IPO Allotment Process in India

IPO ALLOTMENT PROCESS IN INDIA

What is IPO Allotment? IPO Allotment is the process through which shares are distributed to investors after the IPO subscription period ends.

When an IPO is

✔ Fully Subscribed ✔ Oversubscribed ✔ Under-Subscribed The allotment process decides:

Who gets shares How many shares are allotted Refunds (if any)

Categories of IPO Investors IN INDIA, IPO ALLOTMENT IS DIVIDED INTO 3 MAJOR CATEGORIES:

Investment up to ₹2 lakh 35% of total issue reserved RETAIL INDIVIDUAL INVESTORS (RII) NON-INSTITUTIONAL INVESTORS (NII / HNI) QUALIFIED INSTITUTIONAL BUYERS (QIB)

Investment above ₹2 lakh

Mutual funds, banks, and FIIs

15% reserved

50% reserved

Each category has separate allotment rules.

Step-by-Step IPO Allotment Process Here’s how the IPO allotment works 1⃣ IPO closes 2⃣ Registrar collects all applications 3⃣ Total demand calculated 4⃣ Category-wise subscription analyzed 5⃣ Basis of Allotment finalized 6⃣ Shares credited to Demat account 7⃣ Refunds processed for unallotted funds Timeline: Usually 5–7 working days after IPO closing.

How Allotment Happens in Oversubscribed IPO

RETAIL CATEGORY

Lottery system is used Minimum lot allotment first Proportionate allocation (if possible EXAMPLE:

If IPO is subscribed 10x in retail, You may get:

1 lot Or No allotment

📌 Applying for multiple lots does NOT increase allotment chances in lottery-based cases.

What is “Basis of Allotment”? You can check allotment status on:

Basis of Allotment is an official document that explains Total applications received Oversubscription level How shares were distributed Allotment ratio

Registrar website

It is approved by

NSE/BSE website

Stock Exchange (NSE/BSE)

Through your broker

Lead Manager Registrar

Smart IPO Investing – Lares Algotech Guidance IPO allotment is probability-based, not guaranteed.

✔ Check fundamentals ✔ Analyse valuation ✔ Study subscription trends ✔ Avoid hype-driven investing ✔ Plan listing strategy (Hold or Exit?) At Lares Algotech

Research-backed decisions Risk management first Structured capital allocation Not emotion-based IPO chasing

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