Question 1

When can I expect my IPO refund?

Accepted Answer

The initiation of an IPO refund is generally expected within four working days of the issue's closure.

Specific IPO refund dates and fund unblocking dates are detailed in the Red Herring Prospectus (RHP) for each issue. Here's an overview of IPO reimbursement timelines based on different scenarios:

| Reason for Refund | Timeline |
|---|---|
| Listing permission not received | Within 4 days of receiving intimation of rejection from stock exchange(s) |
| Failure to meet minimum subscription (90% of net offer) | Within 4 days of issue closure |
| Less than minimum allottees (1,000 for mainboard, 200 for SME IPOs) | Within 4 days of issue closure |
| Less than 75% allotment to QIBs via mandatory book-building | Within 4 days of issue closure |
| No allotment received | Within 4 days of issue closure |
| IPO cancellation refund | Generally within 1-2 days of cancellation or UPI mandate expiration (if applicable) |

Question 2

How do I receive my IPO refund?

Accepted Answer

Investors typically do not need to submit any special request to receive their IPO money.

For ASBA (Application Supported by Blocked Amount) bids, the blocked amount will be released from your bank account. If you applied via UPI, the mandate will be revoked. In other cases, often applicable to anchor investors, the amount will be credited electronically through methods like NACH, RTGS, NEFT, or direct bank transfer. The issuer usually initiates the refund process within four working days after the issue closes.

The Registrar of the IPO instructs the Self-Certified Syndicate Bank (SCSB) to unblock or refund the amounts to the investor as soon as the allotment process is completed.

Question 3

How can I check the status of my IPO refund?

Accepted Answer

You can check your bank account to determine the status of your IPO refund.

Generally, you will receive a notification about the refund or unblocking on the IPO refund initiation date. However, if you don't receive a message, you can log in to your bank's application or website to check if the funds in your ASBA account have been unblocked.

For UPI bids, the mandate will be revoked on the IPO refund initiation date or on the mandate expiration date, depending on your bank's policy. It's a good practice to check the mandate expiration date when you approve the mandate and adjust it if necessary.

Question 4

What are the ways to get my money back from an IPO?

Accepted Answer

You can recover money from an IPO in a few ways: by canceling your IPO application (if you're a retail investor in mainboard IPOs, an individual investor in SME IPOs, an employee, or a shareholder, subject to RHP rules), by selling your IPO shares once they are listed, or by simply waiting for the refund process to initiate if you didn't receive an allotment.

Here are the main options:
• If you wish to withdraw your IPO application, you can do so until the IPO closes.

• If you were allotted shares, you can sell them after they are listed on the stock exchange to get your investment back.

• If you did not receive any allotment, you just need to wait for the funds to be unblocked from your account.

Question 5

Is IPO application money always refundable?

Accepted Answer

IPO application money is refundable only under specific circumstances:

• You cancel your bid as a retail investor while the IPO is open for subscription.

• You do not receive any allotment of shares.

• The company does not receive listing and trading permission.

• The IPO does not receive the minimum required subscription.

• The minimum number of allottees is not met (less than 1,000 in a mainboard IPO or less than 200 in an SME IPO).

• The issuer fails to allot 75% of shares to Qualified Institutional Buyers (QIBs) through the QIB route method.

Question 6

What should I do if I haven't received my IPO refund?

Accepted Answer

If you haven't received your IPO refund or if the blocked amount has not been unblocked, you should contact your bank and the IPO Registrar to check the status. Both the registrar and banks are responsible for processing IPO refunds.

Follow these steps if funds in your bank account are not released or credited within the specified deadlines:
• First, reach out to your bank to inquire about the status.

• Next, contact the IPO Registrar. You can do this online via email or by visiting their nearest branch.

• As a last resort, if you don't receive a response or action from the Registrar, you can raise an investor grievance with SEBI through their online portal.

**Note:** While there isn't a specific IPO refund mail format, providing complete IPO application details and your contact information to each intermediary will help them address your queries more efficiently.

Question 7

When can I expect to receive my IPO refund?

Accepted Answer

The funds will be unblocked from your ASBA account on the refund date specified in the IPO Offer Document.

The exact amount unblocked or refunded depends on your allotment status. According to new SEBI guidelines, IPO refund timelines have been shortened. The issuing company is now required to refund IPO money to investors within four working days of the issue's closing date.

Question 8

How long does it typically take to get an IPO refund?

Accepted Answer

As a general rule, the initiation of an IPO refund takes four working days after the closing date of the issue.

Once the allotment process is complete, it is the Registrar's responsibility to inform the bank about the allotment status and initiate refunds for partial allotments or non-allotments. The bank and the Registrar must collaborate closely to ensure the smooth and timely processing of refund amounts or fund releases.

If you experience any delays, you should contact your bank or the IPO Registrar to inquire about the status of your IPO refund.

Question 9

What is an IPO surplus refund?

Accepted Answer

An IPO surplus refund is the return of any excess amount that remains after the required funds for your share allotment have been debited.

When you apply for an IPO, the application money is blocked in your bank account. After the allotment process, you might receive a full allotment, a partial allotment, or no allotment at all.

• If you receive a full allotment, the entire blocked amount will be debited from your account.

• In the case of a partial allotment, only the amount corresponding to the number of shares allotted will be debited. The remaining blocked amount will be released as a surplus refund on the IPO refund date.

• If you receive no allotment, the entire blocked amount will be returned to your account.

Question 10

How can I check my IPO refund status?

Accepted Answer

Your bank will typically send you a message or notification regarding the credited or released IPO refund amount.

The unblocking of IPO funds is expected to occur according to the deadlines specified in the IPO Offering Documents. If you don't receive a notification from your bank, you should log into your bank account and check for the unblocked amount or credit as expected. If there are no updates, contact your bank to inquire about the status.

You will receive a refund if you receive no allocation or only a partial allocation of shares.

Question 11

How can I file a complaint about an IPO refund?

Accepted Answer

If you are experiencing difficulties with the unblocking of IPO funds or receiving your IPO refund, you can file a complaint on SCORES. This is SEBI's online portal specifically designed for investor complaints.

You can also submit a physical letter to SEBI, detailing the problem with all relevant information. Filing a complaint with SEBI should be considered a last resort after attempting to resolve the issue directly with your bank and the IPO Registrar.

SEBI Helpline for Investors: 1800 266 7575 or 1800 22 7575

**Important:** Before filing a complaint with SEBI, ensure you have already contacted your bank and the Registrar for the IPO. Also, keep all your IPO application details readily available.

Question 12

What is the typical timeline for an IPO refund?

Accepted Answer

The initiation of an IPO refund should generally be made within four business days of the issue's closing date.

It is expected that banks/SCSBs and the Registrar will work closely to arrange for the prompt refund or release of funds for the IPO. However, sometimes issues on the part of the bank or registrar can delay the process, causing the refund to take longer than the specified deadlines.

In the case of an IPO UPI refund, the mandate might be revoked on its expiration date, which could be after the IPO refund initiation date. Therefore, if you experience delays, first contact your bank and then the Registrar to get an exact status update on your IPO refund.

Question 13

When is the IPO blocked amount refunded or unblocked?

Accepted Answer

The amount blocked for an IPO application typically gets released within four business days of the IPO's closure.

While the amount is blocked, the applicant continues to earn interest on it but cannot use the funds. Once the amount is unblocked, the applicant is free to use the money for any purpose.

The extent of the unblocking depends on your allocation status. In the case of a partial allotment, only a portion of the blocked amount is released, and the rest is debited. If there is no allotment or if the IPO is canceled by either the applicant or the issuer, the entire blocked amount is released.

Reason for Refund	Timeline
Non-Allotment	Within four days of issue closure.
Non-receipt of listing permission	Within four days of receiving rejection from the stock exchange.
Non-receipt of minimum subscription	Within four days of issue closure.
Minimum number of allottees not achieved	Within four days of issue closure.
Failure to allot 75% of QIB under QIB route	Within four days of issue closure.

Mode of Refund	Instruction for Return	Investor Category
ASBA	Unblocking of the amount	· Retail Individual Investor (RII) · Non-Institutional Investor (NII) · Qualified Institutional Buyer (QIB)
UPI	Revoke the mandate	· Retail Individual Investor (RII)
Electronic mode	Direct credit via NACH, NEFT, etc.	· Anchor Investor

IPO Refund and Fund Release

Reasons for Returning IPO Funds

1. Non-Allotment

2. Non-receipt of Minimum Subscription

3. Failure to Obtain Listing Approval

4. Failure to Allot to Minimum Number of Allottees

5. Failure to Allot 75% to QIBs

Timeline for Unblocking IPO Funds

Initiation of IPO Refund Process

Steps in Initiating IPO Refunds

Refund Methods

What to Do If IPO Funds Aren't Unblocked

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