For both businesses trying to raise money and investors hoping to take advantage of the potential for expansion of a new publicly traded company, an Initial Public Offering (IPO) is an exciting financial event. The allocation phase of the IPO process—where shares are allocated to investors who have applied for them—is among the most crucial phases.
Knowing the allocation status of an IPO helps you to find whether you have received the shares you applied for if you have taken part in one. We will explore in this post the present method of verifying IPO allotment status, its workings, and how to follow your application status in real time.
Allotment for an IPO?
Usually at a defined price range, an IPO is launched when a firm offers its shares to the public for the first time. Investors apply for these shares either stating a price they are ready to pay or bidding for a particular quantity of shares. The allocation process— wherein the business distributes the shares to the investors—comes next once the IPO subscription period finishes.
Should the IPO be oversubscribed—that is, demand exceeds the available shares—the company might have to distribute shares pro-rately, or occasionally via a lottery method. This means that, particularly if they bid for shares during a very competitive IPO, investors could not always acquire the whole amount of shares they applied for.
How is allocating an IPO?
Usually, the allotment procedure consists in the following stages:
Investors apply for the IPO either straight through the exchange systems or via a brokerage company. The application form has specifics including price band and share count.
The IPO becomes oversubscribed if the volume of applications surpasses the share availability. This follows to the following stage of allotment, whereupon shares will be distributed either proportionately or via a lottery.
Once the final allocation is decided upon, the business, together with the registrar, verifies which investors will get the shares and in what amounts.
Investors who were not assigned shares will get back-off of the money they paid into demat accounts. Those given shares will find these shown on their demat accounts.
How can one check their current IPO allotment status?
Examining your allotment status is crucial following an IPO application. You can confirm your IPO allotment status in numerous ways; the procedure has been simplified over years to make it faster and more open.
Here are the most often used techniques to find your IPO allotment status:
- Inquire on NSE or BSE Websites
Most IPOs are listed on two main Indian markets, the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). These sites both offer a means to view the state of IPO allocation.
See either the BSE or NSE’s official website.
Click on “IPO Allotment Status,” looking for the IPO part or the “Equity” option.
Enter your application number or PAN (Permanent Account Number) together with further asked information.
You will be able to view your allocation status—whether or not you have received the shares—after turning in the information.
- Web page of the Registrar
Every IPO features a specific registrar assigned to manage application and allocation procedures. Among common IPO registraries are Link Intime, KFIN Technologies, and others. Additionally available on the registrar’s website will be a means to monitor IPO allotment status.
To find out your situation:
See the official website of the registrar.
Usually found under “Current IPOs,” or equivalent, look for the section on IPO allotment status.
To get your allocation status, enter your application number or PAN.
Should you be assigned shares, it will show the number; should not be so, it will show the refund procedure.
Among the registraries and their connections are a few:
KFIN Technologies – www.kfintech.com
Link Intime – www.linkintime.co.in 3. Check using Email Alerts or SMS.
Once the allocation process finishes, many IPOs notify investors by SMS or email. These updates will let you know whether you have been assigned shares—and, if so, how many. Should you have not received shares, you will be informed regarding the refund procedure.
Should you not have an alert, it would be advisable to check the BSE/NSE or registrar’s website as certain alerts might not show up right away.
The shares are credited to the demat account of the investors who were allocated once the IPO allotment process is complete. Should you have a demat account, log in to see whether your account holdings show the IPO shares.
Log in using your demat account—through your bank or depository participant.
Go to the part displaying your possessions.
Look for the shares you applied for in an IPO. Your IPO allocation is verified whether they have been credited.
- Brokerage Sites
Should you apply using a trading platform or internet broker, they could also offer a means to monitor the IPO allotment situation. To find the status of your application, log in using your trading account and go to the IPO area.
Factors Affecting IPO Allotment
A number of elements can affect the likelihood of an allotment:
Highly oversubscribed IPOs could lower the possibility of obtaining a whole allocation. In this instance, the shares are divided either proportionately or lottery-style.
Certain IPOs set aside some shares for qualified institutional buyers (QIBs) or non-institutional investors (NIIs), whereas others mostly assign shares to retail investors.
Investors seeking small-ticket sizes (up to ₹2 lakh) would have better odds of getting allocation in retail categories, particularly if the issuance is not too crowded.
Finish
Examining the IPO allotment status is now easier than it has ever been since several channels let investors confirm if they have got shares. Maintaining current on the procedure is crucial since understanding your allotment status helps you to decide on your investment. Investors today have various ways to quickly monitor their IPO involvement—through BSE/NSE websites, the registrar, SMS, email alerts, or your demat account.
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