An IPO bid counts only once you approve the UPI mandate and your bank blocks the application amount in your account. If that block doesn't go through, the application is rejected. The most common reason by far is that the UPI mandate wasn't approved before the cut-off—and in most cases you can simply re-apply while the IPO is still open.
Here are the usual reasons, starting with the one we see most often, and what to do about each.
What are the common reasons an IPO application is rejected?
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The UPI mandate wasn't approved in time. You didn't approve the mandate in your UPI app before the day's cut-off, declined it, entered the wrong UPI PIN too many times, or the request timed out. → What to do: Re-apply while the IPO is open and approve the mandate request in your UPI app promptly—the app shows the approval deadline.
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The UPI ID was invalid or unsupported. A mistyped UPI ID, a handle your bank has deactivated, or a bank or UPI app that isn't enabled for IPO mandates. Not every bank and UPI app supports IPO applications through UPI-ASBA—only the banks and third-party UPI apps on NPCI's live-partner list do. → What to do: Re-apply using a UPI ID from a bank or UPI app that supports IPO (UPI-ASBA) mandates, and check the ID for typos.
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Insufficient funds in the linked bank account. The full application amount must be free to be blocked in the bank behind your UPI ID when the mandate is processed. The money is blocked, not debited, but the balance still has to be there at approval. → What to do: Keep the full amount available in that account and re-apply.
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A technical issue at your bank or on the UPI network. Your bank's systems or NPCI were temporarily unavailable, or the bank rejected the block for a technical reason. → What to do: Wait a short while and re-apply before the IPO closes; if it keeps failing, try a UPI ID from another bank.
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The transaction wasn't permitted on your account. Some bank accounts aren't enabled for UPI mandate transactions. → What to do: Ask your bank to enable UPI mandate/IPO transactions on the account, then re-apply.
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Your demat account wasn't active, or its details didn't match. If the demat account is suspended, or the demat account / DP ID on the application doesn't match your actual holding account, the application is rejected. → What to do: Make sure your demat account is active and its details are current—especially if you've recently changed your demat account. Raise a ticket with Rupeezy Support if it shows suspended, then re-apply.
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The payment wasn't from your own account, or it didn't match your demat account. IPO applications can't be funded from someone else's account—third-party payments aren't allowed. The bank account behind your UPI ID must be your own and must be a bank account linked to your demat account. For joint accounts, the first holder of the bank account must be the same as the first holder of the demat account. → What to do: Apply with a UPI ID tied to your own bank account that's linked to your demat account, with the first holder matching.
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More than one application from the same PAN in the same category. SEBI rules allow only one application per PAN per category. A second application from the same PAN in the same category—even from a different account or broker, or once by UPI and once by ASBA—gets every one of them rejected as duplicates, not counted as a second chance. Individual and HNI count as the same pool here: one PAN can bid in one of them, not both. → What to do: Submit one application per category. Family members with their own PAN and demat account can each apply in their own right. If an IPO has an Employee or Existing Shareholder reserved portion and you're eligible, that's a separate category—you can apply there in addition to your Individual or HNI application. See How do I apply for an IPO in the shareholder or employee category?
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The bid price was outside the price band. A custom bid has to be within the issue's price band; a bid outside it is invalid and isn't considered. → What to do: Re-apply with a price inside the band, or bid at the cut-off price.
Things to keep in mind
- Approve the mandate before the cut-off, every time—it's the single best way to avoid a rejected application. See How do I apply for an IPO? for the full flow, including the UPI mandate and the subscription-based trigger.
- A rejected application means no money was taken—the amount is only blocked when the mandate succeeds. It was never valid, so it never entered the allotment lottery either. For what happens to a block that did go through, see When will I get my money back after an IPO?; to track an application, see How do I check my IPO application status?.
- Bidding for HNI? See How do I apply for an IPO in the HNI (NII) category? for the points specific to HNI bids.