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Why IPO applications get rejected

By InvestorTrack team · Last reviewed 30 October 2026 · 6 min read

A rejected application is different from not being allotted shares. Not being allotted means your bid was valid and lost in the draw. A rejection means the bid was invalid and never entered the draw. Rejections are avoidable, and most come from a handful of mistakes.

Rejected or not allotted?

If your bid was valid and the issue was oversubscribed, you may simply not have been drawn. See how the allotment lottery works. If the bid was invalid, the registrar marks it rejected and the status or reason may appear in your broker app or on the registrar's site. In both cases the money is unblocked, not lost.

The common reasons, and the fix for each

Common reasons an IPO application is rejected and how to avoid them
Reason	How it happens	How to avoid it
UPI mandate not approved	The request was not approved before the cut-off time on the last day, or it expired	Approve the request in your UPI app as soon as it appears. See the UPI mandate guide.
PAN and demat mismatch	The PAN is invalid or inactive, or the name on the PAN differs from the demat account	Check the details match before applying, and that the demat account is active.
Wrong or third-party UPI ID or bank account	The UPI ID or account is not in the applicant's own name, or is a joint account that is not accepted	Use your own UPI ID linked to your own bank account.
Multiple applications	More than one application from the same PAN for the same IPO in the same category	Apply once per PAN. Family members use their own PAN and accounts.
Insufficient balance	The account did not have enough money when the bank tried to block the amount	Keep the full bid amount available until the block is placed.
Bid below the final price	A bid at a price below the final issue price	Bid at the cut-off price, which accepts the final price.
Bid size out of limits	A bid above the category limit (for example a retail bid above ₹2 lakh), below the minimum, or not in whole lots	Check the lots and amount first. Use the application amount calculator.
Demat details wrong	A wrong DP ID or client ID, or a suspended or frozen demat account	Check that the demat details are correct and the account is active.
Not eligible for the category	A bid in an employee or shareholder quota without being eligible	Apply in the category you qualify for.

A short checklist before you apply

Is your PAN valid and your name the same in the PAN, demat and bank records?
Is your demat account active, and are the DP ID and client ID correct?
Is the UPI ID yours, and linked to a bank account in your name with enough balance?
Is the bid within the limits: whole lots, at least one lot, and under ₹2 lakh for a retail bid?
Is this the only application from your PAN for this IPO?
Will you approve the UPI mandate right away rather than in the last hour?

What happens to the money

For a rejected bid, the amount that was blocked is released, usually around two working days after the issue closes, which is the refund date on each IPO's Allotment tab. If the bid was never blocked, for example because the mandate was not approved, nothing was ever taken. If a block is still there a few days after the refund date, contact your broker or bank with the application number.

To see the status of an application, see how to check IPO allotment status. The registrar's page usually shows a reason code for a rejected bid.

This list covers common causes, not every case. Your broker, bank or the registrar can tell you the reason for a specific rejection.

Frequently asked questions

Why was my IPO application rejected?

The most common causes are an unapproved or expired UPI mandate, a PAN and demat mismatch, an account not in your own name, several applications from the same PAN, insufficient balance, and a bid outside the allowed size.

Is a rejected application the same as not getting an allotment?

No. A rejected application was invalid and never entered the draw. Not getting an allotment means your valid bid lost in an oversubscribed issue.

Do I lose my money if my IPO application is rejected?

No. The blocked amount is released, usually around two working days after the issue closes. If the bid was never blocked, nothing was taken.

Can I apply again if my application was rejected?

Only while the issue is still open. After the issue closes, a rejected bid cannot be corrected. Fix the problem and apply again for the next IPO.

Why does multiple application from the same PAN cause rejection?

Each PAN can make one application per category in an IPO. More than one from the same PAN is treated as multiple applications and can be rejected.

This article is general information about how IPOs work in India. It is not investment advice, and InvestorTrack.in does not tell you whether to apply for any IPO. Rules and timings are set by SEBI and the exchanges and can change, so check the offer document and the exchange notices for the IPO you are looking at. See our editorial policy and disclaimer. Found a mistake? Tell us.

Keep reading

UPI mandate for IPO applications, explained6 min read How to apply for an IPO, step by step7 min read How the IPO allotment lottery works8 min read IPO application amount calculatorOn InvestorTrack.in