What is IPO Allotment?

IPO allotment is the process of assigning shares to applicants after the IPO subscription period closes. SEBI mandates a fair and transparent allotment process for all IPOs in India.

When Does Allotment Happen?

IPO allotment happens approximately 6 days after the IPO closes. The timeline is:

Day 1-3: IPO open for subscription
Day 4: IPO closes
Day 6: Allotment date
Day 7-8: Refund of blocked amount for unsuccessful applicants
Day 8-9: Shares credited to Demat account
Day 10: IPO lists on stock exchange

How Does Allotment Work?

Retail Category (RII) Allotment

For retail investors, SEBI follows a lottery system when IPO is oversubscribed:

Undersubscribed (less than 1x): All applicants get full allotment
Oversubscribed (more than 1x but less than number of retail applicants): Each applicant gets exactly 1 lot through lottery. Extra applications are rejected.
Heavily oversubscribed: Computerized lottery decides who gets 1 lot. Chances reduce as oversubscription increases.

Example:
If retail portion receives 10x subscription:
Out of every 10 applicants, only 1 gets allotment
Applying for more lots does NOT increase your chances of allotment
But applying from more accounts (family members) increases overall chances

QIB Category Allotment

Qualified Institutional Buyers get allotment on proportionate basis. If QIB portion is 2x subscribed, each QIB gets 50% of what they applied for.

NII Category Allotment

Non Institutional Investors also get proportionate allotment above ₹10 lakh applications. Below ₹10 lakh NII applications follow lottery like retail.

How to Check IPO Allotment Status?

Method 1 — BSE Website
Go to bseindia.com → Investors → Application Status → Enter PAN → Select IPO → Submit

Method 2 — NSE Website
Go to nseindia.com → Market Data → IPO → Allotment Status → Enter details

Method 3 — KFintech (Registrar)
Go to ipoallotment.kfintech.com → Select IPO → Enter PAN or Application Number

Method 4 — Link Intime (Registrar)
Go to linkintime.co.in → IPO Allotment → Select IPO → Enter details

Method 5 — Through Broker App
Check your broker app → IPO section → Application Status

What Happens if You Get Allotment?

Shares are credited to your Demat account 1-2 days before listing. You can see them in your Demat holdings. On listing day you can sell them at market price or hold for long term.

What Happens if You Don’t Get Allotment?

The blocked amount in your bank account is unblocked and released within 1-2 days after allotment. No money is deducted. You can use this money for other investments.

Tips to Increase Allotment Chances

Apply from Multiple Accounts: Apply from spouse, parents, and children accounts. Each PAN gets a separate chance in the lottery.

Apply for Minimum Lots: Applying for more lots does not help in retail category. Apply for minimum 1 lot from maximum accounts.

Apply on Day 1: Apply as early as possible. Last day applications sometimes face technical issues.

Use Cut-Off Price: Always apply at cut-off price to ensure your application is not rejected due to price.

Avoid Multiple Applications: Never apply twice from the same PAN. Duplicate applications are rejected.

Maintain Sufficient Balance: Make sure you have enough balance throughout the subscription period.