A UPI mandate failing after your IPO shares have already been allotted is a bank-side issue with debiting your funds, not a problem with your application. Your allotted shares are still yours, and your bank will attempt the debit again.
Why can the mandate fail after my shares are already allotted?
Your UPI mandate does two things at two different points: it blocks your bid amount when you apply, and — once your shares are allotted — it's used to actually debit that blocked amount from your bank account. After allotment, the Registrar and Transfer Agent (RTA) sends the allotment file to your bank, and your bank deducts the funds against it. A technical issue on your bank's side can cause that debit itself to fail. Because this happens after allotment is already decided, it has nothing to do with whether your bid or application was valid.
Do I still keep the shares that were allotted to me?
Yes. Your allotted shares are credited to your demat account regardless of whether the debit has gone through yet, and you can trade them even before your bank completes it.
What happens if the debit fails?
Your bank makes another attempt at a later time — this is handled on the bank's side, and there's no action needed from you.
You can track your application's overall status, including allotment, under IPOs > Applied on the Rupeezy app — see "How to check the IPO bid and allotment status?"
Things to keep in mind
- This is different from a mandate that never gets approved before the bidding window closes, which can cause the application itself to fail without any allotment — see "What are the reasons for HNI IPO application failure?"
- It's also different from your mandate status merely looking stuck on Rupeezy before allotment — see "Why is the IPO mandate status not updated on Rupeezy?"