In the fast-moving world of IPOs, sometimes new information comes to light, perhaps a sudden drop in market sentiment, a negative news report, or a change in your personal financial situation. Fortunately, the Indian stock market allows retail investors a safe exit. You are not locked into your decision until the very last second of the bidding window.

In 2026, the cancellation process is tightly integrated with the T+3 listing cycle. However, cancelling involves two distinct steps: first, telling the exchange you no longer want the shares, and second, ensuring your bank releases the block on your money. Whether you use a sleek mobile app like GPay or a traditional Net Banking portal, here is how to take your money back and exit the race.

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The 7 Steps to Cancel via Broker App (UPI Method)

If you applied using a broker like Motilal Oswal, your cancellation starts in the app and ends in your UPI portal.

1. Open the IPO Section

2. Select Your Application

Find the specific IPO you want to withdraw from. Tap on it to open the bid details. You will see options like Modify or Cancel.

3. Tap on Cancel Bid

Click the Cancel or Withdraw button. The app will ask for a final confirmation. Once you confirm, the broker sends a request to the Stock Exchange (NSE/BSE) to delete your bid from the master book.

4. Verify the Status

Check your app's order history. The status should change from Bid Placed to Cancelled or Withdrawn.

5. Revoke the UPI Mandate (Manual Step)

Even if the broker cancels the bid, your money might remain blocked in your bank account. Open your UPI app (GPay, PhonePe, Paytm).

Go to the Mandates or Autopay section.
Find the active mandate for that IPO and click Revoke or Decline.

Also read: How to find IPO Mandate on UPI apps in 2026

6. Enter UPI PIN

You will need to enter your UPI PIN to authorize the revocation. This tells the bank that the lock on your funds is no longer required.

7. Confirm Unblocking

Wait for a confirmation SMS from your bank. Your Available Balance should now include the previously blocked amount.

How to Cancel via Net Banking (ASBA Method)

If you applied directly through your bank, the process is handled entirely within your banking portal.

Login: Access your Net Banking (SBI, HDFC, ICICI, etc.).
Find ASBA: Go to Investments → IPO/ASBA → Order Book
Select & Delete: Choose the IPO application and click the Delete or Withdraw link.
Confirmation: Enter the OTP sent to your phone. The bank will process the request and typically unblock the funds within 1–2 working days.

Important Rules & Deadlines (2026)

Feature

Retail Investor (RII)

HNI Investor (NII)

Full Cancellation

Allowed

NOT Allowed

Modification

Can increase or decrease bids.

Only Increase allowed.

Deadline

Before 5:00 PM on the last day.

Before 4:00 PM on the last day.

Charges

Zero Fees.

Why the HNI Category (NII) is Different

If you applied for more than ₹2 Lakhs, take note:

No Quit Button: Once an HNI places a bid, they cannot withdraw it. This rule exists to prevent large players from artificially inflating subscription numbers and then exiting at the last minute.
Upward Only: You can change your bid to a higher price or more shares, but you cannot reduce the amount or exit the IPO entirely.

Frequently Asked Questions (FAQs)

Can I cancel my IPO bid at 11:00 PM?

No. You can only cancel during Market Hours (10:00 AM to 5:00 PM) while the IPO is open. If you try at night, the request will only be processed the next morning at 10:00 AM.

I cancelled my bid, but the money is still blocked. Why?

Unblocking is not always instant. While the broker cancels the bid immediately, the bank might take 24-48 hours to process the release instruction from the exchange.

Is there a fee for cancelling an IPO?

No. Cancellation is a completely free service provided by all SEBI-registered brokers and banks.

Can I re-apply for the same IPO after cancelling?

Yes! As long as the IPO window is still open, you can cancel an old bid (perhaps because you made a mistake) and place a fresh one immediately.

What if the Cancel button is missing in my app?

This happens if the bid is currently being processed by the exchange. Wait for 30 minutes and try again. If it still doesn't appear, contact your broker's support immediately.

Can I cancel after the IPO has closed?

No. Once the clock hits 5:00 PM on the final day, your application is locked. You cannot withdraw, even if you haven't been allotted shares yet.

Does cancelling affect my Credit Score or future luck?

Not at all. Cancelling is a normal part of trading. It has zero impact on your credit score or your chances of getting allotment in future IPOs.

What is a Partial Cancellation?

Some platforms allow you to reduce the number of lots (e.g., from 10 lots to 1 lot) instead of exiting completely. This is useful if you just want to reduce your exposure.

My UPI mandate expired, is my bid cancelled?

Yes. If you don't approve the mandate or if it expires, the exchange will treat your application as Invalid and it will be automatically cancelled.

I got a Rejection SMS after cancelling. Is that normal?

Yes. Sometimes the exchange sends a Rejection message because the bid was deleted. It's just a technical way of saying the application is no longer active.

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