Allotment
IPO Allotment Explained
How is IPO allotment decided? Understand basis of allotment, lottery process, refund release and demat share credit.
IPO allotment is the process of assigning shares to applicants after the issue closes. The registrar reconciles valid applications, investor categories and available shares before finalizing the basis of allotment.
What is basis of allotment?
The basis of allotment explains how shares are distributed across valid applicants. If an IPO is undersubscribed in a category, eligible applicants may receive the quantity they applied for. If it is oversubscribed, allocation becomes limited.
Retail lottery in oversubscribed IPOs
For heavily oversubscribed retail categories, allotment usually happens in a way that gives eligible applicants a chance to receive at least one lot. Since available lots are fewer than applicants, many investors receive no shares.
What happens after allotment?
- Allotted investors receive shares in their demat account.
- Non-allotted investors get the blocked amount released.
- Refund or unblock timelines depend on banking and registrar processing.
- Listing happens after share credit and exchange approvals.
How to avoid invalid applications
Use correct PAN, demat details and UPI ID. Avoid duplicate PAN applications. Approve the mandate in time and keep enough balance until allotment is complete.
Frequently Asked Questions
How is IPO allotment decided?
When demand is higher than shares available, retail allotment is usually done through a lottery-based process according to the basis of allotment.
Where can I check IPO allotment status?
You can check through the registrar website, exchange links, broker app or the OpenIPO allotment status page.