Allotment of IPO is the process of giving shares to investors. In case of an IPO, the company sells its stocks to the market. This process is handled by the IPO Registrar. First, the Registrar is in consultation with the Stock Exchange. They all determine the ultimate list of winners. The result is announced 3-4 days following the end of the bidding and you can see the result on the website of the Registrar. Also, IPO allotment BSE / NSE methods are available.
Allotment is a based on the demand. An oversubscribed IPO is an IPO that has more bidders than shares, and some investors do not get any shares in this case. In undersubscribed IPO. Every buyer receives the full amount they asked for.
How to Check Allotment of IPO
Status check informs you if you have won shares. You require PAN number or application number but a Demat account number also works. The status link becomes operational on the official IPO allotment date. Thus, you can use IPO allotment status NSE / BSE or IPO INDEX methods or Stock Broker.
IPO Allotment Status Check Steps
- Go to an IPO Allotment Status Page, such as IPO INDEX, and choose the name of the IPO in the list.
- Click on the IPO Registrar website.
- Select your IPO from the dropdown. Enter the PAN or the application number.
- Press submit to view the number of shares.
The page will display the number of shares in case you are lucky. In case there is no allotment, the page will be blank or display a 0 in certain instances.
IPO Allotment BSE / NSE Methods
- Go to the IPO Allotment BSE / NSE Page.
- Choose the IPO with the Equity option selected.
- Enter the required details, such as PAN/Application number.
- Click on Search/Submit.
IPO Allotment Method: The allotment technique fluctuates depending on the demand. In the undersubscribed IPOs, everyone gets shares. In order to be successful, an IPO must have a minimum of 90 percent of the total interest. A lottery or proportional allocation can be employed when the demand is high. The company selects the system according to the category of investors.
The Basis of Allotment (BOA) is a crucial document indicating the way the shares were divided by the Registrar. It lists the total bids for each category, and the winning ratios are clearly indicated.
Sah Polymers Example: In the case of Sah Polymers, 1,020,000 retail shares were issued with a lot size of 230. Only 4,434 retail buyers could get a lot, and 138,971 applied. The BOA displayed a minimum lot ratio of 3:94, that is, 3 out of 94 applicants were given a lot.
Learn: IPO Investor Categories
IPO Allotment by Investor Category
- Retail Individual Investors (RII)
The system tries to offer a single lot to each Retail Individual Investor (RII). A lot is a fixed group of shares. A lot of mainboard shares would cost approximately 15000; SME shares would cost approximately 10000. The company then divides the total RII shares by the lot size to determine the maximum number of RII allottees. In case the IPO is under-subscribed, all applicants are given the full lot. In a big oversubscription, a lottery is conducted using computers, and winners are given one lot. Under a small over-subscription, all purchasers receive a lot and any remaining share is apportioned pro rata.
Maximum RII Allottees = Total shares for RII / Lot size
- Non-Institutional Investors (NII)
NII is further subdivided into two NII sub groups:
Small NII (sNII) which entails investments between 200,000 and 10,00,000. They get 1/3 of the NII shares.
Big NII (bNII), which includes investments exceeding 10,00,000. bNII is given two-thirds.
The regulations of both sub-groups tend to be the same: every winner receives a minimum bid lot. New SME IPO rules after March 2025 follow this same split. There is no split for older SME IPOs.
- Qualified Institutional Buyers (QIB) and Anchor Investors
QIBs are allocated shares depending on the size of their bids. The initial 5 per cent. share is assigned to mutual funds; the rest is shared with other institutions. When the mutual fund demand is low, excess shares go to other QIBs on a pro-rata basis.
The anchor investors submit their bids prior to the opening of the main IPO. The company and the lead manager pick these buyers. Domestic mutual funds get one-third of this anchor block. These bids are kept in a physical book by the IPO Registrar.
- Employees and Shareholders
Many IPOs also normally award employees special quota up to 200,000 rupees per person. If shares remain then the limit can go to 500,000 rupees. Shareholders also get shares proportionately. You can apply in the shareholder category and another one too. This does not count as a double application. Your bid stays valid in both places.
Rules for Allotment
The IPO Registrar uses stringent regulations for every group of investors, including Retail, NII, and QIB. Applications that are duly filled are taken to the final stage. Applications that contain wrong Demat information or multiple forms from one PAN number.
Investors must bid at the cut-off price or higher. Mainboard IPOs permit bidding at the cut-off price; SME IPOs do not. In case a group possesses excess shares, then the Registrar is allowed to transfer such shares to a different group, in consultation with the Lead Manager. This is not the case with the QIB group; Unsubscribed QIB shares stay within that category only.
SME IPO Process: SME allotments can be less complex than mainboard IPOs. In case the retail group is full, a computer draws lots. For Fixed Price SMEs the retail share count can change. If retail demand is higher than other groups, the retail segment grows larger. The IPO Registrar rounds off the figures to the nearest lot size.
IPO Allotment Chances
No tools can guarantee to provide an allotment. Popular IPOs apply a lottery where every bidder is given an equal opportunity. The probability will depend on the total level of subscription.
Ways to Help Your Luck
- Use different family accounts to apply for one lot each.
- Check the number of subscriptions on the last day before you bid.
- Place your bid prior to 1 p.m. on the last day.
- Say yes to the UPI mandate immediately.
- Type in your PAN and DP ID carefully.
- Look at old Basis of Allotment documents for ideas.
Conclusion
To conclude, this article explains the IPO allotment process. Check the official IPO allotment date for the final status. Accordingly, investors check their allotment status using BSE or NSE websites. An oversubscribed IPO makes getting shares difficult for investors and the lottery system decides the winners among retail applicants. You should ensure correct application details for a valid bid.
What is IPO allotment?
It is the process where the company or the IPO registrar decides how many shares to give to each investor who applied. You might get fewer shares or none at all in case of oversubscription.
How does the IPO allotment work?
The IPO registrar collects all valid applications and checks the total demand. They use a lottery system or a proportionate method to distribute shares fairly in an oversubscribed issue. Check the allotment status of the IPO here on the specified IPO allotment date.
Is IPO allotment based on luck?
- In the Retail category, yes, it is mostly based on a computerised lucky draw when the IPO is oversubscribed.
- For big institutional investors (QIB), it works a bit differently; shares are allotted proportionately.
- Anchor investors have specific lock-in periods for their shares (30-90 days).
How to Check Allotment of IPO?
IPO allotment status NSE / BSE or IPO INDEX methods are available:
- Go to the IPO INDEX page for the specific IPO or use the NSE/BSE portals.
- Select the IPO name from the list.
- Choose to search by PAN Card, Application Number, or Demat Account Number.
- Enter the required details and press ‘Submit’ or ‘Search’. The status will then be displayed.
How to read IPO allotment status?
Check for terms like “Allotted” (you got shares) or “Non-allotted/Rejected” (you didn’t get any). It will also show the number of shares credited to your account.
How to know if an IPO is successful?
An IPO is considered successful if it is fully subscribed or oversubscribed and lists on the stock exchange at a price higher than the issue price (listing gain).
How do I know if I have IPO allotment?
You will receive an SMS/email from the exchange (NSE/BSE) or your bank. You can also check the registrar’s website using your PAN card or Application Number.
Will I get IPO allotment?
There is no guarantee. It depends on how many people applied; if the demand is very high, your name must be picked in the lucky draw.
Who decides IPO allotment?
The Registrar to the Issue manages the process under the guidelines set by SEBI and in consultation with the Stock Exchanges.
Who get IPO allotment?
Any investor who submitted a valid application with the correct bid price and whose name is picked during the computerized allotment process.
What is the process of IPO allotment?
It involves verifying applications, removing duplicates/invalid bids, and then using a lottery system (if oversubscribed) to assign shares to the winners.
How to increase chances of IPO allotment?
- Apply from multiple demat accounts belonging to different family members instead of putting a huge amount into one single account.
- Always bid at the “Cut-off Price.”
How do you get 100% allotment in an IPO?
In an oversubscribed IPO, retail investors can’t guarantee a 100% allotment. They only get a guaranteed allotment if the IPO is undersubscribed or they apply in the “SME IPO” category with a large bid.
What is IPO allotment status?
It is the final result showing whether you have been granted shares in the IPO or if your application was unsuccessful. It could also be partially allotted, rejected, or in process.
Is there a trick for IPO allotment?
IPO allotment does not have any tricks, but applying at the Cut-off price and ensuring your UPI mandate is approved on time are the most important steps.
Why I never get IPO allotment? / Why I don't get IPO allotment?
It is usually because the IPO is heavily oversubscribed (e.g., 50x or 100x), i.e. your chance in the lottery is less. Also, you must not make technical errors in your application.
How can I get IPO allotment?
Your PAN and Bank details must be correct, use the UPI method carefully, and apply early to avoid last-minute server issues.
What to do to get IPO allotment?
Focus on quality IPOs and apply via different family members’ accounts to increase your probability of winning the lucky draw.
Does lot size matter in IPO allotment?
Lot size does not matter for retail investors. Even if you apply for 10 lots in a crowded IPO, you will at most get only 1 lot if you are lucky in the draw.
Does IPO allotment depend on broker?
No, your broker (like Zerodha or Groww) just sends your bid to the exchange. The actual allotment is done by the Registrar, so the broker has no influence.
Can I sell shares immediately after an IPO allotment?
Yes, you can sell them on the “Listing Day” as soon as the market opens for trading.
What is the 30 day rule for IPO?
This usually refers to the “Anchor Investor” lock-in period, where big investors cannot sell their shares for 30 days after the IPO to keep the price stable.
What are common IPO mistakes?
Same PAN for multiple applications, bidding below the Cut-off price, and forgetting to approve the UPI mandate in your banking app.
What is the 7% sell rule in IPO?
This is a strategy used by some traders to sell their shares if the price drops 7% below their buy price to prevent bigger losses.
How to calculate probability of IPO allotment?
Divide the total number of lots available for retail by the total number of retail applications. For example, if it’s 10x oversubscribed, your chance is 1 in 10.
How IPO allotment is done if oversubscription?
SEBI rules say that the registrar must first give at least one lot to as many unique applicants as possible using a lucky draw.
What is basis of allotment?
It is a document published by the registrar that explains how many shares were given to different categories of investors based on the demand.
What is basis of allotment date in IPO?
This is the specific IPO allotment date mentioned in the IPO timetable when the final decision on share distribution is made and announced.
Why IPO allotment failed?
Common reasons include an incorrect UPI ID, mismatched PAN details, or your bank rejecting the fund block request.
When to check IPO allotment status?
You can usually check it late in the evening on the “Basis of Allotment” date mentioned in the IPO schedule.
When will I get the allotment/ refund of shares?
Allotted shares credit in your demat account a day before listing. The blocked money in your bank account is usually released within 24 hours of the allotment if you do not get the shares.
Where to check IPO allotment status in NSE?
Visit the NSE India website’s “Check Equity Allotment Status” page and enter your application number and PAN.
What time IPO allotment is done?
There is no fixed time, but it usually happens late at night (between 9 PM and 12 AM) on the scheduled allotment date.
Why IPO allotment status is not available?
It might be due to a delay at the registrar’s end or high traffic on their website. Try checking again after a few hours or the next morning.
What happens after IPO allotment?
The shares are credited to your demat account, and the company gets listed on the stock exchange for regular trading a day or two later.
After IPO allotment when can I sell?
You can sell your shares on the official listing date at 10:00 AM when the market opens for trading.