A retail investor who applied in the retail category (less than Rs 2 lakhs) can cancel or modify the IPO application any time while the IPO subscription window is open. An IPO application cannot be withdrawn once the IPO closes for the subscription. Certain banks or brokers limit the time on the issue closing day (i.e. up to 2 PM) to cancel or revise IPO bids.
High net-worth individuals (HNIs) investing in the Non-Institutional Investors (NII) category cannot cancel their IPO applications. They can only revise (only increase the bidding price) their IPO application before the IPO subscription window closes.
Note:
- The stock exchange’s IPO bidding window is open from 10 AM to 5 PM on working days. The IPO application cancellation request made when the exchange bidding window is closed (5 PM to 10 AM) are processed by the exchange at morning 10 AM the next day.
- Most banks do not permit to modify or cancel till 5 PM on the issue closing day. The limit the time to 2 or 3 PM.
- It may take up to 24 hours after the cancellation request to get the funds unlocked.
- A retail investor can also reapply in the IPO after successfully cancelling the request by the exchange.