What is IPO allotment status?
IPO allotment status refers to the outcome of your application for shares during the IPO. It indicates whether you were allotted shares from the IPO or not. Since many IPOs are oversubscribed (demand exceeds supply), the allotment process is often done through a lottery or pro-rata system.
How does the IPO allotment process work?
Application: Investors apply for shares during the IPO period through a platform such as a stock broker or directly through the IPO’s designated platform.
Oversubscription:
If the IPO receives more applications than the shares available, the allotment process is applied.
Allotment mechanism:
In an oversubscribed IPO, shares may be allotted through a lottery or proportionately, where the number of shares allotted depends on the number of applicants and the size of their application.
Finalization:
After the allotment process is completed, the final list of allotted shares is made available, and investors will be informed whether they have received the shares they applied for.
How to check your IPO allotment status
To check your IPO allotment status, follow these simple steps:
Visit the IPO registrar’s website:
Every IPO has a registrar, and they handle the allotment process. The registrar’s website will usually publish a list of successful applicants once the allotment process is complete.
Enter your details:
You will usually need to enter your application number, PAN number, or other personal details to access the status of your IPO.
Check your name:
If you have been allotted shares, your name and other details will be listed, along with the number of shares you received.
What to do if you have been allotted shares?
If your application is successful and you receive an allotment, the next steps are:
Check your demat account:
The shares will be credited to your demat account within a few days. Make sure your demat account is active and linked to your IPO application.
Wait for the listing day:
After allotment, the IPO shares will be listed on the stock exchange. You can keep an eye on the performance of the shares on the listing day to decide whether to hold or sell them.
What if you don’t get any shares?
If you are not allotted any shares in the IPO, you will not get any money back, as no funds will be blocked for the transaction. While this can be disappointing, many investors try again in future IPOs, hoping for a better chance of allotment.
Conclusion
The IPO allotment status is an important step in understanding the outcome of your application. Whether you have secured shares or not, it is essential to monitor the situation carefully to take timely action. Always remember, IPOs are an exciting opportunity, but understanding the process and keeping expectations realistic will make the experience more rewarding.
Read More IPO allotment status, IPOs information, IPO GMP, New IPO
