Major Causes of IPO Application Rejection
1. Multiple Applications Using the Same PAN
Submitting more than one application for the same IPO under the same PAN (including via different demat accounts) is strictly prohibited as per SEBI rules on applying IPO via two demat accounts, and leads to all such applications being rejected.
2. Incorrect or Missing Details
Wrong or incomplete information such as incorrect PAN, demat account number, details about the IPO application process using ASBA, or bank information are grounds for technical rejection. Double-check form entries before submission.
3. Mismatches in PAN, Demat or Bank Account
The PAN must match across your application, bank account, and demat details. Any discrepancy or name mismatch triggers a rejection at the registrar’s scrutiny.
4. Wrong or Unlinked UPI ID
Using an invalid or unlinked UPI ID, entering the wrong UPI handle, or not approving the UPI mandate can annul your application.
5. Not Approving UPI Mandate
Failure to authorize or accept the mandate request on your UPI app, or entering the wrong app PIN, results in application rejection as funds remain unblocked. Detailed UPI mandate approval steps help avoid such mistakes.
6. Double Applications or Duplicates
Applying more than once (intentionally or by mistake) with variations in name but the same PAN or beneficiary considered a duplicate and rejected.
7. Applying at the Wrong Bid Price
Entering a bid price below the final cut-off price for book-built IPOs means your application discarded as ineligible. Always bid at the cut-off price for maximum chances.
To avoid rejection during IPO allotment, follow the one-PAN-one-application rule, ensure all details are accurate and matching, promptly approve your UPI mandate, and always check for valid data across all fields.
IPO applications get technically rejected more often due to minor errors than by the luck-based IPO allotment process, especially in process for IPO oversubscription.
Understand more about common IPO allotment rejection scenarios, and If your funds were blocked but the application rejected, use checking IPO refund status to track reversal.
