What are the reasons for HNI IPO application failure?

The reasons for HNI IPO application failure are:

• Incorrect UPI ID: The UPI ID must be accurate when submitting the IPO application. As per regulatory guidelines, HNI orders cannot be cancelled after submission. For example, if your UPI ID is abcd@okhdfcbank and you mistakenly submit your IPO application with abbd@okhdfcbank, it is not possible to cancel the application to correct the UPI ID.
• Delayed or missing mandate: This may occur due to technical issues at the sponsor bank or the exchange during mandate processing.
• Mandate rejection: Even if a mandate is initially accepted, it can be rejected later due to technical issues at the bank or exchange.

Investors applying for mainboard IPOs have the option to apply through ASBA if issues arise. However, no such alternative is available for SME IPOs.

Did you know?

• The IPO application is valid only if funds are blocked, and the final decision depends on the Registrar and Transfer Agents' (RTA) discretion.
• If multiple SME IPO applications are submitted under the same PAN, the exchange will automatically reject them.