Check IPO Allotment Status

The IPO allotment status indicates whether your application for the company's initial public offering (IPO) was successful, along with other details. Let us learn more about the allotment status below. 

What is IPO Allotment Status?

The status of allotment of IPO tells you the following: 

• Whether your application for a company’s initial public offering of shares was successful
• The number of shares you received
• Confirmation of whether the shares are in your demat account or a refund is due 

The entire allotment process is managed by the registrar of the IPO, who follows a fair process (sometimes a lottery) to distribute the limited shares on offer. It signals whether your cash (blocked through ASBA) will be used to get you shares in lots or refunded, along with when the shares will hit the demat account before listing. 

Understanding IPO Allotment 

Before you check the allotment status of the IPO, here are some key things that you should understand about the allotment process. 

• Definition: The process by which the company’s shares, offered to the public for the first time, are distributed among the applicants (after the window for subscription closes). 
• Oversubscription: This occurs when the total applications exceed the available shares. It indicates higher demand. For instance, a 10x oversubscription means that 10 times as many shares were sought as were offered. 
• Allotment Categories: There are several categories of allotment for shares in India. Some of them include:

• Retail individual investors: They may apply for shares up to a specific value. 
• High-net-worth individuals (HNIs) or non-institutional investors (NIIs): They are high-value corporate or individual applications that have quotas and may apply for more than retail investors. 
• Qualified institutional buyers (QIBs): These include financial institutions such as insurance companies, FIIs, and MFs. They also have specific quotas, with their shares allocated proportionately. 

• Oversubscription Scenarios: Several scenarios may arise. Some of them include:

• RIIs: The allotment is through a lottery system in case of oversubscription, thereby offering all applicants equal opportunities for a minimum lot size. 
• HNIs/NIIs: Share allotment happens on a pro-rata basis (proportionate to the number of shares that you have applied for). 
• QIBs: They are generally allotted shares proportionately, getting full allotment if the IPO is undersubscribed. 

• Basis of Allotment (BOA) PDF: This official document is released by the registrar, such as KFintech, Link Intime, or Bigshare Services. It talks about the methodology for allotment and shows who received shares. The document is often available for download through PAN. 

How to Check IPO Allotment Status Online

Here’s how you can check the IPO allotment status online -

Check IPO Allotment Status on Registrar Website (KFintech / Link Intime)

The allotment status can be checked on the registrar's website.

• Visit the dedicated IPO status portal of the registrar, such as in.mpms.mufg.com/Initial_Offer/public-issues.html for Link Intime/MUFG.
• Select the IPO
• Enter either your PAN, application number, or DP ID before submitting the details.

The status of your IPO allotment can be accessed then. 

Check IPO Allotment Status on BSE/NSE

You can easily check the IPO allotment status on NSE and BSE. 

Here’s how you can check the NSE IPO allotment status: 

• Visit nseindia.com/products/dynaContent/equities/ipos/ipo_login.jsp
• Choose the symbol from the drop-down choices. 
• Enter the application number, then click Get Data. 

Here’s how you can check the IPO allotment status on BSE: 

• Go to bseindia.com/investors/appli_check.aspx
• Enter the PAN or application number. 
• Click on Search to obtain the necessary details. 

Check IPO Allotment Status Using Your Broker

• You can also check the IPO allotment status on your broker’s portal as well.
• Login to your demat/trading account and then go to the IPO or Order Book section. It may also appear under My Applications for some brokers.
• Find the IPO applied for, and it will show whether you have received an allotment. The status may be Allotted, Not Allotted, or Applied, in these cases.

Check IPO Allotment Status via Bank

Some banks also offer facilities to check IPO allotments. For example, ICICI Bank has a provision where you can visit the IPO Order Book after logging into the ICICI Direct account. You can then check the Shares Allotted column to view the status. 

Other Ways to Check Allotment

The other way to check the IPO allotment status is to wait for the release of the Basis of Allotment (BOA) PDF, containing the vital details of the allotment procedure. 

IPO Allotment Procedure: Step-by-Step Guide

Here is a step-by-step guide to the IPO allotment procedure. 

1. IPO subscription closes: The IPO period concludes (usually 3-7 days), and banks then stop accepting fresh applications, blocking the funds through ASBA. 
2. Exchanges share data with registrars: The stock exchanges, such as the NSE or BSE, then forward all application-related data to the IPO registrars, such as KFintech or Link Intime. 
3. Registrar validates applications: The IPO registrar will then filter out any duplicates with the same PAN, errors, and invalid demat accounts. Only the valid bids will be retained as a result of this process. 
4. Basis of allotment (BOA) is finalised: The applications are then grouped (NIIs, retail, QIBs, etc.). In case of oversubscription, shares are allotted through a lottery or on a pro rata basis, as finalised by the exchange and the registrar. In the event of undersubscription, all applicants will receive the number of shares they requested.
5. Shares credited to Demat: Allotted shares will then be transferred to the demat accounts of successful applicants as per the timeline.
6. Refunds processed: Funds for unallotted applicants or partial allotments will be unblocked and refunded to their bank accounts. 
7. Listing happens: The company's shares are listed on the stock exchange and officially begin trading there. 

How is IPO Allotment Calculated?

Here is a guide to the methodologies for calculating IPO allotments - 

• Proportionate allotment: It is also known as pro rata allotment and is mainly used for QIBs and NIIs when their segments are oversubscribed. They receive shares in proportion to the size of their application. 
• Lottery system in the retail category: Those applying for shares up to a specified limit must participate in the lottery whenever the IPO is oversubscribed. A random lottery system (computer-generated) will choose successful applicants from all the valid applications that have been submitted, giving everyone an equal opportunity.
• Oversubscription rules: When an IPO is oversubscribed, specific rules apply, including the lottery system for retail investors, a pro rata basis for QIBs and NIIs, and so on.
• Lot-wise distribution: Shares in the IPO are not applied for individually; they are allocated to predefined lots. They represent a fixed group of shares, while every IPO has a minimum application size of lots. 
• Minimum allotment criteria (1 lot): A major SEBI regulation for oversubscribed retail IPOs is that the focus should remain on enabling a minimum allotment of at least one lot to as many individual applicants as possible. If that is not possible, a lottery draw is held to select investors who will receive the single lot randomly. The remaining shares may be distributed on a proportionate basis. 

Factors Affecting IPO Allotment

Some of the key factors affecting the IPO allotment process include the following: 

• Oversubscription levels: Whether undersubscribed or oversubscribed 
• Number of applications: This drives the levels of oversubscription
• Investor category: There are quotas for different types of investors, including NIIs, HNIs, RIIs, and QIBs. 
• Technical errors: Allotment is determined after errors are filtered out. These include PAN and UPI mismatches, submitting multiple applications with one PAN, invalid demat accounts, etc. 
• Cut-off price selection: For book builds, choosing the cut-off price (the final, highest price in the band) often increases the chances that an application will be considered valid. 
• Valid bid entries: The application should be error-free to merit consideration. Some common errors include insufficient funds in the linked bank account, bidding below the final issue price, multiple applications with the same PAN, incorrect demat account or PAN information, etc. 
• Timing: It is not a first-come, first-served process. The allotment is a computerised, fair process where timing does not affect the chances. 

Top IPO Registrars in India

Here is a closer look at some of India’s leading IPO registrars. 

• KFin Technologies: 

One of the top registrars in the country, it manages large and mainboard IPOs. The registrar is known for smooth application processing and share allotments, while providing advanced investor data with its tech-based approach.

• Link Intime: 

It is a leading RTA player, handling big-ticket mainboard issues while offering online platforms for allotment status checking, investor support, and refunds. 

• Bigshare Services: 

It is a well-established IPO registrar which is hugely active in SME IPOs. It manages a vast volume of issues while offering extensive data on the portal. 

• Cameo Corporate Services: 

Cameo Corporate Services is a reliable and experienced registrar for multiple SME and mainboard issues. It offers online portals for checking the IPO status and managing investor holdings. 

• MAS Services: 

It is an SEBI-registered RTA that specialises in managing IPOs and investor records, while providing services across domains such as holding management and share transfers. 

How Does the Registrar Decide IPO Allotment?

Here is the methodology for deciding IPO allotment at the registrar’s end. 

• SEBI Guidelines: The Securities and Exchange Board of India (SEBI) has a stringent set of regulations (ICDR Regulations) to ensure a fair IPO allotment process and protect investor interests. Key guidelines pertain to investor categorisation and quotas (at least 35% of the total issue size for RIIs, at least 15% for HNIs or NIIs, or up to 50% for QIBs). There are also rules regarding minimum subscriptions, valid application criteria, etc. 

• Randomised Computerised Process: The registrar manages the allotment process through a randomised computerised system in coordination with stock exchanges. Allotment is through a computerised process for oversubscribed RII categories and on a proportionate basis for oversubscribed QIB or NII categories. 

• Transparency Rules: SEBI mandates complete transparency throughout the entire process. Investors should be able to track the subscription status of each category on the exchange websites. Along with real-time subscription data, there should be public disclosure of the allotment ratios and the number of shares allocated. SEBI has also reduced the listing procedure to T+3 days. 

• Basis of Allotment Document Publication: The process ends with the publication of the BOA document. This is prepared by the registrar in consultation with the designated exchange and lead managers. This is the comprehensive disclosure of all vital IPO data, published on the registrar’s official website and the stock exchanges. 

Tips to Improve Your Chances of IPO Allotment

Here are some tips to enhance your IPO allotment chances: 

• You may try applying with multiple demat accounts that are linked to different PAN numbers. 
• Bid on the higher end if possible, since bidders who can pay the cut-off price are usually preferred first. 
• Check the IPO allotment status for your category on the 1st and 2nd days to gauge market response. If it seems reasonable, you can move forward with the application.

Common Issues With IPO Allotment Status & Fixes

Here are some common IPO allotment status and their fixes. 

• Oversubscription: While the lottery system will be implemented, it's best you apply for one lot, since applying for more will not enhance your chances in the retail category. Try applying through multiple family members' demat accounts (with unique PAN numbers) to boost your lottery chances.
• Invalid application: Double-check all information before submitting (bank account, demat account number, PAN, UPI ID, name spelling, etc.). Your signatures should match the bank's records. 
• Funding/payment problems: This may occur when the UPI mandate is not approved or there are insufficient funds in the account. You should agree to it promptly and ensure that the linked bank account has sufficient funds for the amount to be blocked. 
• Pricing: It may be bidding below the final issue or cut-off price for a book-built IPO. You should always choose the cut-off price option when applying to such IPOs. 
• Duplicate applications: Submit only one application per PAN card to avoid rejection. 
• Timing and technical problems: Don’t wait till the last day; apply early, ideally on the 1st or 2nd day. This helps you avoid last-minute technical glitches due to the rush.

IPO Allotment Refunds

If shares are allotted, they will be credited to your demat account before the listing date. However, if they are not allotted, the application money will be refunded to your bank account. This also applies to partial allotment, i.e. the shares not credited to you will be refunded. The refund process usually takes 3-5 business days from the IPO closing date.