8 Reasons for Rejection of IPO:- As you know that in the recent scenario the numbers of IPO applicant has been increased unexpectedly. As a result, there is less chance to receive or allot 10 Kitta shares in the IPO. Even many companies are offering initial public offering of shares, there is less chance to get allotted in share. In the meroshare there are more than 45 Lakhs account which shows the competitiveness to be allotted in shares number.
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| 8 Reasons for Rejection of IPO |
In this situation also at the time of filling application for IPO there are many old and new investors who make lots of mistakes due to which their IPO application are rejected. Today we discuss on same topic that what are the reasons for rejection of IPO.
If you see some companies which offered IPO there are huge numbers of applicants whose applications are rejected. In some companies there are more than 80k applicants rejected while in some 10k and 4k as well.
Top 8 Reasons for IPO Rejection in Nepal and other Countries
You know that in the present context there is less chance to be allotted in IPO but if you make following mistakes you will rejected from getting IPO. We would like to suggest you to never repeat such mistakes in the future while applying for new IPO online through meroshare website or meroshare app.
1. Insufficient Balance
Amount that you have included while applying for IPO of any company does not meet the balance requirement could reject your IPO application form.
For example, you applied application for 30 Kitta and your bank account is having only Rs. 2000 balance available for withdraw purpose. In this case your IPO will be rejected reasoning insufficient balance.
How to Cancel IPO Application Using Meroshare
Also, you need to have extra amount of money for different charges like C-ASBA while applying for IPO. Do not Keep only IPO application money you need to include bank minimum balance amount money, C-ASBA money, ATM charge money, others, etc. Review you amount time and again before applying for new IPO which help you to stay safe from rejection of every IPO.
2. Duplicate Application
Duplication application means you applied for same IPO for more one time from the same person meroshare ID.
Or,
You Know that single person could open 2 (Two) Demat Account but could only apply for one new company IPO from only one DEMAT ID using Meroshare account.
If you apply from two DEMAT ID meroshare will match same details and same citizenship details which ultimately result in rejection of both DEMAT id application rejection.
Also, If you have only one demat account, and you applied for new company IPO but also your application is rejected due to duplication then keep in your mind that some unknown person have your all details information and he/she is using for applying IPO since long time.
In this case, you need to inform about this problem to CDS Clearing Limited immediately. This will definitely solve your issue about IPO rejection Due to Duplication of IPO application.
3. Dormant Bank Account or Freeze Account.
If you have not operated your account for more than 6 months then your account will be inactive which create problem while applying for IPO.
In case of saving account if your account is not operated for more than 3 years then it will be called as dormant account. But in case of Current account there is only 6 months period for your account to be dormant.
Similarly, if your account is not updated by providing KYC form then in this case also you cannot apply for IPO which is called account freeze. So, you need to timely update KYC details.
You need to keep your bank account always active for applying new IPO using meroshare Account online.
4. Applying Local/General Quota
You know that Hydro-power companies issues IPO firstly for local people and later on for General public. If you have applied from the local quota and again you applied from general quota then in this case your application of IPO will be automatically rejected duet to double time application received from local people to general IPO shares.
Also, employees of the issuer company can only apply from employee side and not from general public side otherwise, your application for IPO will be rejected.
5. Applying from Bank and Meroshare
Applicants who have not received their meroshare username, password and CRN number apply IPO through Bank.
But, in this process if applicants get their username, password and CRN number in their Email address then they could apply from meroshare also which result in rejection of IPO.
If you have already applied your IPO through bank for company then do not apply for IPO of same company through meroshare which will prevent you from rejection of IPO application.
If you apply for IPO through bank then you need not apply through meroshare and if you apply IPO through Meroshare then you need not go to bank to apply your IPO.
6. Editing IPO applications in Banking Hours
Many applicants edit their IPO amount after applying, which result in rejection of IPO. We suggest you to be careful while applying for IPO for the first time.
But if you made mistake in the amount even after caring then do not edit your IPO application during Banking hour but you can edit your application details after banking hour is over. This will help you in non-rejection of your IPO after applying.
7. Wrong Bank Account Number
If you apply for share through wrong bank account your IPO application will be rejected which deprive you from share allotted. In this case your application will be rejected showing reason wrong account-Contact Branch which create you problem.
8. Applying IPO on Last Date
You should never apply for IPO in the last date of deadline in this case there is chance of non-verification. If your application is unverified then you know the result is rejection of IPO.
So, it is better to apply for IPO in the first day or second day which get lesser chance to reject due to other reasons also.
Conclusion
If you know any other reasons for the rejection of IPO application you are welcomed to add here below in the comment box we will add it into our content including your name if you are ready. If you want more information about meroshare then stay tuned in the future as well.
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