirmation.
● Finally, confirm the withdrawal with your broker and preserve the confirmation record.
Conclusion
To sum up, one must immediately talk with the intermediary or the broker about the cancellation process, irrespective of the reason behind the withdrawal. Follow the steps mentioned above and avoid the inclusion of any penalties or charges, or other future complexities.
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Frequently Asked Questions
The ideal time to cancel your application is before the allotment of the shares. Several factors impact the ability to withdraw or delete an IPO application. These factors include handling the application by the intermediary or the broker, the company going public, and any other regulations the IPO entertains for the cancellation process.
Typically, investors can cancel their application before the allotment of shares post-payment. However, it is essential to note that some deadlines or cancellation requirements might vary depending on the broker and the company.
Yes, it is possible to conceal an IPO application after accepting the UPI mandate. On accepting the UPI mandate, an investor authorises the bank to block the amount for IPO application.
Even after the investor has accepted the UPI mandate, it is possible to cancel the application before the allotment of shares. It is also essential to note that accepting the UPI mandate is a crucial step in the entire IPO application process, and withdrawing it after accepting the mandate can invite penalties or IPO cancellation charges.
The cancellation charges of an IPO application typically depend on several factors involving the intermediary or the broker handling the application, the company going public and any other applicable regulations.
Primarily, if the cancellation process is successfully initiated before the allotment of shares, there exists no inclusion of penalties or cancellation charges.
While on the other hand, if it is done after the acceptance of the UPI mandate, it typically results in deductions as penalties. Going through the terms and conditions before the final submission of an IPO application would help you to avoid any additional charges or penalties.
Yes, an investor can cancel an IPO application and reapply again, but it is essential to cancel before the share allotment happens. If the application is cancelled after the share allotment, an investor cannot reapply, as shares are allocated for other investors.
Certain limitations might exist depending on the company and the broker handling the application. Therefore going through all the terms and conditions before applying would be the best idea to avoid such hassles.
Applying for an IPO twice is not recommended for investors as it might invite several complications in the application process and impose unexpected penalties or charges.
An investor cannot apply for an IPO more than once as it typically leads to over-subscription and a potential imbalance in the allotment process. Moreover, applying for IPO twice using two different Demat accounts might also result in the rejection of the application.
Yes, one can exit an IPO after listing. But several factors must be considered, including the market conditions, the type of shares and the exchange. If the investor intends to sell the shares immediately after listing, they can exit the IPO post-listing. In such a case, the shares can be sold in the secondary market, where they will be traded like any other listed shares.
Applying for an IPO on the last day might bring several complications, including system errors and technical glitches that might delay the application process. Another drawback of applying for an IPO on the last day is a higher risk of oversubscription, where the total number of shares that have been applied for exceeds the total number of shares available for allotment.
Several guiding factors are behind the validity of an IPO, such as the regulatory requirements, the company offering the IPO and the exchange. An IPO is typically valid from the subscription period's opening date to a few days or weeks until the completion of the final allotment of the shares.