Understanding IPO Refunds: Key Dates and Timelines

Investing in Initial Public Offerings (IPOs) is an exciting opportunity, but it's essential to understand the refund timeline and process, especially if the allotment slips through the hands of an interested investor. This article delves into the key points and timelines associated with refunding funds after an IPO allotment.

Refund Timelines and Process

The timing of refunds for IPO allotments can vary based on several factors. According to the provided information, most individuals will receive their refunds within 3 to 10 days after the IPO allocation is finalized. The refund process usually starts on the day the allocation is confirmed and funds are returned to the investor's account. However, there can be some nuances depending on the payment method used.

Refund via Net Banking

When an investor applies via net banking, the unblocked funds typically appear within 24 hours of the refund date. This method is generally smoother compared to UPI payments, where the funds can sometimes require further action. If the funds don't unblock even after the mandate end date, contacting NPCI may be necessary as it is the primary drawback of applying IPOs via UPI.

Refund via UPI

In the case of UPI payments, the funds might be released on the refund date, but in most instances, there is a need to wait until the mandate end date. Investors can check the mandate end date by accessing their UPI application’s mandate section. If the funds still don't unblock, contacting NPCI is often the next step.

General IPO Refund Process

Typically, IPO applicants are informed of the refund process online or through an email. The cash is credited back to investors on or before the end date of the mandate. IPO funds are blocked until the allotment is finalized. Once it is confirmed, the refund process initiates for those who did not receive the shares.

The Case of Mrs. Bector's Food Specialities Limited IPO

Looking at the specific IPO of Mrs. Bector's Food Specialities Limited, let's break down the key timeline:

Bid/Offer Launch Date: December 15, 2020 Bid/Offer Last Date: December 17, 2020 Basis of Allotment Finalization Date: December 22, 2020 Initiation of Refunds: December 23, 2020 Credit of Shares to Demat Account: December 24, 2020 IPO Shares Listing Date: December 28, 2020

Based on this timetable, the IPO refunds should be processed by December 23, 2020, ensuring that the refund process is completed by the end of the mandate period.

Conclusion and Important Notes

While the process of refunding IPO allotments is well-defined, there might be some discrepancies. Always stay updated with the refund timeline and process outlined by the security company handling the IPO. If you do not see your funds within the expected timeline, it is advisable to reach out to the security company.

Disclaimer: This information is for educational purposes only. It is not a substitute for professional advice. Please consult a financial advisor for personalized guidance on IPO investments.

Key Takeaways:

Refunds for IPO allotments generally occur 3 to 10 days after the allotment is finalized. Net banking and direct bank transfers usually result in faster refunds. Contacting NPCI might be necessary if refund delays occur with UPI payments.