How do you manage money kept aside for IPO?

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21

@milannakum @Pradumya

Let us say I have:
30k in Savings account (MAB requirement)
15L in linked FD (@ say 6.6% interest)

I apply for bHNI IPO (>10L)

And I get IPO allotment of 2L rupees.

So:

Step 1 - 30k gets deducted from Savings account.
Step 2 - 1.7 L needs to be deducted from linked FD. But in what manner?

Case 1:
Q1) Will it break whole linked FD and return whole 10L back to Savings account and then deduct 1.7Lakh?
Q2) What will be interest that I get on this? Full 6.6% for tenure FD was not broken? Or just interst as per savings account?

Case 2:
Q1) Will it deduct only 1.7L from linked FD and rest continue to get FD interest?
Q2) What will be interest that I will get on 1.7L rupees that got broken from FD? Full 6.6% for tenure FD was not broken? Or just interst as per savings account?

Step 3 - I sell IPO and add 2L money back to my savings account
Q1) For case 2 above, will it add 1.7L back to Linked FD?

Thank you in advance for your answers.

22

Just curious, while applying for an IPO ( ASBA ) will the linked FD amont be counted or need to have the sufficient free balance in account .