How to withdraw an IPO bid on Zerodha

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Withdrawing an IPO bid on Zerodha cancels your application and instructs the sponsor bank to release the UPI mandate lien. Withdrawal is permitted at any time while the bid window is open; once the window closes, bids are locked and cannot be withdrawn. This guide covers when and how to withdraw, and what happens to the mandate block after withdrawal.

For the bid modification procedure (which is an alternative to full withdrawal) see the modification guide. For a combined overview see the modify-or-withdraw guide. For the UPI ASBA mechanism see the wiki article.

When to consider withdrawing

Common reasons to withdraw an IPO bid before the bid window closes:

  • You inadvertently placed the bid on the wrong issue.
  • You placed a bid at a specific price and now want to change the investor category (which requires withdrawal and re-application because the category cannot be modified in-place).
  • You received new information about the issuer (for example, a revised DRHP or a news event) and no longer want to apply.
  • You want to free up the mandate-blocked funds for another use before the mandate validity period expires (typically the listing date plus one working day).
  • You encountered a mandate error and need to reset the application by withdrawing and re-submitting.

Withdrawal followed by re-application is a valid workflow: after a withdrawal is confirmed, you can immediately submit a fresh bid for the same issue as long as the bid window is still open.

Step-by-step procedure

Sign in to Kite and navigate to Bids, then Order history

Go to kite.zerodha.com and sign in with your client ID, password, and TOTP two-factor authentication. Click Bids in the top navigation, then Order history in the sub-navigation.

Locate the bid to withdraw

Find the bid card for the issue you want to withdraw. Verify:

  • The bid status is Mandate Pending or Mandate Accepted (bids with status Rejected or Withdrawn cannot be actioned again; bids with status Allotted or Not Allotted have already passed the allotment stage and cannot be withdrawn).
  • The bid window is still open. The closing date is shown on the bid card and on the issue landing page.

Click Withdraw on the bid card

Click the Withdraw button on the bid card. A confirmation dialog appears asking you to confirm the withdrawal. The dialog typically shows the issue name, quantity, and price to help you confirm you are withdrawing the correct bid.

Confirm the withdrawal

Click Confirm in the dialog. Zerodha transmits the withdrawal to the exchange. The bid status on Order history updates to Withdrawn within seconds.

Verify lien release in the bank app

After the withdrawal is confirmed, the sponsor bank initiates the release of the UPI mandate lien. The release typically reflects in your bank account within one working day (often within a few hours on the same day for weekday withdrawals). Check your bank’s mobile app or NetBanking for a lien-release entry or a restoration of available balance.

If the lien is not released within two working days of withdrawal, contact Zerodha support with the bid reference number and the withdrawal confirmation timestamp.

Re-apply if the bid window is still open

If you want to apply for the same issue after withdrawing, return to Bids → IPO, locate the issue card, and click Apply again to submit a fresh bid. The fresh bid goes through the same flow: quantity, price, UPI ID, SEBI undertaking, mandate approval. The SEBI deduplication check treats the fresh bid as a new application (the withdrawn bid is no longer in the active bid pool).

Ensure the fresh bid and its mandate are both submitted and approved before 5 PM IST on the bid closing day.

What happens to the UPI mandate on withdrawal

The UPI mandate for an IPO is a block mandate, not a payment. When you withdraw:

  1. Zerodha transmits the withdrawal to the exchange.
  2. The exchange notifies the sponsor bank.
  3. The sponsor bank releases the lien on your bank account.
  4. The mandate status on NPCI’s system changes from Active to Revoked.

The lien release is entirely automated; you do not need to take any action in the UPI app. The mandate notification in your UPI app (visible under Mandates or Manage mandates) will update to Cancelled or Revoked.

Withdrawal on the closing day

Withdrawals on the last day of the bid window must be submitted before the bid closing time stated in the RHP (typically 5 PM IST, but some issues close earlier). As a guideline:

  • Submit the withdrawal before 4:30 PM IST on the closing day to ensure it is transmitted to and acknowledged by the exchange before the window closes.
  • After the window closes, the bid is locked. Zerodha cannot process a withdrawal instruction for a closed bid even if you submit it from the Kite interface.

What can go wrong

  • Withdraw button not visible. The bid window has already closed, or the bid status is Rejected or Withdrawn. Once the window closes, withdrawal is not possible.
  • Withdrawn bid but lien not released within two days. Contact Zerodha support with the bid reference number. Escalate to the sponsor bank if Zerodha support cannot resolve it within one additional day.
  • Re-application rejected as duplicate. This should not happen if the original bid was successfully withdrawn. If the exchange’s deduplication flags the re-application, check Order history to confirm the withdrawal status is Withdrawn (not Rejected) and contact Zerodha support.
  • Mandate already expired before withdrawal. If the mandate approval deadline (5 PM IST) passed without your approval, the bid is already treated as rejected; a withdrawal instruction is redundant but harmless.

References

  1. SEBI (Issue of Capital and Disclosure Requirements) Regulations 2018, Regulation 54 (Withdrawal of bids), https://www.sebi.gov.in/legal/regulations/aug-2018/sebi-issue-of-capital-and-disclosure-requirements-regulations-2018_39971.html.
  2. NPCI UPI 2.0 mandate specification, https://www.npci.org.in/what-we-do/upi/product-overview.
  3. How to modify or withdraw IPO bids, Zerodha Support Portal.
  4. SEBI Circular SEBI/HO/CFD/TPD1/CIR/P/2023/140 dated 9 August 2023, T+3 listing timeline.

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WebNotes Editorial Team

The WebNotes Editorial Team covers Indian capital markets, payments infrastructure and retail investor procedures. Every article is fact-checked against primary sources, principally SEBI circulars and master directions, NPCI specifications and the official support documentation published by the intermediary in question. Drafts go through a second-pair-of-eyes review and a separate compliance read before publication, and revisions are tracked against the SEBI and NPCI rule changes referenced in the methodology section.

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