There is no 'refund' — it's an unblock
Under ASBA, your IPO bid amount is blocked in your own bank account, not paid out. So when people say 'IPO refund', what actually happens is the bank releases the hold — the money was always yours and was never debited. Only allottees have funds debited (for the shares they got). Understanding this removes most of the worry: there is nothing to 'come back' from the company; the bank just frees your balance.
The timeline (24-48 hours)
For non-allottees and for the unutilised portion of partial allotments, the block is released on or within 24-48 hours of the allotment date — frequently the same day the basis of allotment is finalised. The UPI mandate expires by itself. No interest is paid on the blocked period. After release, your full balance is spendable again.
Partial allotment means a partial unblock
In the NII/HNI category and occasionally in retail with leftover lots, you may be allotted fewer shares than you bid for. In that case only the allotted value is debited and the remaining blocked amount is released back to you on the same 24-48 hour timeline. Check the registrar's result to see exactly how many lots were allotted versus applied.
Why the unblock gets delayed
Common causes: a bank-side batch delay over weekends or holidays (the allotment date lands on a Friday and release completes Monday); a stale 'hold' showing in the app while the balance is actually free; or, rarely, a mismatch between the registrar's instruction and the bank's processing. The first two are timing artefacts that clear on their own within a couple of working days.
Money still blocked after allotment — steps
If a hold persists beyond about 5 working days after the allotment date: (1) verify on the registrar's website that you were not allotted (or only partly); (2) re-check your actual bank balance and statement, not just the app tile; (3) call your bank with the IPO name and the ASBA/UPI mandate reference number; (4) if still unresolved, contact the IPO registrar; (5) as a last resort, file on SEBI's SCORES portal.
Who to contact, in order
Your bank is the first port of call, because the bank holds and releases the funds — most unblock issues are bank-side. Your broker can confirm the bid status and mandate reference. The registrar (Link Intime/MUFG, KFin, Bigshare, Cameo) confirms the allotment result. SEBI's SCORES complaint portal is the escalation path if the bank and registrar do not resolve it within a reasonable time.
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