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Applying for an IPO does not mean you cannot change your decision later. Numerous traders re-evaluate bids once they have examined demand, prices, or market-wide movement. Learning how to cancel an IPO application helps you act calmly when expectations change. The process stays simple before allotment and protects funds from remaining blocked. Knowing cancellation rules supports better control over cash flow and avoids rushed decisions during active IPO periods.
Key Takeaways
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IPO cancellation is allowed before allotment for eligible investors
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Retail bids up to ₹2 lakh can be cancelled or modified freely
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ASBA and non-ASBA cancellations follow simple online steps
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Cancellation helps manage risk, liquidity, and strategy changes
IPO Cancellation Rules For Different Investor Categories
Whether or not you can cancel an IPO application before the allotment depends largely on the investor category you belong to. Here is how the cancellation rules play out for different types of investors.
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Investor Category |
Meaning |
Rules for Cancelling an IPO Application |
|
Qualified Institutional Buyer (QIB) |
These are institutional investors who command high levels of capital. |
Cannot cancel or withdraw their bid once submitted. They can only modify it upwards (increase price or quantity). |
|
Non-institutional investors (NII) like high-net-worth individuals |
Individuals or entities bidding for over ₹2 lakh. |
Cannot cancel or withdraw their bid once placed. They can only modify it upwards; downward revisions are not permitted. |
|
Retail investors |
Individual investors bidding up to ₹2 lakh. |
Can cancel, withdraw, or modify (increase or decrease) their application at any time while the subscription window is open. |
|
Employees |
These are employees of the company who invest in the IPO |
Can cancel or modify their bid (increase or decrease) as long as the total bid value is up to ₹2 lakh. If the bid exceeds ₹2 lakh, it is treated under NII rules (no cancellation). |
|
Shareholders |
These are existing shareholders of the company who also want to invest in more shares via the IPO |
Can cancel or modify their bid if the application is up to ₹2 lakh. Just like employees, if the bid is over ₹2 lakh, they generally cannot cancel. |
Also Read: What is a Shareholder?
How To Cancel An IPO Application During The Subscription Period?
If you belong to any of the investor categories that can cancel the bid before the IPO closes, here is how you can withdraw your application. The process depends on the mode through which you applied — ASBA or non-ASBA.
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How To Withdraw Your IPO Application If You Chose The Asba Option?
If you had chosen to go via the Application Supported by Blocked Amount (ASBA) channel, here is how you can cancel your bid.
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Step 1: Log in to your net banking portal or the app through which you submitted your bid.
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Step 2: Head to the IPO tab and open the ‘Order Book.’
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Step 3: Then, identify the transaction ID for your IPO bid.
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Step 4: Select the option to withdraw or cancel your bid.
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Step 5: Confirm this selection to complete the process.
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How To Withdraw Your IPO Application If You Chose The Non-Asba Option?
If you submitted a non-ASBA application, you can follow the steps outlined below to complete the cancellation process.
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Step 1: Log in to the mobile app or platform provided by your stockbroker
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Step 2: Visit the IPO section and find the IPO application that you want to withdraw.
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Step 3: Choose the option to cancel or withdraw your bid.
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Step 4: Confirm your choice and revoke the accompanying UPI mandate to complete the process.
Also Read: How to Bid for an IPO?
How To Cancel Your IPO Application On The Angel One App?
If you have applied for an IPO through the Angel One app and are wondering how to cancel your IPO application, there’s good news. Withdrawing or cancelling your IPO bid in the Angel One app is extremely easy. Here is what you need to do.
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Step 1: Log in to your Angel One account using your user ID and password.
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Step 2: Select the ‘IPO’ option on the home screen.
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Step 3: Tap the ‘IPO orders’ option and select the IPO order that you want to cancel
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Step 4: Click on the ‘Cancel’ option and confirm this to withdraw your IPO bid.
Important Things To Know About Cancelling An IPO Application
Knowing how to cancel your IPO application is one thing. However, in addition to this, you should also be aware of some other important aspects of withdrawing an IPO bid. They include the following:
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There are no charges for cancelling your IPO application; however, you cannot cancel SME IPO applications.
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While stock brokers now support 24/7 applications, the bids are forwarded to the exchange only between 10 AM and 5 PM. So, this is the window during which you can cancel your bid.
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The time limits for cancelling a bid on the last day of the issue may be more stringent.
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The time limits for refunding the money debited, if any, vary from one bank to another.
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You can also choose to modify your application instead of cancelling it altogether.
Reasons For Cancelling An IPO Application
Investors may have different reasons for cancelling their IPO bid. Some may be more prudent than others. Commonly, you may find yourself in this position due to any of the following reasons.
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Negative News About The Company
If any negative news about the company surfaces during the period between submitting your IPO application and the closure of the subscription period, you may want to cancel your bid. Issues like legal troubles, negative financial forecasts or loss of business can be negative triggers that may cause you to re-evaluate your IPO application. If such news arises, you need to know how to cancel your IPO application.
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Concerns About Overvaluation
Ideally, you must carry out fundamental analysis and assess a company’s valuation before you submit an IPO application. However, if concerns about the overvaluation of a company arise after you have applied for its IPO, you may rethink your decision to participate in the new public offering. In such cases, you may want to cancel your IPO application to avoid the possible losses from the stock price declining after the issue.
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Changes In Market Conditions
If an Initial Public Offering (IPO) is launched during a volatile phase, chances are, the market may change drastically between the IPO opening and closing dates. Such changes may increase the risk associated with the new issue and/or with your existing investments. These new developments could also make you reassess how suitable the IPO investment may be for your portfolio. If you find it unsuitable, you need to know how to withdraw your IPO application.
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Liquidity Issues
Owing to market-related triggers or personal concerns, you may find yourself facing liquidity issues. For instance, a part of your funds may be locked up in long-term investments, or an asset that you intend to sell may be taking longer to liquidate than expected. Such unforeseen circumstances can lead to issues with liquidity and make you rethink the feasibility of investing in an IPO. So, you may want to understand how to withdraw your IPO application in such cases.
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Change In Investment Strategy
Another common reason for wanting to cancel an IPO bid is that your investment goals and strategies may have changed. While it is always a smarter idea to assess your strategy before you bid in an IPO, some new developments may lead to changes in your risk tolerance, market outlook or financial goals. As a result, the IPO may no longer fit into your strategy, so you may want to cancel your application.
Conclusion
This sums up all the key details of how to cancel an IPO application before the allotment. With the development of online trading technologies, cancelling an IPO bid has become much easier today for retail investors. That said, before you withdraw your application, ensure that your reasons for doing so are valid and not impulsive. This will prevent you from losing out on potentially rewarding issues or help you redirect the funds towards more lucrative investment avenues, as the case may be.
Also Read: What Is IPO?
