IPOs
What is IPO allotment?
Also called: Basis of allotment
Hinglish mein padhein: IPO allotment kya hota hai?
Allotment decides who gets shares in an IPO. When retail demand exceeds supply, lots are allotted by computerised lottery.
Each successful retail applicant usually gets one lot, regardless of how many lots they applied for, when an issue is heavily oversubscribed.
Allotment status can be checked on the registrar's website or the exchange websites; money for unallotted bids is unblocked.
Related terms
- IPO subscriptionSubscription shows how many times the shares on offer have been bid for, by category — QIB, NII and retail.
- Registrar to the issueThe registrar processes IPO applications, finalises the basis of allotment and credits shares to investors' demat accounts.
- ASBA and UPI mandateWith ASBA, the IPO amount is only blocked in your bank account, not debited, until allotment. Retail investors approve the block through a UPI mandate.