Why has the blocked amount not changed when the IPO bid was modified?

Why has the blocked amount not changed when the IPO bid was modified?

The blocked amount will remain unchanged if the updated mandate is not accepted after modifying the bid. Upon modifying the bid, a notification with the new mandate request is sent to the UPI app. To approve the mandate, click "Authorize," and the funds will be blocked according to the modified bid.

Example Scenario

Mr. P, with ₹60,000 in his bank account, initially applied for 2 lots of an IPO, with ₹20,000 blocked (₹10,000 per lot). After modifying the order to 3 lots, a new mandate for ₹30,000 is sent to the UPI app. Upon acceptance, only an additional ₹10,000 is blocked, not an extra ₹30,000.



    • Related Articles

    • What are the steps to modify or cancel an IPO bid?

      To Modify IPO Bids: · Open the 5paisa Mobile App: Launch the 5paisa Mobile App on your smartphone or mobile device. · Navigate to the IPO Tab: Once the app is open, locate and tap on the "IPO" tab or option from the main menu. This will take you to ...

    • How can I apply for an IPO without using UPI?

      To apply for an IPO without using UPI, you can utilise the ASBA (Application Supported by Blocked Amount) facility provided by banks. Here's how you can do it: · Visit Bank: Visit your bank branch or log in to your internet banking portal. · Fill ...

    • Why is the amount blocked when I apply for an IPO?

      · Temporary Block: Funds are temporarily blocked when you apply for an IPO to ensure you have enough money to buy the shares if your application is successful. · Commitment Assurance: This blocking is a standard practice to secure your commitment to ...

    • Where I can check status of my IPO?

      · Go to the IPO tab on the app: Open the mobile app and navigate to the section specifically dedicated to IPOs. This section may be labelled as "IPO" or "New Issues" and can usually be found in the app's main menu or navigation bar. · Select "Past ...

    • Are there any charges for applying for an IPO?

      Applying for an IPO is generally free, but there could be some associated costs related to your Demat account or selling the shares later. What is ASBA? Applications Supported by Blocked Amount (ASBA) is a process developed by India's Stock Market ...