How Can I Cancel My HNI Application?

Last Updated: 3 Sep 2025

Withdrawing an IPO application is a common investor dilemma among HNIs. Many wonder how to cancel HNI IPO application. While individual investors enjoy the ability to cancel their bids, HNIs cannot cancel their applications after making them. This tends to place HNIs in a bind if they happen to want to modify their IPO bid later. Continue reading to learn about IPO cancellation rules for HNIs, modification guidelines, and the reasons behind such SEBI rules.

Can HNI Investors Withdraw their IPO Application?

IPOs (Initial Public Offerings) enable companies to mobilise funds by offering shares to the public. HNIs (High Networth Individuals) are those investors who apply for large ticket sizes, typically over ₹2 lakhs in IPOs. Once an HNI has submitted their IPO application, a key question that arises is – can HNI withdraw IPO application if they change their mind?

The answer, in short, is NO. SEBI rules don’t permit HNIs and other big investors to withdraw their IPO bids after making them. But small investors are allowed to retract their IPO application at any time when the issue is open for offer.

This may seem unjust, but there is sense behind this rule. Let’s examine it in detail.

The Need for an IPO Withdrawal Facility

Investors often apply for IPOs with the expectation of securing shares at the offer price. However, market sentiment can shift quickly during the bidding period, influencing their investment decisions. An IPO withdrawal facility gives them the flexibility to revise their choice based on updated market signals and valuation perspectives.

• Investors apply for IPOs to get shares at the IPO price.
• During the bidding period, they track grey market premiums and other demand indicators.
• If the premiums fall much lower than expected, investors may reconsider their decision.
• The facility lets investors, especially retailers, cancel their bids if their view on the IPO valuation changes.
• Cancelled funds can be used to apply for another upcoming IPO.

Rules for IPO Application Withdrawal

According to SEBI rules, there are different conditions for withdrawing IPO applications depending on the investor category:

1. Retail Investors: Can withdraw/cancel their IPO bid anytime during the IPO bidding window.
2. HNIs: Not able to withdraw or revoke their IPO bid after submission.
3. QIBs: They cannot cancel their IPO bid or withdraw it once submitted.

In short, HNIs and QIBs cannot withdraw their IPO application, while retail investors can do so. Their IPO application, once filed, has to be preserved.

Rationale Behind No Cancellation of IPO Application for HNIs

You already know that the answer to the question “can we cancel HNI IPO application?” is no. Now you must be wondering why it is so. The restriction on HNIs withdrawing their IPO applications is aimed at ensuring stability and fairness in the IPO subscription process. Since high-net-worth individuals typically invest substantial amounts, their actions can heavily influence subscription data and market sentiment. By disallowing bid withdrawal and cancellations, SEBI aims to prevent manipulative practices and maintain the integrity of the process.

• Large HNI bids, if cancelled, can significantly distort IPO subscription figures.
• Cancellations make it harder for companies and investment bankers to accurately assess genuine demand.
• Prevents speculative bidding, where investors place large bids just to gauge interest and later withdraw if sentiment weakens.
• Ensures more stable and predictable IPO subscription data.
• Aligns with SEBI’s efforts to protect market integrity for all categories of investors.

Can HNIs Modify their IPO Application?

While HNIs cannot withdraw or cancel their IPO bid, they have the option to modify the application to increase the bid quantity or price. However, HNIs cannot reduce the bid amount below the original application.

For example, if an HNI has applied for ₹5 lakh costs of shares in an IPO, they can modify and increase the application to, say, ₹10 lakh, but cannot reduce the bid to, say, ₹2 lakh. Only upward modification in quantity/price is permitted.

This allows HNIs some flexibility to revise their bids while also ensuring firm and stable bids.

Why are  Retail Investors Allowed to Cancel IPO Bids?

Retail investors can cancel their IPO bids anytime while the issue is still open for bidding under applicable rules. There are a few reasons for this:

1. Retail bid amounts are much smaller compared to HNIs. Hence, cancellation only significantly impacts overall subscription demand.
2. Retail investors need more investment experience compared to HNIs. Allowing cancellation gives them the flexibility to rework bids if needed.
3. To encourage more retail participation, rules need to be simpler without the entire bid amount being irrevocably blocked when a cancel option is not available. 

Therefore, retail investors get some stretch in controlling their bids due to their small ticket sizes and also improve their overall participation.

IPO Application Cancellation Process for Retail Investors

Let us understand how a retail investor, eligible for IPO cancellation, can actually withdraw or delete the share application.

Online Cancellation Process 

• Step 1) Log in to the online platform of the stockbroker through which the IPO application was made.  
• Step 2) Under the IPO section, select the application to be cancelled
• Step 3) Click on the “Cancel/Delete/Withdraw Bid/Application” and confirm the cancellation request 
• Step 4) The intermediary will submit a cancellation request to the stock exchange 
• Step 5) The Investor will receive a notification when cancellation is approved

Offline Cancellation Process

• Step 1) Prepare a cancellation request letter with application details
• Step 2) Submit a signed letter to the intermediary through which the IPO bid was placed 
• Step 3) The Intermediary will cancel the application and inform the stock exchange

Important Points

• Cancellation can be done anytime when the IPO is open for bidding
• On the issue closing date, there could be a timing deadline by the afternoon to accept cancellation requests
• No cancellation charges are imposed on retail investors for cancelled IPO applications
• In case funds were blocked already, they get unblocked on cancellation

Bidding Rules for Different Investor Categories

Along with IPO cancellation & withdrawal, it is also important for investors to know the bidding rules applicable for different categories:

Investor Category	Bid Cancellation Allowed	Bid Modification Allowed
Retail Investors	Yes	Can increase/decrease bid amount
HNIs	No	Can only increase the bid amount
QIBs	No	Can only increase the bid amount

 

Therefore;

• Retail investors have the flexibility to cancel & modify their IPO bids
• HNIs and QIBs cannot withdraw their IPO application once submitted
• HNIs & QIBs can only revise their bids upwards, but not reduce the bid amount

Why Can’t the IPO Bid Be Modified to Downsize?

Many investors may need clarification on why HNIs and QIBs cannot reduce their IPO application while modifying the bid. 

SEBI has applied this regulation to:

• Provide solid and tight bids from major investors
• Shun speculation, where investors place heavy bids upfront and subsequently begin trimming the bids if they observe scant demand for bidding

Having only upward revision of bid increases commitment and stability to the process of IPO.

No Option for Post-Issue Modification 

The post-issue period is subsequent to the IPO closing for bidding. Investors are curious to know if they can change or withdraw their IPO application once bidding is closed.

It should be mentioned here that, according to regulations, no alterations or cancellations can be made during the post-issue period for any investor category.

The bids are frozen according to the last bid details provided when the issue was open for bidding.

Conclusion

HNIs do not have the option to withdraw or delete their IPO application once submitted, as per SEBI guidelines. Only retail investors can cancel their bids if they wish to. But HNIs can modify and revise their bids upwards, though they keep the bid amount below the original application. 

Cancellation rules bring instability and commitment to IPO bidding, which is why HNIs cannot arbitrarily change their minds post-application. No changes are permitted in any IPO after the issue closes for bidding. 

Frequently Asked Questions

Can HNIs cancel or withdraw their IPO application after submitting it?

No, HNIs cannot cancel or withdraw their IPO application once submitted as per SEBI guidelines. The application gets frozen after submission and HNIs have to subscribe to the shares applied mandatorily.

Why are HNIs not allowed to cancel their IPO bids?

HNIs invest large amounts, so allowing them to withdraw applications can disrupt issue subscriptions. To protect the IPO process, SEBI prohibits HNI cancellation so genuine investor demands can be calculated.

While HNIs can't withdraw bids, can they modify the IPO application?

Yes, HNIs have the option to modify their IPO application to increase the quantity or price of shares applied. However, they cannot reduce the bid amount below the original bid as per regulations.

Can retail investors cancel their IPO applications?

Yes, retail investors can cancel or withdraw their IPO applications at any time when the bidding window is open. This facility is not available to HNIs, and rules are more flexible for retail investors to improve their participation.

Is an investor allowed to make any changes to their IPO application after issue closure?

No, as per guidelines, no investor, including HNI, can make any changes or modifications to their IPO application after the bidding window closes. Their final bid at closure is frozen, and allotment happens on that basis.