IPO Allotment Status

What is IPO Allotment Status?

IPO allotment status tells you if you've received shares of an IPO after applying for it. It tells you the number of shares you’ve received in an IPO. Once the company finalises the status allotment of the IPO, you can check it using your PAN, application number, or client ID.

You can check the status of allotment of IPO from your broker's platform, registrar's website, or through the exchange. Tracking allotment status can help you understand the demand for share(s), its likely performance once it gets listed, and can help you make your next move with confidence. IPO application status check also helps you stay updated on your investments.

How to Check IPO Allotment Status Online?

You can check the IPO status through the registrar’s website or through BSE and NSE. Here’s a step-by-step process to find out the status of IPO allotment:

• Registrar’s Website

  1. Visit the official website of the respective registrar
  2. Search on the link for IPO allotment status
  3. Choose the respective IPO and enter either your PAN number, application number, or client ID
  4. Hit on ‘Submit’ or ‘Check status’ to know the IPO application status

• On BSE Website

1. Visit the official website of the Bombay Stock Exchange
2. Click on ‘Status of Issue Application’ under ‘Investor Services’
3. Choose ‘Equity’ as issue type and choose ‘Issue Name’ from the dropdown
4. Enter either your ‘Application Number’ or ‘PAN Number’
5. Click on ‘Search’ to know the status

• On NSE Website

  1. Visit the official website of the National Stock Exchange
  2. Follow the following path: Invest > Resource & Tools > Check Trades/Bids > Verify IPO Bids
  3. Choose company name from dropdown
  4. Enter PAN or application number
  5. Click on ‘Submit’ to know about IPO allotment status check

Procedure for the Allotment of Shares in an IPO

The allotment of shares in an IPO involves several key factors. The IPO registrar, along with the designated stock exchange, determines the allotment based on the number of shares offered and the bids received from various categories of investors, including retail, non-institutional, and qualified institutional bidders.

Only valid applications are considered for allotment, with invalid ones being rejected. Also, applications submitted at or above the cut-off price are allotted shares. Allotment is made within each category of investor according to the percentage determined, and the registrar publishes an allotment basis document outlining the details. Shares are allotted on a pro-rata basis, and in the event of oversubscription, they are allocated through a lottery system.

How is IPO Allotment Calculated?

IPO allotment is calculated based on the lot size applied for. To calculate IPO allotment, you need to determine the lot size and then check the issue size and the subscription rate. If oversubscribed, the allotment gets reduced.

For example, if the subscription is 10X and you've applied for 1000 shares, the chances of receiving allotment get reduced significantly. You may only receive a fraction of the shares or none at all. It also depends on the allocation method used. You get the shares in your Demat account if shares are allotted. If not, your money is refunded to your linked bank account.

Factors Affecting IPO Allotment Chances

• Subscription Rate

A higher subscription rate reduces the chances of allotment. This is because when an IPO gets more bids than required, only a small portion of your application might be successful.

• Investor Category

IPO allotments can vary depending on which category of investor you are, including retail, institutional, or high net worth. Some categories of investors have higher chances of allotment than others.

• Accuracy of Application

The details provided in your application matter. Ensure you provide accurate details, including your name, PAN, Demat account number, and other relevant information. Even small errors could lead to application rejection. Also, applying with the correct minimum lot size as specified enhances allotment chances. Applications with incorrect lot sizes or amounts may get rejected.

Tips for IPO Allotment Success

• Use Multiple Demat Accounts Applying through multiple Demat accounts with unique PAN numbers increases your chances of allotment. When you do so, it increases your chances of receiving at least one allotment. However, ensure that each application has a unique name and PAN.

• Apply for a Single Lot Apply for only one lot, especially in oversubscribed IPOs. In oversubscribed IPOs, applying for a single lot increases your chances of allotment and reduces the likelihood of rejection. SEBI rules ensure a fair allotment for all categories of investors, including retail investors.

• Bid at the Cut-off Price The cut-off price is the final price at which shares are allotted to investors. Bidding at this price improves your chances of receiving an allotment. It shows you are willing to buy shares at the final price set by the company.

Top IPO Registrars in India

For IPO status check, you can visit the website of these top IPO registrars:

• Bigshare Services Pvt Ltd

One of the top IPO registrars in the country, Bigshare Services Pvt Ltd's expertise lies in registry and share transfer services. It also specialises in data management, ensuring secure and efficient processing of large datasets.

• MUFG Intime India Pvt Ltd

A trusted name in IPO registry, MUFG Intime India Pvt Ltd was formerly known as Link Intime India Pvt Ltd. It offers a range of investor services, including public issues, rights issues, bonds, survey list, etc. It has a significant presence in major Indian cities, including New Delhi, Ahmedabad, Kolkata, Chennai, and Bangalore, among others.

• KFin Technologies Ltd

One of India’s top IPO registrars, KFin Technologies Ltd, manages over 330 million investor folios. It serves over 569 AIF schemes and has over four decades of domain expertise as an issuer and an investor service provider.

• Cameo Corporate Services Ltd

This is another top IPO registrar in the country. As a share transfer agent and registrar, Cameo provides registry services to over 600 companies. With over 30 years of services, Cameo serves various prestigious clients, domestic and global.

How Does the Registrar Decide on IPO Allotment?

The IPO registrar plays a vital role in the IPO allotment process. Be it SME IPO allotment status or that of the mainboard, there are two things that generally happen:

• Case 1: The total number of bids is less than the shares offered by the company.
• Case 2: The total number of bids exceeds the shares offered by the company. This is called oversubscription.

In case 1, the registrar doesn’t intervene as eligible investors get the desired lot. However, in the second case, the IPO registrar plays a crucial role. The registrar follows the IPO allotment status regulation set by SEBI that mandates providing a minimum of one lot to every applicant who has applied for the IPO.

For example, if there are 80000 IPO shares and the minimum lot size is 80, at least 10,000 investors will get at least one lot. Also, there could be a small or large over-subscription. In the case of small oversubscription, applicants would initially receive shares of 1 lot.

On the other hand case 2, in the case of large oversubscription, IPO allotment occurs through a lucky draw, as per SEBI’s guidelines. The lucky draw system is in place to ensure fairness. If allotted, the shares will be credited to your Demat account.

How to Apply for an IPO?

You can apply for an IPO easily through Kotak Securities. Open a Demat account with Kotak Securities and follow these steps to apply for an IPO:

• Log in to your Demat account with Kotak Securities to access IPO investments. Next, select the current IPO section

• Enter the number of lots for the IPO you wish to apply for, and enter the price you wish to apply for

• After entering your UPI ID, click submit. This will place your bid with the exchange

• Your UPI app will get a mandate notification to block funds

• Your funds will be blocked once you approve the mandate request on your UPI