IPO Allotment Status
Checking your IPO allotment status is important because it shows you if your IPO application was successful and how many shares you received.... After you apply for an IPO, it usually takes 2-3 days for the allotment status to be updated once the IPO closes. Your IPO status check can happen through stock exchange websites like BSE and NSE, registrar websites or your demat account.(+)
IPO allotment is a process where companies decide how many shares each investor gets after an IPO closes. When you apply for an IPO, you're not guaranteed to get shares. The company looks at all applications and divides the available shares among investors based on certain rules.
When an IPO gets more applications than available shares, the company uses a system to allocate shares fairly. The IPO allotment status shows whether your application was accepted and tells you exactly how many shares you received.
This information helps you plan your next steps, like preparing for the stock's listing day or making future investment decisions. When an IPO is heavily oversubscribed, companies often use a lottery system or give shares proportionally to ensure everyone gets a fair chance.
IPO Allotment Status Check Using the NSE & BSE Websites
For BSE IPO Allotment:
- Go to the BSE website and click on “Application Status Check”
- Choose "Equity" and select your IPO company from the list
- Enter your application number or PAN number
- Click submit to see your allotment details
For NSE IPO Allotment:
- Visit the NSE website and access “Resources and Tools”
- Select your IPO from the available options
- Enter your application details or PAN number
- Submit to view your IPO Allotment Status
Via Registrar Websites:
IPO registrar companies handle the allotment process for different IPOs:
- Visit registrar websites like Link Intime or KFintech
- Find the "IPO Allotment Status" section
- Choose your specific IPO from the dropdown list
- Enter your application number or PAN details
- Click check to see your share allocation
Check Through Your Demat Account
- Log in to your demat account
- Go to the IPO section in your account dashboard
- Look for "IPO Applications" or "IPO Status"
- Find your recent IPO application
- Check the status column to see your allotment details
| Registrar Name | What Do They Do? | Website Link |
|---|---|---|
| Link Intime India Private Limited | Handle IPO applications and share transfers for major companies | www.linkintime.co.in |
| KFin Technologies Limited | Process IPO allotments and maintain shareholder records | kosmic.kfintech.com |
| Bigshare Services Private Limited | Manage IPO registrations and share allotment services | www.bigshareonline.com |
| Cameo Corporate Services Limited | Provide registrar and share transfer services for IPOs | online.cameoindia.com |
| Skyline Financial Services Private Limited | Handle IPO processes and corporate registry services | www.skylinerta.com |
| Purva Sharegistry India Private Limited | Manage IPO allotments and maintain share registries | www.purvashare.com |
| Maashitla Securities Private Limited | Offer complete financial registry and IPO services | www.maashitla.com |
| Alankit Assignments Limited | Process share transfers and IPO-related documentation | www.alankit.com |
IPO registrars handle the IPO allotment calculation process and publish the results on their websites within 3 working days after the IPO closes.
The IPO allotment calculation follows a systematic approach that prioritises fairness and follows SEBI regulations. When an IPO receives more applications than available shares, the registrar first ensures every eligible applicant gets at least one lot before distributing additional shares.
The calculation process starts by dividing all applications into different categories, such as retail investors, high-net-worth individuals and institutional investors. Each category has a reserved quota of shares, which means retail investors compete only with other retail investors, not with big institutions.
For retail investors, the IPO allotment rules state that if oversubscription is mild, everyone gets a minimum allocation first, then the remaining shares are distributed proportionally. However, when oversubscription is heavy, the registrar conducts a computerised draw where luck determines who receives shares.
The IPO allotment process also considers the bid price that investors submitted. Those who bid at higher prices get priority over those who bid at lower prices. If you bid below the final issue price, you won't receive any shares, regardless of the lottery outcome.
Institutional investors follow different IPO allotment rules where shares are distributed proportionally based on their bid size and price. Institutional investors don't use lottery systems like regular investors do. Instead, they get shares based on how much they bid and how the company values long-term investors.
The entire IPO allotment calculation is documented in a report called "Basis of Allotment" that the registrar publishes after completing the process. This document shows exactly how many people applied, how oversubscribed each category was and what percentage of applicants received shares.
When you invest in an IPO, you don't buy individual shares. Instead, you buy them in bundles called "lots." This system makes the IPO allotment process more organised and easier to manage for both companies and investors.
Overview - Basic IPO Terms You Should Know
Before understanding the IPO allotment process, you need to understand these important terms that determine how shares get distributed.
- Minimum Application: This is the smallest amount of money you can invest in any IPO, usually around ₹15,000. You cannot invest less than this amount, but you can invest more by buying multiple lots.
- Minimum Subscription: This rule protects both companies and investors by setting a minimum number of shares that must be sold for the IPO to succeed. Companies usually set this at 90% of all shares they want to sell.
- Oversubscription: This happens when more people want to buy shares than the company has available. For instance, if an IPO allotment company offers 1,000 lots but receives applications for 2,000 lots, the IPO is oversubscribed by two times.
Example Explanations
Total Number of Bids for Lots < Total Number of Lots Offered
Imagine Company ABC offers 10,000 lots in their IPO, but only 8,000 people apply for these lots. Since there are enough shares for everyone, each person gets exactly what they asked for. If you applied for 5 lots, you received all 5 lots. This situation rarely happens with popular companies, but it does occur with smaller or less-known businesses.
Total Number of Bids for Lots > Total Number of Lots Offered
Now imagine the same Company ABC offers 10,000 lots, but 15,000 people apply. This creates an oversubscription situation where the IPO allotment rules become very important. SEBI requires that every eligible person get at least one lot first.
After giving one lot to as many people as possible, the remaining lots get distributed proportionally among those who applied for more. If there still aren't enough lots for everyone to get even one, then a computerised lottery system decides who gets shares and who doesn't.
Demand Matches Supply
When investor applications exactly match or fall below the available shares, the allotment process becomes straightforward. For instance, if a company offers 1,000 shares and receives applications for exactly 1,000 shares from eligible investors, each applicant gets their complete bid amount. However, the IPO must achieve at least 90% IPO minimum subscription to proceed successfully.
When Demand Exceeds Supply
Oversubscription triggers a lottery-based allotment system managed by the registrar. Consider an IPO offering 5,000 retail shares with a lot size of 100 shares, allowing a maximum of 50 retail allottees. If 200 investors apply, only 50 will receive shares through a computerised lottery.
The process involves six essential steps that guide you from account creation to IPO allotment success.
- Go to the IPO section on the 5paisa app and choose the offering you wish to apply for from the list of ongoing IPOs.
- Enter the lot size and bid price. Selecting the cut-off price can improve your chances of allotment.
- Provide your UPI ID and submit the IPO application.
- Approve the UPI mandate through your UPI app when you receive the notification.
- The application amount will be blocked in your bank account until the allotment is finalized.
- Apply for IPOs on 5paisa—seamlessly, with competitive charges and instant UPI integration!
Getting IPO shares requires understanding the allotment process and checking your status regularly. Remember that most popular IPOs face oversubscription, making allotment depend on luck rather than skill. Companies need an IPO minimum subscription of 90% to proceed successfully.
Always verify your application details, approve payments promptly and check allotment status through official registrar websites. With proper preparation and realistic expectations, IPO investing becomes simpler.
IPO allotment status is received by investors during the allotment procedure. The alerts give details on the allocation procedure and disclose the timeline. It assists investors in making better decisions. The registrar publishes the IPO allotment computation based on the allotment document. Once the allotment is complete, investors can check their IPO allotment by going to the registrar's website (Linkintime, Karvy, for example). IPO investors are also notified by email and SMS about the updated IPO allotment status by BSE, NSE, CDSL, and NSDL.
What is IPO allotment?
What is IPO allotment?
Companies can go public through an Initial Public Offering (IPO), which is the process of selling their shares to investors over a stock exchange. This is how many companies decide to sell their shares because it's a quick and inexpensive way to raise capital. The quantity of shares that are available and that the company currently owns determines how many shares are sold.
To put it briefly, an initial public offering (IPO) allotment divides a company's stock into a specific number of shares that can subsequently be sold to investors. Typically, allocation occurs at the initial public offering.
Investors will be able to view their allotted quantity of stocks, as well as whether they have been assigned, through the IPO allotment status. The business then makes the remaining unsold shares available for purchase by other investors at the conclusion of the allotment period. The shares that are unsold are classified as "restricted" shares. After the restricted shares have been allotted and the corporation has listed them for sale, trading of these shares is prohibited.
Procedure of IPO Allotment of Shares:
The IPO allotment mechanism is determined by the investor category and the IPO subscription levels.
● All investors who have submitted valid applications will get a full allocation in the event that an IPO is undersubscribed in every investor group. For the IPO to be successful, 90% of the total subscriptions must be received.
● With the exception of QIB, the oversubscription may be adjusted with the undersubscribed share of the other category if the IPO is oversubscribed for one category and undersubscribed for another.
● The issuer will distribute shares proportionately according to the investor category or via a lottery system in the event of an oversubscription.
Check IPO Allotment Status
Investors can check the IPO subscription status via the IPO registrar like Link Intime or KFintech.
You can check the IPO Allotment status on BSE by following simple steps:
Step 1: Visit the official website of BSE and click on the 'Status of Issue Application' or use this direct link - https://www.bseindia.com/investors/appli_check.aspx
Step 2: Under the ‘Issue Type’ section, select ‘Equity’
Step 3: Select ‘IPO Company name’ from the dropdown menu
Step 4: Enter details like application number or PAN number.
Steps to Verify the Application Status:
The registrar's website allows users to verify the status of their IPO allotment. Additionally, it can be viewed on the NSE and BSE websites. To check the IPO allotment status, you will need the bid application number or the DPID/Client ID number in addition to the PAN.
IPO Allotment Calculation:
Based on the allocation document, the registrar publishes the IPO allotment calculation. After allocation, investors can verify it by going to the registrar's website.
A document known as the IPO Basis of Allotment is released by the IPO registrar following the completion of the share distribution in accordance with legal requirements. Information about the demand for the IPO stock is provided in this paper.
One important consideration for IPOs that are repeatedly oversubscribed is the allotment ratio. It displays the number of applicants that, out of a given number, will obtain a single batch of shares. In the case of ratio 1:8, for instance, only one applicant out of every eight received a single lot of shares, but ratio value 'FIRM' indicates that all candidates are qualified to get a specific number of shares.
Factors Affecting IPO Allotment:
Here are several factors that affect IPO Allotment:
1. Company's fundamentals: Robust fundamentals have the potential to attract investor curiosity, leading to increased share demand and maybe oversubscribed initial public offerings (IPOs).
2. Retail vs Institutional investors: Retail and institutional investors typically receive a certain percentage of shares from companies. The allocation ratio is based on the combined demand from these two categories.
3. Oversubscription: Oversubscription typically occurs when an IPO has great growth potential, solid fundamentals, and is highly attractive. When an initial public offering (IPO) is oversubscribed, investors frequently rush to apply, which makes the allotment ratio exceedingly competitive.
4. Anchor Investors: The market receives good signals from anchor investors, which may improve the likelihood of receiving IPO allotments.
How Does The Registrar Decide On The Allotment?
The best scenario for an IPO application is one of two things happening. They are listed below:
Case 1: If the total number of bids is smaller than the number of shares that the company is offering, the Registrar does not need to get involved because the desired lot will be awarded to qualified investors.
Case 2: The Registrar must devise a plan to allocate shares when the total number of bids exceeds the number of shares that the firm is offering. Here, they must adhere to the regulations established by SEBI (the Securities and Exchange Board of India), which requires that each application receive at least one.
