What to Do If IPO Refund Not Received? | Quick Guide

What to do if IPO refund not received?

What to do if IPO refund not received? This query is common among IPO investors these days. Internet data shows many IPO investors search for IPO Refund Not Received in their account and get worried because their blocked amount against the applied IPO is not unblocked still after the refund initiation date.

IPOs have a timetable that follows from the IPO opening date, closing date, allotment date, refund initiation date to the listing date. Officially refund initiation date falls next day of the allotment date. So one has to wait for one day if you are not allotted the Shares.

If the IPO Refund Not Received after the refund initiation date then you can check the communication platforms like text messages on the registered mobile number, and email ID provided. Before refund initiation, one gets information from the company’s Registrar regarding the initiation of the unblocking of the hold amount.

Nowadays there is a huge surge among investors in applying for IPOs i.e. initial public offerings. Because besides the risk it carries it has a tendency to give higher returns in a short horizon say a week.

But not all the time things go smoothly. Many bidders face issues in refunding of IPO amount for non allotted Shares. So if you have applied for any IPO and are worried about what to do if an IPO refund is not received then this blog and video are for you.

What circumstances lead to IPO refund?

The following situations will result in the return of the IPO funds:

• Bid cancellation for an IPO.

• Not allotted.

• Failure to pay the allocated sums and the minimal subscription.

• Permission to list not granted.

• Not getting at least 75% of QIB through the QIB method.
  
  

There are 3 steps to unblock the amount.

1) Very First check with the Bank if they have received the refund instructions from the company’s Registrar in which you have applied for the IPO. You can confirm it by logging in to your net banking or visiting the Branch.

If you had applied through ASBA (Application Supported by Blocked Amount) then you get the message from the Company’s Registrar as- “We have issued instructions to your bank for unblocking the ASBA application amount of Rs. (amount) towards (Company name) for application number (your application number) due to non-allotment. Please reach out to your Bank for confirmation on unblocking”. This simply means that the company’s Registrar has instructed the Bank to unblock the ASBA application amount from their end. The Bank then has to uplift the hold on your blocked amount.

If you had applied via UPI then your Bank will be instructed to ‘revoke the mandate’ instructions from the Registrar of the company.

2) If the hold is not uplifted in one or two working days then you should visit the concerned branch of the Bank and know about the cause of the delay and take further action accordingly. You can also write to the Bank’s mailing address and describe your concern. If the issue is not resolved in 30 days you can write to the RBI Ombudsman at crpc@rbi.org.in.for the grievance redressal.

3) Before writing to the RBI Ombudsman you can also reach out to the SEBI and raise a concern for the same. You can visit their dedicated SCORES SEBI portal which is a grievance redressal facilitation portal from SEBI for the timely resolution of investors’ issues and queries. 

Still, have a doubt about how to complete the process? Here is a video that skillfully explains the process step-wise. Click here to watch the detailed video of IPO Refund Not Received (video link) in which 3 simple steps to unblock the amount have been explained. 

Conclusion

The first step to be taken in case of an ‘IPO refund not received’ is visiting the bank’s counter and checking whether any instructions have been given for the release of blocked funds. If the problem continues, go to the Bank branch and do a check. If the situation is still not dealt with, you may get in touch with the RBI Ombudsman or SEBI. Most importantly, ensure that the communication process is initiated on time as it will help to resolve the problem faster.