IPO Allotment Status

What is IPO allotment?

IPO allotment is the process through which shares are offered to the applicants of an initial public offer. There is a window of share allotment after every IPO subscription period. During this period, the shares are apportioned to investors according to the applied quantity and the demand of the IPO. Allotment determines whether and how many shares each investor shall get. This is either fully or partially allotted, depending on the number of applications and the availability of the shares.

How to check IPO allotment status on IPO Ji?

In IPO Ji website click on the allotment tab in the navigation bar → select the respective IPO from the drop-down list → enter the demat details (if not added initially) → click on "Check Allotment."

In IPO Ji App tap on the allotment tab in the bottom bar → select the respective IPO from the drop-down list → enter the demat details (if not added initially) → click on "Check Allotment."

Procedure of IPO allotment:

The IPO allotment procedure essentially comprises the following steps:

• Subscription Period: Investors apply for shares in the IPO subscription window.
• Application Collection: Applications collected and recorded by the IPO registrar.
• Allocation Process: Shares are allocated based on demand, application size, and allotment rules like pro-rata or lottery.
• Finalization: Allotment is finalized, and the applicants to whom allotment is made are informed.
• Refunds: The amount applied for by unsuccessful applicants is returned.
• Credit of Shares: The number of shares subscribed to by every allottee is credited to their respective demat accounts.

How IPO allotment is calculated?

IPO allotment depends on total demand for the issue and the availability of shares. Based on these factors, a company resorts to methods such as lottery or pro-rata in the case of an oversubscribed IPO. For instance, if an investor applies for a larger number of its shares than allotted, the shares will either be distributed through a random draw or proportionately, depending on the overall subscription and rules of allotment.

Steps to verify application status:

IPO Ji provides an easy interface to check the allotment of the respective IPO, even if you have applied the IPO from any other platform. Other than this, you can check the allotments from the Official Registrar website or BSE/NSE websites. For this, you require a bid application number, DP ID, or PAN card number.

How does a registrar decide upon the allotment?

The registrar makes a decision on IPO allotment by first checking all applications, then judging the mode of allocation depending on demand. In case of an oversubscription, the registrar undertakes either a pro-rata system of allocation or a lottery system to share the available shares among the applicants. A pro-rata method ensures that the shareholding is done based on the amount applied for, while a lottery system picks successful applicants. The objective will be to ensure that everyone gets a fair share while managing excess demand.