Rejected by Sponsor Bank - 

Sponsor Bank: Bank who lends support when a company chooses to go public to guide the company through the initial public offering (IPO) process and also provide credibility for new investors considering the IPO investment. 

  • Post validation, the Exchange will share the bid details electronically along with investors’ UPI ID, with the Sponsor Bank appointed by the issuer company.

  • The Sponsor Bank initiates and requests the investor to authorize blocking of funds through UPI app.

  • Sponsor Bank updates the status as Accepted / Decline / Pending (Fund Blocking Details) to the Exchange.

  • Sponsor Bank unblocks funds for non-allotted shares. (T+4)

If you do not confirm the UPI request, IPO bids shall be rejected by the Sponsor Bank. Also if an application is made using an incorrect UPI handle or using incorrect bank details, they will be rejected. This will result in the UPI mandate/payment status for the IPO being updated as ‘failed’. 

What to do: If you wish to apply for the IPO again, login to Upstox, delete your application and reapply. Ensure that you block the IPO amount by clicking on the UPI mandate/payment link sent via SMS or tapping on the notification under mandates from your UPI app. 

If you do not receive an SMS/notification for blocking the IPO amount upto six hours after placing your new application, you may have to reapply for the IPO. Click here to know how to delete and reapply for the IPO.

Rejected by Investor Bank - 

Investor Bank: Investor bank is that bank from where the funds get blocked for an IPO. On validation of block requests by the investor, the said information would be electronically received by the investors’ bank, where the funds, equal to application amount, would get blocked in investors' account. Update regarding the confirmation of block of funds in investors account would also be received by the investor.


If you reject the UPI mandate for your IPO application then it will be defined as “rejected by the investor bank”.


What to do: If you wish to apply for the IPO again, login to Upstox, delete your application and reapply. Ensure that you block the IPO amount by clicking on the UPI mandate/payment link sent via SMS or tapping on the notification under mandates from your UPI app. 

If you do not receive an SMS/notification for blocking the IPO amount upto six hours after placing your new application, you may have to reapply for the IPO. Click here to know how to delete and reapply the IPO.


Invalid UPI - 

UPI: Unified Payments Interface (UPI) is an instant payment system developed by the National Payments Corporation of India (NPCI), an RBI regulated entity. It allows you to instantly transfer money between any two parties' bank accounts.


UPI ID: 
UPI ID (also called Virtual Payment Address or VPA) is a unique ID. Customers can create a UPI ID by adding their bank account details on any UPI supported app  to send and accept money via UPI.

UPI as part of bidding: Investor will fill in the bid details in the application form as per the existing process along with his UPI ID i.e. only his/her own bank account linked UPI ID. 

Your IPO remains incomplete if you have entered an invalid UPI handle.


What to do: Here you need to apply for the IPO again by using a valid UPI handle, login to Upstox, delete your application and reapply. Ensure that you block the IPO amount by clicking on the UPI mandate/payment link sent via SMS or tapping on the notification under mandates from your UPI app. 

If you do not receive an SMS/notification for blocking the amount upto six hours after placing your new application, you may have to reapply for the IPO. Click here to know how to delete and reapply the IPO.

Block released (due to cancellation of order) - 

A retail investor can cancel or modify the IPO application any time while the IPO subscription window is open. An IPO application cannot be withdrawn once the IPO closes for the subscription. The Stock Exchange's IPO bidding window is open from 10:00 AM to 5:00 PM on working days.

The broker submits the cancellation request to the Exchange and updates the status as soon as they get a confirmation.

What to do: If you cancel your IPO order the blocked amount will be released within 10 working days from the refund initiation date or on the expiry of your mandate. To check the expiry of your mandate, login to the UPI app from where you have authorized the mandate.

If you don’t get any communication regarding the amount being blocked/released, kindly raise a request with your bank. 

To learn how to check the status of your blocked funds, refer to this link

how-to-check-mandate-status-blocked-released-from-upi-app-