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A Comprehensive Guide on IPO Allotment Process

What is the Allotment Process for an IPO?

How Does The Registrar Decide On the Allotment?

An example is represented in a tabular format below for a better understanding of the above-mentioned statement.

Particulars

Amount

IPO shares

8,00,00

Minimum lot size

80

Maximum number of investors who will get at least one lot (Total number of shares /total number of shares in 1 lot, that is, 8,00,000 ÷ 80)

10,000

As a result, 10,000 investors will definitely get at least one lot.

In addition, there can be different sub-cases. These are as follows:

  • Small Over-subscription: In this case, successful applicants would receive shares of 1 lot initially. Next, the allotment of balance shares occurs evenly.

  • Large Over-subscription: In cases where the over-subscription is massively large, then applicants with successful bidding would not get allotment for even 1 lot of shares. In such circumstances, the IPO allotment process for retail investors or eligible applicants occurs on a lucky draw basis as per the SEBI guideline.

After applying for an IPO, investors may wish to check the IPO allotment status. Read the following section to learn about this in detail.

Where to Check the IPO Allotment Status?

When to Check the IPO Allotment Status?

What Are Major Reasons for IPO Rejection?

FAQs About IPO allotment