What is IPO Allotment?
IPO Allotment is the process where shares are distributed among investors after the subscription window closes. It decides who gets shares, how many are allotted, and ensures fair distribution among different investor categories like Retail, QIB, and HNI.
The allotment process is handled by the company’s registrar (such as Link Intime or KFin Technologies) and strictly follows SEBI regulations. In case of oversubscription, allotment is often done through a lottery system for retail investors.
Key Points about IPO Allotment
- Pro-rata allocation: In case of high demand, shares are allotted proportionally or via lottery system for fair distribution.
- Allotment Date: The official day when allotment results are announced (5–10 days post IPO closure).
- Refunds: Investors who don’t get shares receive their application money refunded within 2–3 working days.
- Credit to Demat: Allotted shares are credited to Demat accounts usually 1–2 days before listing.
- Transparency: Registrars provide online portals for investors to check allotment status directly using PAN or application number.
How to Check IPO Allotment Status?
- Visit the registrar’s official website (e.g., Link Intime, KFinTech).
- Choose IPO name from the dropdown list on allotment status page.
- Enter PAN number, application number, or DP/Client ID.
- Click submit to view allotment result instantly.
- Alternatively, brokers and stock exchanges also provide allotment links.
Frequently Asked Questions
- Q: When is IPO allotment finalized?
A: Usually 5–10 days after IPO closure, based on SEBI guidelines. - Q: What if I don’t receive shares?
A: Your application amount is refunded to your bank account within 2–3 working days. - Q: How long until shares appear in Demat?
A: Allotted shares typically reflect in your Demat 1–2 days before listing. - Q: Is IPO allotment random?
A: For retail investors in oversubscribed IPOs, allotment is decided via computerized lottery. - Q: Can I increase allotment chances?
A: Applying from multiple Demat accounts (family members) increases allotment probability, but applying multiple lots from one account does not.
