How to check IPO Allotment Status

IPO refers to "Initial Public Offerings," wherein a company distributes shares to the public for the first time in an initial public offering. When investors put money into a firm, it allows that company the opportunity to grow and flourish. They are all invested in the same business and stand to gain from the company's success if they own shares.

The current IPO process begins when a firm decides to go public by selling shares to the general public. Though an IPO can be issued for non-urgent reasons, most companies use the capital to finance growth or other strategic endeavors. There are many moving parts to the IPO process, which might be months before it starts.

The allotment of initial public offering shares is one example of such a procedure. Learn more about how to check IPO allotment status using the information provided here.

How to check IPO allotment status

To know your allotment status, you need details like Permanent Account Number (PAN), name, address, email address, and mobile number before bidding on a certain number of shares. For their application to be processed by the system, they must use a fair bid price.

You can visit the website of the two exchanges – NSE and BSE, or the registrar’s website of the issue. Then you type in the name of the company and other details mentioned above, and you will know whether or not you have received the allotment. If you have received the allotment, it will take a couple of days for the shares to show up in your account. 

How is IPO Allotment Calculated?

Those interested in the current IPO offering will soon get paperwork from the issuing business. Potential investors only have a limited time to review these materials. That time is referred to as "book-building" time.

The IPO issuing business can issue more or fewer shares than planned, depending on the number of applications received during the book-building phase. If there isn't enough demand, the IPO may be scrapped altogether. If an insurance company, for instance, doesn't receive enough applications for an initial public offering (IPO), the IPO may be scrapped.

After this is complete, the company issuing the IPO will announce the number of shares available through the IPO listing and the brokerage firms (if any) authorized to sell these shares. The deadline to join the IPO list has passed at this time. 

The process goes into the trading phase once the book-building time ends. You can buy or sell shares through your broker at any point during trading at the price they set.

How to check your IPO allotment status online

If you apply for IPO, you can check your IPO allotment status by following these simple steps:

Step1: Check the IPO status 

Visit the NSE or BSE website to check the allotment status.

Step 2: Choose the type of problem

Select' Equity' as the Issue Type.

Step 3: Insert Your Information 

Please fill out the following fields to view the current standing of your IPO registration. Enter Issue Name, Application No., PAN, and Captcha and submit.

Step 4: Enter Search 

The allotment status of your IPO application can be viewed by clicking the "Submit" button after completing the form.

By following these steps, you will know how to check the IPO application status.

Shares allotted in IPO

A retail investor can submit bids in multiples of the lot size because shares are issued in lots. For example, if the company's lot size is 50, buyers can put bids in increments of 50, such as 100 or 250. If the number of retail investors who submit bid applications is equal to the number of available lots, then each investor must be allocated one lot by SEBI regulations. Any leftovers are divided up fairly. In the event of an oversubscription, IPO allotment status will be determined by a random computer drawing from among the applicants in this pool.

High-Net-Worth individuals get their share of the IPO – if there is an oversubscription in this group, people will be allotted fewer shares than requested. The number of times that shares have been oversubscribed is multiplied by the number of applications for those shares to determine the final allocation. 

Oversubscription by qualified institutional investors causes a reduction in the initial public offering (IPO) allotment distributed to those investors. Thus, for example, institutional investor A, who initially requested 100,000 shares of ABC Company, will now receive only 25,000 shares of ABC because the offering was oversubscribed by a factor of four.

FAQs

Q. Is there anything I can do to increase my odds of getting allocated shares in an initial public offering?

Assuming an initial public offering (IPO) has a price range of $100—$120, the IPO will be priced at $122. Successfully bidding at the IPO's minimum price will boost your chances of being allocated shares. If the initial public offering (IPO) is oversubscribed, all bids were made at or above the IPO's reserve price.

Q. Is it a lottery to get an IPO share?

If there is such a high demand for the property that not even one lot can be given to each applicant, the allotment will be decided by a random drawing. The computerized lottery draw will be fair and random for everyone.

Q. Why getting an IPO allotment is competitive?

Companies receive IPO applications from many investors with the same PAN number. Individuals are limited to a single application in an IPO (per PAN number). Therefore, applications with the same PAN are declined if the company receives several submissions with the same information.