IPO allotment is the process through which available shares are distributed among applicants after the IPO closes. The registrar finalizes this based on category demand and SEBI rules.
If an IPO is oversubscribed, especially in the retail category, not everyone receives shares. In such cases, many valid retail applications may enter a lottery-based allocation process.
What happens after IPO closes
After bidding ends, invalid bids are filtered out and category-wise demand is calculated. The registrar then prepares the basis of allotment.
Once final allotment is approved, successful applicants receive shares in demat accounts, while unsuccessful applicants see funds unblocked.
Why oversubscribed IPOs use a lottery
If retail demand is much higher than available lots, it is not possible to allot full requested quantity to everyone. In that case, the system tries to distribute at least one lot fairly among the highest possible number of valid applicants.
This is why even a very small retail bid and a larger retail bid may both end with the same practical allotment chance in heavily oversubscribed issues.
How to check allotment status
You can check your status on the registrar website, on NSE or BSE links when available, or through your broker platform.
You usually need PAN, application number, or demat account details to track the result.
- Registrar website
- Exchange website
- Broker app or dashboard