When are funds unblocked if the IPO is not allotted?

If you do not receive an IPO allotment, the blocked funds will be automatically unblocked. This usually happens on or after the allotment date, but the exact time depends on your bank’s processing time.
 

Here’s how it works:

  • Most banks release the funds immediately after the allotment process is completed.
     
  • Some banks may hold the funds until the UPI mandate expires, which is typically a few days after the IPO allotment date.
     
  • If the funds are not unblocked even after the mandate expiry date, you may need to contact your bank and request a manual release.
     

Tip: If you are facing delays, check your bank statement to confirm if the amount is still blocked. If so, raise a complaint with your bank.