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IPO Allotments 😍

  • Thread starter Thread starter SJM
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    ipo
which bank to use for sweep in fd?
HDFC Savings Account
I have an HDFC savings account. I have a sweep-in mandate, and some balance is always in a few sweep-in FDs. So, the total available balance for transactions is a combination of savings balance + sweep-in FD balance (in a few sweep-in FDs).

My Experience
I have applied for a few IPOs in the recent past (HDBFS, Anthem, etc) and the lien created was including the sweep-in amounts. So, the IPO bid amount was blocked from a combination of available balance + sweep-in FD balance.

Note
Please do note that till such time the lien is not removed, your balance available for transactions will get reduced by the lien amount.
e.g. if the savings balance is say Rs 100, the sweep-in FD balance is say Rs 50, and the bid amount is say Rs 125, then the lien created will be Rs 125 (Rs 100 from savings + Rs 25 from sweep-in FDs). So, only Rs 25 will be available for transactions till such time the lien is not removed, after catering for the amount of allotment - which generally happens after 2-3 days of full/partial/nil allotment (check actual dates for refunds as mentioned in the IPO). Once the lien is removed, full amount i.e. Rs 150 will be available for transactions.

Hope this helps. 🙂
 
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