IPO Allotment Explained

Reservation is the portion of the issue set aside for categories such as QIB, NII, retail, employee or eligible shareholder applicants. Allotment is the final distribution of shares among valid applicants within those categories.

The process first seeks to give the minimum bid lot to as many valid retail applicants as possible, subject to the shares available. When valid applicants exceed the number of minimum-lot allotments possible, computerized draw-of-lots principles are used under the basis of allotment.

In a heavily oversubscribed retail category where only one minimum lot can be distributed per successful applicant, a larger bid does not necessarily improve the probability of receiving that minimum lot. Rules depend on the issue and final basis of allotment.

NII allotment follows the applicable proportionate-allotment framework within its subcategories, subject to minimum application size, valid demand and rounding rules. It is different from the retail draw-of-lots mechanism.

It is the exchange-approved document explaining category demand, valid applications, allocation ratios and the method used to distribute shares. It is the most useful document for understanding the final allotment outcome.

Use the registrar's official allotment page or the relevant exchange facility. Enter only the identifiers requested by the official site, such as PAN or application number, and avoid links from unsolicited messages.

IPO allotment is not generally first-come, first-served. In an oversubscribed category, applying on the first day does not give priority over an otherwise valid application submitted before the deadline.

The bank should unblock the unallotted amount according to the issue timeline after finalization of allotment. Operational delays can occur; applicants should first check the mandate and bank status, then contact the bank or intermediary using official channels.