The reasons for HNI IPO application failure are:
- Incorrect UPI ID: You must provide an accurate UPI ID when submitting your IPO application. Regulatory guidelines prevent you from cancelling HNI orders after submission. For example, if your actual UPI ID is abcd@okhdfcbank but you mistakenly enter abbd@okhdfcbank in your application, you cannot cancel the application to correct this error.
- Delayed or missing mandate: Technical issues at your sponsor bank or the exchange during mandate processing can cause delays or prevent mandate creation entirely.
- Mandate rejection: Your bank or the exchange may initially accept your mandate but reject it later due to technical issues.
Investors applying for mainboard IPOs have the option to apply through ASBA if issues arise. However, no such alternative is available for SME IPOs if you have already tried applying through UPI ASBA.
Things to keep in mind
- The IPO application is valid only if funds are blocked, and the final decision depends on the Registrar and Transfer Agents' (RTA) discretion.
- If you submit multiple SME IPO applications under the same PAN, the exchange will automatically reject all applications.