Understanding IPO Allotment Status

An Initial Public Offering (IPO) is the process where a private company offers shares to the public for the first time. One of the most anticipated moments after applying for an IPO is checking the allotment status. This tells you whether you have been allocated any shares of the company.

How IPO Allotment Works

When an IPO is oversubscribed (meaning the demand for shares exceeds the number of shares offered), not everyone who applies receives an allotment. The allotment process is generally based on a lottery system, aiming for fair distribution among eligible applicants. The regulatory body, like SEBI in India, sets guidelines for this process.

Depending on the IPO, there might be reserved quotas for different investor categories like retail investors, high-net-worth individuals (HNIs), and institutional investors. The allotment ratios will differ across these categories. Retail investors often have a higher chance of getting allotted shares, although this is not guaranteed.

Checking Your IPO Allotment Status

There are primarily two ways to check your IPO allotment status:

• Registrar’s Website: The registrar is an entity appointed by the company to manage the IPO process, including the allotment and refund process. You can typically find the registrar’s name in the IPO prospectus. Visit the registrar’s website and look for a section specifically designed for checking IPO allotment status. You’ll need to enter details like your PAN card number, application number, or DP ID/Client ID.
• BSE/NSE Website (If Applicable): Some exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE) provide facilities to check the allotment status of IPOs listed on their platform. You can visit their website and use your application number and PAN to check the status.

Interpreting Your Allotment Status

The allotment status will generally display one of the following messages:

• Allotted: Congratulations! You have been allocated shares of the IPO. The allocated shares will be credited to your Demat account a day or two before the listing date.
• Not Allotted: Unfortunately, you have not been allocated any shares in the IPO. The application money blocked in your account will be released within a few days.
• Status Under Process/Holding: The allotment is still under process. You should check again later. It’s rare, but sometimes there might be delays.

What Happens After Allotment?

If you are allotted shares, they will be credited to your Demat account. You can then decide whether to hold the shares for the long term or sell them on the listing day. If you are not allotted shares, the blocked funds will be released back to your bank account, and you can look for other investment opportunities.

Remember to check the listing date, as this is the day the shares will be available for trading on the stock exchanges. You can then monitor the stock’s performance and make informed decisions based on your investment strategy.