What is IPO Allotment?
IPO allotment refers to the process by which shares are distributed to investors after the subscription period ends. When an investor applies for shares in an IPO, they might not always receive the number of shares they applied for due to oversubscription. The process of determining the number of shares allotted to each investor is known as IPO allotment. This process ensures fair distribution of shares among the applicants based on the number of shares available and the demand for them.
How to Check IPO Allotment Status?
To check the IPO Allotment Staus Follow These Steps:
Visit the official website of the IPO's registrar.
Navigate to the IPO allotment status page.
Enter your PAN number, Demat ID, or application number.
Click on 'Submit' or 'Check Status' to view your allotment status.
Alternatively, check the allotment status on stock exchange websites like NSE and BSE.
You can also check the allotment status on the bajaj broking website. In the search bar enter the IPO name along with the keyword “allotment” and you will be redirected to a blog highlighting the same.
What are the Factors Involved in Affecting IPO Allotment
Subscription Levels: The demand for shares versus the number of shares available.
Investor Category: Allocation might differ for retail investors, qualified institutional buyers (QIBs), and non-institutional investors (NIIs).
Regulatory Guidelines: SEBI regulations and guidelines impact the allotment process.
Lottery System: In case of oversubscription, shares are often allotted through a lottery system.
Bid Price: The price at which investors bid for the shares may also affect allotment.
Who Decides the IPO Allotment?
The IPO allotment is decided by the company going public in coordination with the IPO's registrar and under the oversight of market regulators like SEBI and the exchanges. The registrar plays a crucial role in the allotment process, ensuring that shares are distributed fairly according to the guidelines and subscription data.
How to Calculate IPO Allotment?
Calculating IPO allotment can be complex, especially in cases of oversubscription. Here are the general steps:
Determine the total number of shares available for allotment.
Categorize investors based on their applications (retail, QIBs, NIIs).
Calculate the proportion of shares to be allotted to each category.
In case of oversubscription, apply a lottery system to allocate shares within the retail category.
Allocate shares to institutional investors based on their bid prices and application size.
Conclusion
Checking the IPO allotment status is a crucial step for investors to know the outcome of their investments. Platforms like Bajaj Broking provide easy access to this information, ensuring transparency and convenience. Understanding the factors involved in IPO allotment and the process can help investors manage their expectations and make informed decisions.