Question 1

How can I check if I've received an IPO allotment?

Accepted Answer

You have a few ways to find out if you've been allotted shares in an IPO:
• Check the IPO allotment status page on the iposcanner.ai website. You can find sections for Mainboard IPO Allotment Status and SME IPO Allotment Status.

• You might get an SMS or email from the NSE, BSE, or your depository (like CDSL or NSDL) regarding your allotment status. However, these notifications can sometimes be slow or unreliable.

• Visit the official website of the IPO registrar. They will have a dedicated section for checking allotment status, often separated for Mainboard and SME IPOs.

Question 2

How does IPO allotment work when there's oversubscription?

Accepted Answer

When an IPO is oversubscribed, the allotment process becomes a bit more complex:
• **For Retail Individual Investors (RII) and Non-Institutional Investors (NII):** Each eligible investor should ideally receive at least the minimum bid lot, provided enough shares are available.
 * If the number of applicants is less than the maximum number of possible allottees, each investor first gets the minimum bid lot. Any remaining shares are then allotted on a pro-rata basis (proportionally).
 * If the number of applicants is higher than the maximum number of possible allottees, the allotment is determined through a combination of pro-rata distribution and a draw of lots (a lottery system).

• **For Qualified Institutional Buyers (QIBs) and other reserved categories:** Allotment is typically done on a proportionate basis, meaning shares are distributed according to the size of their application relative to the total demand in that category.

• **For Anchor Investors:** Allotment is made at the discretion of the issuer, in consultation with the lead manager.

The Registrar, in consultation with the designated stock exchanges, finalizes the "basis of allotment."

Question 3

When can I expect my IPO shares or a refund?

Accepted Answer

The company issuing the IPO must complete the refund process within four working days and the share allotment process within five working days after the IPO closes.

For example, if an IPO closes on March 15, 2023:
• Any refunds for non-allotment would be processed by March 21, 2023.

• Shares would be credited to the Demat accounts of successful applicants by March 22, 2023.

Question 4

How can I find out which IPOs have their allotment today?

Accepted Answer

You can visit the IPO allotment status page on the iposcanner.ai website to find details for each IPO, including their allotment schedule. The Chittorgarh app also sends notifications once allotments are released.

Here are the steps to check the allotment status on iposcanner.ai:
• Click on the specific IPO you're interested in.

• Navigate to the "Allotment" tab.

• Click on the green dialogue box for "IPO allotment status," which will take you to the registrar's website.

• On the registrar's site, select the IPO from the dropdown menu.

• Enter one of the following details to check your status:

• PAN Number

• Application Number

• Demat Client ID

• Click "Search."

The website will then show you the details of any shares allotted to you if your application was successful.

Question 5

What does "IPO allotment status" mean?

Accepted Answer

Your IPO allotment status simply tells you whether you have been successfully allocated shares in an Initial Public Offering. This status becomes available once the Registrar, in consultation with the designated stock exchanges, has finalized the "basis of allotment." You can typically check your IPO allotment status on the registrar's website, the exchange's website, or on platforms like iposcanner.ai, which often provide comprehensive IPO details.

Question 6

Where can I check my IPO allotment status on the NSE website?

Accepted Answer

You can find your IPO allotment status on the NSE's Bid Verification and Allotment Details Page.

Here are the steps to check your IPO allotment on NSE:
• Log in using your username and password.

• Select the specific IPO you applied for.

• Verify that your PAN number is displayed correctly.

• Enter your IPO application number.

• Click "Submit."

• The NSE will then show you the details of your bid and allotment in two distinct sections.

Important points to remember:

• The NSE will only display the allotment status for bids that were uploaded through the NSE platform.

• You'll need to create an account with NSE as a one-time registration process if you haven't already.

• The PAN number displayed by NSE is based on the details you provided during your registration.

Question 7

Who is responsible for deciding IPO allotments?

Accepted Answer

The IPO allotment process is finalized by the Registrar, working in consultation with the designated stock exchanges. The allotment decisions are made based on the investor's category and the overall level of subscription for the IPO. The Registrar must strictly adhere to the guidelines for IPO allotment set by SEBI (Securities and Exchange Board of India).

Question 8

How can I increase my chances of getting an IPO allotment?

Accepted Answer

There's no guaranteed way to get an IPO allotment unless the issue is undersubscribed. However, you can improve your chances by following these best practices:
• **Use multiple Demat accounts:** Apply from different Demat accounts belonging to your family and friends.

• **Bid at the cut-off price:** Always apply at the cut-off price or the upper end of the price band. If you bid below the final offer price, your application will be rejected.

• **Apply early:** Once you've decided to apply, do so as early as possible. Avoid waiting until the last day to prevent any last-minute technical issues.

• **Approve your UPI mandate:** Make sure to approve your UPI mandate request promptly. If you don't, your bid will be considered invalid.

• **Apply for smaller quantities:** According to SEBI guidelines, applying for smaller quantities (e.g., just one lot) can increase your odds of receiving at least one lot. Applying for very large quantities in an oversubscribed IPO often leads to allotment based on a lucky draw.

Question 9

Why isn't my IPO allotment status available yet?

Accepted Answer

Your IPO allotment status won't be available until the Registrar has completed and finalized the entire allotment process. If you try to check your status right after applying or immediately after the IPO's closing date, it's likely too early. The IPO allotment is typically finalized within five business days after the offering closes. You should look for the "basis of allotment date" on websites like iposcanner.ai and check your status after that specific date.

Question 10

Why didn't I get an IPO allotment?

Accepted Answer

You might not receive an allotment for several reasons, the most common being heavy oversubscription. When an IPO is heavily oversubscribed, the allotment is often decided through a computerized lottery system.

Beyond oversubscription, here are other reasons you might not get an allotment:
• **Invalid application:** Your application might have contained errors like spelling mistakes, an invalid DP ID, PAN, or UPI ID.

• **Multiple bids:** You submitted multiple applications using the same PAN number.

• **Incorrect bid price:** You placed a bid at a price lower than the final issue price.

• **UPI mandate not approved:** Your UPI mandate request was not approved within the specified deadline.

• **Late application:** If you applied at the very last minute, your bid might not have been successfully uploaded to the exchange.

Question 11

Is it guaranteed that I will get an IPO allotment?

Accepted Answer

No, an IPO allotment is not guaranteed. Whether you receive shares depends on the availability of shares, the level of oversubscription, and your investor category. It's also crucial that you submit a valid application on time.

A valid application typically means:
• All personal details (like Name, DP ID, PAN, UPI ID, and bank account number) are correct.

• Your bid price is either equal to or higher than the final offer price.

• The application was submitted within the deadline, and the IPO application amount was successfully blocked.

Question 12

How does IPO allotment actually work?

Accepted Answer

IPO allotment depends heavily on the investor category and how much the IPO was oversubscribed. • **If an IPO is undersubscribed (not fully subscribed):** Every investor typically receives a full allotment of the shares they applied for. • **If an IPO is oversubscribed:** Allotment is done either through a lottery system or on a pro-rata (proportionate) basis. Here's a breakdown by investor category: | Investor Category | IPO Allotment Method | | --- | --- | | Retail Individual Investor (RII) | If RII applicants > Maximum RII Allottees: Computerized Lottery + Pro-rata basis
If RII applicants < Maximum RII Allottees: Minimum 1 lot to each RII, remaining on a pro-rata basis. | | Non-Institutional Investors (NII) | If NII applicants > Maximum NII Allottees: Computerized Lottery + Pro-rata basis
If NII applicants < Maximum NII Allottees: Minimum bid lot to each NII, remaining on a pro-rata basis. | | Qualified Institutional Buyers (QIB) | Proportionate basis | | Anchor Investors | Discretionary basis (decided by the issuer in consultation with lead managers) | | Employees | Proportionate basis | | Shareholder | Proportionate basis |

Question 13

What factors determine who gets an IPO allotment?

Accepted Answer

IPO allotment is based on several key conditions:
• The overall level of subscription for the IPO.

• The timely submission of your IPO application.

• The total availability of shares.

• Your bidding price being equal to or higher than the final issue price.

Question 14

How can I check my IPO allotment status?

Accepted Answer

You can typically find your IPO allotment information on the registrar's website, the stock exchanges' websites, or on financial platforms like the Chittorgarh website or mobile app.

You should check for your IPO allotment status after the "basis of allotment date." This status usually becomes available about 3 working days after the IPO's closing date. To check, you'll generally need your PAN, DP ID, or IPO application number.

You might also receive an SMS or email from the exchanges or your Depository Participant (DP) informing you of your allotment status. If you've been allotted shares, the websites will display the details of the shares you received. If you weren't successful, the allotment details will usually be blank or explicitly state that no shares were allotted.

Question 15

What happens after IPO allotment is finalized?

Accepted Answer

After IPO allotment, the next steps involve processing refunds, crediting shares to the Demat accounts of successful applicants, and finally, the listing of the shares on the stock exchanges.

The Registrar plays a crucial role:
• They coordinate with banks to process refunds for applications that were not allotted shares or received only a partial allotment.

• They instruct depositories to credit the allotted shares to the Demat accounts of successful applicants.

• They also instruct banks to debit the required amount from the applicants' blocked funds.

Once the shares are listed on the stock exchanges, investors are free to either sell their shares or hold onto them, based on their investment strategy and market analysis.

Here's a typical schedule after IPO allotment:

• **Initiation of refund:** Within four working days of the IPO closure date.

• **Credit of shares to allottees:** Within five working days of the IPO closure date.

• **Listing on exchanges:** Within six working days of the IPO closure date.

Question 16

Why might an IPO allotment fail for an applicant?

Accepted Answer

An IPO allotment can fail for several reasons, including:
• **Heavy oversubscription:** When demand for shares far exceeds the supply.

• **Erroneous IPO application:** Mistakes in your application form, such as incorrect personal details or bank information.

• **Failure to approve UPI mandate:** Not approving the UPI mandate request within the specified deadline, which means the funds for your application were not blocked.

Question 17

What can I do to improve my chances of getting an IPO allotment?

Accepted Answer

To increase your chances of receiving an IPO allotment, consider these good practices:
• **Utilize multiple Demat accounts:** Apply for the IPO using different Demat accounts belonging to your friends and family.

• **Apply at the cut-off price:** Always bid at the cut-off price to ensure your application is considered at the final offer price.

• **Apply early:** Avoid waiting until the last day of subscription, as this can lead to last-minute technical issues or missed applications.

• **Confirm payment:** Ensure your payment was successful and that the IPO application amount has been blocked in your account.

• **Review your application:** Carefully check your application for any errors before submitting it.

• **Apply for smaller quantities:** Applying for fewer lots can sometimes increase your probability of getting at least a partial allotment, especially in heavily oversubscribed IPOs.

Question 18

When can I sell my shares after an IPO allotment?

Accepted Answer

You are free to sell the shares allotted to you in an IPO at any time on or after the listing date. The decision to hold or sell your shares on the listing day is entirely up to you as an investor.

• **If the listing price is higher than the issue price:** You might choose to sell your shares to book profits, or you could hold them if you anticipate further price increases.

• **If the stock market price is below the issue price:** You might decide to hold onto your shares, hoping for prices to recover and rise in the future before selling.

Question 19

When is IPO allotment typically completed?

Accepted Answer

The IPO allotment process is usually completed within five working days after the offer closes. The "basis of allotment" is generally finalized after three business days from the issue closure.

For instance, if an IPO closes on April 6, 2023, the share allotment would typically be completed by April 17, 2023. Please note that trading holidays, bank holidays, and weekends are not counted as working days when calculating these dates.

You can always find the detailed IPO schedule for each IPO on iposcanner.ai.

Question 20

Can you explain the IPO allotment process?

Accepted Answer

The IPO allotment process involves distributing shares to investors who applied for them, based on the total number of shares available.

• **If an IPO is undersubscribed:** All investors who applied typically receive a full allotment of shares.

• **If an IPO is oversubscribed:** The allotment method depends on the investor category and the subscription level, usually involving either a proportionate basis or a lottery system.

Here are some important points about the allotment process:

• Only valid, error-free applications submitted at the cut-off price (or a price higher than the issue price) will be considered for allocation.

• Your bid won't be uploaded to the exchange until the application amount is successfully blocked in your bank account. For UPI applications, it's crucial to approve the UPI mandate within the specified cut-off period.

• For Retail Individual Investors (RII) and Non-Institutional Investors (NII):

• If the number of applicants is less than the maximum number of possible allottees, each RII/NII will receive the minimum bid lot. Any remaining shares will then be allotted on a proportionate basis.

• If the number of applicants exceeds the maximum number of possible allottees, the allocation will be determined by drawing lots (a lottery system).

• Allocations to Qualified Institutional Buyers (QIBs) and any other reserved categories are generally made on a pro-rata basis.

• If one category (excluding QIBs) is undersubscribed, the unallocated shares may be adjusted by the surplus from another category.

• The "basis of allocation" is typically finalized within three working days after the issue closes.

• Shares are credited to the Demat accounts of successful allottees within five business days of the issue's closing.

Question 21

When is the best time to check my IPO allotment status?

Accepted Answer

You can typically check your IPO allotment status 3-4 business days after the IPO has closed. Investors should look for the official "allotment date" in the IPO schedule.

For example, if the basis of allotment date for Sah Polymers Limited was January 9, 2023, the allotment status would usually become available by the end of January 9th or on January 10th. The process of crediting shares to the Demat accounts of successful applicants would then be completed around January 11th.

Question 22

Is IPO allotment a random process?

Accepted Answer

IPO allotment becomes random for Retail Individual Investors (RII) and Non-Institutional Investors (NII) when the number of applicants is greater than the total number of allottees who can receive the minimum bid lot.

To clarify, the maximum number of possible allottees is calculated by dividing the total shares reserved for a specific category (RII or NII) by the minimum lot size for that category.

For example, if an IPO has an issue lot size of 25 shares and 400,000 shares are offered to a particular category, the maximum number of investors who could receive at least one lot would be 16,000 (400,000 / 25). However, if 20,000 investors apply, it's impossible to give 25 shares to everyone. In this scenario, the allocation is made randomly using a computerized lottery system.

For Qualified Institutional Buyers (QIBs), however, allotment is typically done on a proportionate basis, not randomly.

Question 23

Is getting an IPO allotment purely based on luck?

Accepted Answer

IPO allotment can feel like it's based on luck, especially when the issue is oversubscribed.

According to SEBI guidelines, every retail investor should ideally receive at least one lot of shares, provided there are enough shares available. However, if the number of retail investors applying exceeds the number of investors who can be allotted even one lot, the allotment is then decided through a lottery method. In this computerized lottery, the allocation is random, and indeed, only the "lucky" ones receive shares.

The same principle applies to Non-Institutional Investors (NIIs). Each NII should get the minimum bid lot. If, during oversubscription, the number of NII applicants is less than the number of NII allottees who can receive the minimum lot, they first get one lot, and any remaining shares are allotted pro-rata. But if the number of NII applicants is greater than the number of NII allottees, the allotment is determined using a draw of lots combined with a pro-rata system.

For Qualified Institutional Buyers (QIBs) and other reserved categories, allocation is done on a pro-rata basis. This means that if an investor's applied amount is significantly small compared to the overall oversubscription in their category, they might not receive any allotment.

Question 24

Does every applicant receive an IPO allotment?

Accepted Answer

No, not everyone receives an IPO allotment, especially if the issue is oversubscribed.

• **If an IPO is undersubscribed or only partially subscribed:** In these cases, it's highly likely that everyone who applied will receive an allotment.

• **If an IPO is oversubscribed:** Allotment depends on the level of oversubscription and the investor category.

• According to SEBI guidelines, each Retail Individual Investor (RII) and Non-Institutional Investor (NII) should ideally receive the minimum bid lot, provided enough shares are available. However, if the number of applicants exceeds the number of allottees who can receive the minimum bid lot, the allotment is decided by a draw of lots. In such scenarios, only a subset of applicants will receive shares. If the number of applicants is less than the number of allottees, the allotment is done on a pro-rata basis.

• For Qualified Institutional Buyers (QIBs) and other reserved categories, it's possible that not all investors will receive an allotment if their investment proportion is very small compared to the overall oversubscription in their category.

Question 25

Does the lot size affect IPO allotment?

Accepted Answer

Yes, the lot size definitely matters in an IPO because it's a key factor considered during the share allotment process. It's crucial to apply for an IPO using either the minimum lot size or a multiple of it. Shares are primarily allocated in full lots, and only any remaining or leftover shares might be allocated as individual shares or smaller quantities.

Question 26

Does my IPO allotment depend on my broker?

Accepted Answer

No, your IPO allotment does not depend on your broker. The allotment process is handled by the Registrar.

A broker acts as an intermediary, providing you with the platform to submit your IPO application. Their role in an IPO is simply to forward your bids to the stock exchange.

The Registrar, on the other hand, is responsible for the entire allocation process. They finalize the "basis of allotment" in consultation with the designated exchanges. Once this basis is determined, the Registrar instructs banks to debit the bank accounts of successful allottees and arranges for refunds in cases of non-allotment or partial allotment.

Question 27

Why do I consistently miss out on IPO allotments?

Accepted Answer

If you frequently don't receive an IPO allotment, it could be due to one or more of these reasons:
• **Heavily oversubscribed IPOs:** Many popular IPOs receive overwhelming demand, making it difficult for everyone to get shares.

• **Multiple applications:** Submitting multiple IPO applications using the same PAN or Demat account can lead to all your applications being rejected.

• **Unapproved UPI mandate:** Failing to approve your UPI mandate request within the deadline means your funds aren't blocked, and your application becomes invalid.

• **Incorrect IPO application:** Errors in your application form, such as wrong details or an incorrect bid price, can lead to rejection.

Question 28

What is the "basis of allotment"?

Accepted Answer

The "basis of allotment" is an official document that provides detailed information about how shares were distributed across each investor category in an IPO.

This document typically includes details such as:
• The total number of valid applications received.

• The number of shares applied for by investors, often grouped by the number of lots they applied for.

• The number of equity shares allotted to each successful bidder.

• The ratio of allotment (e.g., 1 share for every X shares applied).

• The total number of shares allotted in the IPO.

Question 29

What is the "basis of allotment date" in an IPO?

Accepted Answer

The "basis of allotment date" in an IPO is the specific day when the Registrar officially publishes the basis of allotment document, after it has been finalized in consultation with the designated stock exchanges. This date typically falls three working days after the IPO closes for subscription. You can usually find the basis of allotment date for each IPO listed on platforms like iposcanner.ai.

Question 30

What are my chances of getting an IPO allotment?

Accepted Answer

Your chances of receiving an IPO allotment are primarily determined by the subscription level of the IPO and your investor category.

Here's how these factors influence allocation:
• **For an undersubscribed IPO:** If the IPO doesn't receive enough applications to fill all available shares, each investor typically receives a full allotment of the shares they applied for.

• **For an oversubscribed IPO (Retail Investors):** Each retail investor aims to receive at least one lot of shares, assuming there are enough shares available to distribute one lot to every applicant. However, if there are too many retail applicants for this to be possible, the allocation is then decided by a draw of lots (a lottery system).

• **For Qualified Institutional Buyers (QIBs) and Non-Institutional Investors (NIIs):** Allotment for these categories is generally made on a proportionate basis, meaning shares are distributed based on the size of their application relative to the total demand in their category.

IPO Allotment Process

IPO Allotment Overview

Understanding IPO Allotment Rules

IPO Allotment Methods

Allocation by Investor Category

1. Retail Investors (RII)

2. Non-Institutional Investors (NII)

3. Qualified Institutional Buyers (QIB)

4. Anchor Investors

5. Employees

6. Shareholders

The Allotment Process

Important Dates and Status Check

Checking Allotment Status

Tips to Improve Allotment Chances

Understanding the Basis of Allotment

Frequently Asked Questions