IPO Allotment Status

IPO Allotment Status:

Upcoming IPODate of AllotmentIssue Size (₹ Cr)
HP Adhesive IPO22 Dec. 2021125.96 Cr
Data Patterns IPO21 Dec. 2021588.22 Cr
Medplus IPO20 Dec. 20211,398.30 Cr
Metro Brands IPO17 Dec. 20211,367.51 Cr
MapmyIndia IPO16 Dec. 20211,039.61 Cr
Shriram Properties IPO15 Dec. 2021600.00 Cr
Paytm IPO Nov 15, 202118,300.00
SJS Enterprises IPO Nov 10, 2021800.00
PolicyBazaar IPONov 10, 20215,625.00
Fino Payments Bank IPO Nov 9, 20211200.29
Nykaa IPO Nov 8, 20215351.92
Aditya Birla Sun Life AMC LtdOct 6, 20212768.26
Paras Defence IPOSep 28, 2021170.78
Sansera Engineering LimitedSep 21, 20211282.98
Ami Organics LimitedSep 8, 2021569.64
Vijaya Diagnostic Centre LimitedSep 8, 20211895.04
Nuvoco Vistas Corporation LtdAug 17, 20215000.00
CarTrade Tech LimitedAug 17, 20212998.51
Windlas Biotech LimitedAug 11, 2021401.54
Devyani International LimitedAug 11, 20211838.00
Rolex Rings LimitedAug 4, 2021731.00
Glenmark Life Sciences LimitedAug 3, 20211513.60

What is the IPO the Allotment Procedure?

IPO Allotment Status
IPO Allotment Status

An Initial public offering (IPO) is an event of great significance in the development of a registered business. It signifies that the company has grown into a mature, efficient company that has earned enough respect in the marketplace for it to be able to begin soliciting money through the market. For many venture capital-funded companies that are IPO-ready, an IPO is often a part of the list of items they must accomplish to satisfy the desires of their investors by offering an exit.

IPOs are usually conducted on a massive scale and can result in a few modifications to the structure of ownership for a company. With a fresh injection of capital, businesses can expand their operations and make investments in the development of products recruit more skilled employees, and many more. It comes at the expense of a reduction in ownership structure as well as the cost at which stocks trade reflects the confidence that its owners and investors place in its future prospects.

It is a given that if an organization is mature enough to be able to announce an IPO this means that it has weathered numerous storms and has established itself as an industry leader in the industry it is operating in. For these businesses an IPO, the process is met with a lot of media attention and because there are many investors looking to join the crowd.

In the process of an initial public offering, there are instances when there is a gap between the number of shares being floated and the number of bids received. To learn more about how these cases can be handled we must know the IPO allotment process on its own.

The Allotment Process:

  • Before you even start thinking about subscribing up to an IPO You just need to have:
  • Demat Account(necessary to buy shares)
  • Trading account (necessary to use if you plan to sell shares)
  • An amount in your Demat account that is in line with your bid
  • If you have all three then, you’ll be required to start the application procedure. It’s an easy process and takes place in the following order:

Step 1: Start the application

It can be accomplished using offline or online channels, and it is vital that your account has sufficient funds to pay for the bid that you make. Because markets regulators made the “Blocked amount facility’ mandatory for IPOs, your bid will not be taken into consideration in the event that you don’t have the money.

Step 2. Allotment

This is done in a closed environment and can be done in any manner dependent on the number of bids as well as the legitimacy of bids made. It is vital to keep in mind that not all applicants get what they asked for since demand can outstrip supply by a large amount.

Step 3: Approve

In approximately 7 days’ time, the registrar of the IPO closes and confirms the allotment to successful bidders. The IPO allotment status is verified on the official website that is maintained by the registrar. You can also check it on the websites of NSE as well as the BSE. You’ll need the PAN number and the DPID/ClientID number, or the bid application number to check IPO allotment status.
We now know what the allotment procedure looks like, it’s worth looking at the underlying dynamics that govern the allotment process as well as the manner in which fringe cases are handled.

What is the Registrar’s process on the Allotment?

If the process of applying to an IPO is completed it can be one of two things that typically happen:
Once the process of applying to an IPO is complete there are two things that generally happen:

First Case: The total number of bids is greater than the shares that the company has offered.

If this were to happen (and it’s not that often) the registrar will not need to intervene. Anyone who has an acceptable bid will receive the amount they asked for. There is no guarantee that anyone will go home without any shares.

Second Case: Total Number Of Bids >= Shares Offered By Firm

This scenario is more likely to occur and requires some planning by the registrar in order to determine how the allotment is actually carried out. There is a regulation given from India’s regulator of markets, SEBI (Securities and Exchange Board India) which states the requirement that at least a minimum of one lot must be allocated to every person who applies. In this regard, we will use an example to better understand the allotment procedure in greater in-depth.

Let’s say that company A will offer 5,00,000 shares of its stock as part of its IPO with the minimum size of the lot being 50. In accordance with the SEBI directive, the maximum number of investors guaranteed to receive at least one lot is 10,000(5,00,000/50). Therefore 10,000 investors will be able to receive at minimum one lot.

The procedure for allotment differs as per the margin of IPO oversubscription. They are handled in the following way:

  1. Small Margin: When IPO is oversubscribed by small margins, the minimum number of lots (50 in the above example) will be divided among all applicants. The remainder of the shares will be distributed in proportion to investors who have put in more than one bid.
  2. Large Margin: In cases in which shares are sold out by multiple times the initial quantity (like the case with Reliance’s IPO back in 1977) The registrar may resort to allocating shares through a random draw. In these instances, investors whose bids do not get through the draw won’t be allocated any shares.

If you’ve submitted your application to an IPO and did not end up getting shares, two scenarios could have happened:

  • The bid you submitted was invalidated (incorrect Demat  Account number or PAN)
  • Your name did not come up into the draw.
  • The second reason is probably the most popular reason that is applied to 90% of applicants. In all good IPO’s the oversubscription is such that the draw procedure is followed, and every investor doesn’t receive an allotted share or get the full amount.

Other relevant points Concerning IPO Allocation:

  • Shares that are less than the minimum bid quantity can’t be purchased or assigned.
  • A minimum of 1 lot (i.e. 10 shares in this scenario) will be considered the minimum amount that is allowed to be allocated. Allotment of shares that is smaller than the size of the lot is not allowed under SEBI Norms.
  • The number of shares that will be allocated cannot be determined prior to the close of the IPO issue. It’s only when all bids have been received as well as the IPO issue is closed that the bids have been added and the previous procedure is followed.
  • The shares will be received only in Demat mode and will not be received in Physical mode.
  • The entire process of allocation is about 10 working days. If shares aren’t allotted or allocated in a partial way the amount that was paid will be returned.
  • The allotment status of shares in an IPO can be checked online from this link – https://linkintime.co.in/ipo/

In order for the shares to start trading on Stock Exchanges, it normally takes about two weeks from the date of the closure for the IPO issue.
Individual applicants who make bids for shares with a value, not more than. 2. Lakhs are considered to be retail Individual Investors. If an individual makes a bid for shares of more than Rs. 2 Lakhs then his status will be changed from Retail Individual Investor to High Networth Individual (HNI). The procedure mentioned above is only for Retail Investors and not for HNI’s.

It is recommended to make use of the ASBA facility when making an application for shares in an IPO. ASBA is an acronym for Applications supported by block amounts (ASBA) This feature lets you bid on shares in an IPO without the funds being taken out of your account. The amount is taken out only after the shares are allocated. Only the amount that shares were allotted is deducted from the bank. Not the entire value of shares that were applied during the IPO.

(Note: Check IPO Allotment Status by clicking on respective company link)