Why IPO applications get rejected
A rejected application shows as nothing allotted, which looks just like losing the draw. These are the usual causes.
Most common
The UPI mandate was not accepted by 5 PM on the closing day, so no money was blocked and the bid did not count.
More than one application from the same PAN in the same category, or applications in both Retail and HNI from one PAN. All of them are rejected.
The bank account did not have enough balance when the mandate was approved, so the block failed.
Details that must match
The PAN, demat account and bank account (or UPI ID) should all belong to the applicant. Using someone else's UPI ID or bank account for your application is a common reason for rejection.
The demat account must be active, with KYC complete. A wrong DP or client ID, or an inactive demat account, makes the application invalid.
Bid errors
A retail bid above ₹2 lakh, or an HNI bid that is not above ₹2 lakh, is in the wrong category. A bid below the final price, without the cut-off option, is not allotted. Bids not in multiples of the lot size are invalid.
How to tell
Registrar sites sometimes show a rejected application with a reason, sometimes simply as no record or nothing allotted. If you expected a valid application and see no record, check the PAN, the category and whether the mandate went through.
Related guides
- The IPO UPI mandate, explained
- Can family members apply for the same IPO separately?
- How to check IPO allotment status
More on subscription, allotment and refunds
- How IPO allotment works
- What is IPO subscription (times subscribed)?
- IPO money still blocked? What to do
- How to improve your chances of an IPO allotment
- What happens when an IPO is undersubscribed
- IPO shares not showing in your demat account
See today’s IPOs with live GMP and subscription
Information, not investment advice. GMP is an unofficial grey-market indicator; figures come from public sources (InvestorGain) and may be late or wrong. Not registered with or affiliated to SEBI, the exchanges, the registrars or InvestorGain.