4-5 days after the IPO closure, the stocks are allotted to successful investors.
The allotment process is long because of too many applications. The registrar of the IPO needs to verify each and every application for its authenticity and correctness. Allotment details, including the number of shares allotted to each investor, are typically made available through stock exchange websites and registrars after the allotment process is completed.
Investors who are not allotted any shares receive a full refund of the application money they submitted during the IPO subscription process.
The allotment process follows certain rules and guidelines set by the Securities and Exchange Board of India (SEBI) to ensure fairness and transparency.
How Shares Are Allotted in an IPO
#1. Proportionate Allotment Method
In this method, each investor is allotted shares in proportion to the number of shares they applied for relative to the total demand.
For example, if you have applied for 1,000 shares, and the IPO was oversubscribed 5 times, then you would be allotted 200 shares (1,000 shares / 5).
You may like to read our report on Upcoming Indian IPOs in 2023-24 to track all information regarding the IPOs.
#2. Lottery System for Allocating Shares
If the demand for shares is exceptionally high, then the company may use a lottery system to determine allotment. In this approach, names are randomly selected, and then the shares are allocated to them.
Note – those who apply for IPO with larger quantities of shares may not receive their full allotment due to oversubscription. In such cases, they may receive a partial allotment, and the excess amount is refunded to them.
There are many ways that you can use to check the allotment status
6 Ways to Check IPO Allotment Status
#1. How to Check IPO Allotment Status by PAN Number
You can check the IPO allotment status using your PAN on the IPO registrar’s website.
You’ll need the following details:
- PAN Card
- IPO Application Number, and
- Demat Account Number or DP Client ID
The IPO registrar processes the allotment and the status becomes available and can be viewed under the specific IPO name to which the investor applied.
Fill in the PAN details and you will get the allotment status.
Here is the list of websites of common registrars associated with IPOs in India
- Link Intime Registrar
- Integrated India
BSE, NSE, CDSL, and NSDL also send information about the IPO allotment status through email and SMS notifications to all applicants.
#2. How to Check IPO Allotment Status on BSE
This is possible only if your stockbroker or bank has uploaded the applications on BSE’s book-building software – iBBS.
For all the IPO bids that are uploaded on the BSE iBBS platform, a bid ID is generated against each bid.
To verify the application status, you need to enter an application number or the PAN and select the specific issue name that you wish to check.
The process to verify the application status is straightforward
- Visit the BSE website at www.bseindia.com.
- Navigate to the “Investor Services” section and select “Application Status Check.”
- Choose the relevant issue name from the list provided.
- Enter the correct Application Number and PAN Number (as entered in the Application Form).
After submitting the valid information, the system will provide the application status details in the prescribed format.
#3. How to Check IPO Allotment Status on NSE
Again this is possible only if your stockbroker or bank has uploaded the applications on NSE’s book-building software.
The bid details uploaded by the stockbroker or the bank will be accessible on T+1 day (where T is the date of bid receipt on the NSE platform).
NSE exchange will furnish Allotment information, as soon as it is provided by the registrar of the issue.
You have to wait till then.
To check IPO allotment status on NSE you need to complete a one-time registration by providing your PAN details.
Once registered, you can view the bid details associated with their registered PAN number.
You will also receive an email notification from NSE regarding your IPO application and allotment details.
#4. How to Check IPO Allotment Status in Zerodha
Zerodha doesn’t provide the facility to check the IPO allotment status in the Zerodha Kite dashboard.
You can check the IPO allotment status on the registrar’s website like Link Intime, or Karvy.
You can also check your IPO issue status on NSE and BSE portals or the below-mentioned additional two indirect methods.
But the allotment details will be apparent the next day of the Basis of Allotment.
#5. How to Check IPO Allotment Status in Demat
Registrars to the IPO are required to credit the shares to successful IPO investors the next day. This means, if successful you will be able to see the shares in your demat account.
- Contact Your Broker or Log In to Your Demat Account or Trading Account
- Verify if the IPO shares have been credited to your Demat account
- If you have received the allotment, the credited shares will be visible in your Demat account
#6. How to Check IPO Allotment Status in Bank Account
Before registrars credit shares into your demat account, they transfer the blocked amount from your bank account. So you will indirectly know if you have been allotted the shares or not.
- Log in to your Bank Account from which you applied for the IPO
- Navigate to the “Balance” or “Account Summary” section
- If you have been allotted shares, the corresponding amount will be debited from your account.
In case, you did not receive the allotment, the blocked amount will be released, and your account balance will reflect the full amount.
In case you want to cancel the IPO application then doing it before the allotment is the last chance. Once the allotment is done, then you can sell the stocks only after listing.
You can check your IPO allotment status by using any of the methods discussed above.
The easiest way is to visit the website of the registrar or stock exchange (such as NSE or BSE)
To check the IPO allotment status, you typically need your application number, PAN (Permanent Account Number), or both.
These details are mentioned on the IPO application or acknowledgment slip provided by your broker or bank.
Yes, you can check the IPO allotment status on the official website of the stock exchange where the IPO is listed, such as NSE (National Stock Exchange) or BSE (Bombay Stock Exchange).
The IPO allotment status is usually announced 4-5 days after the IPO subscription period closes. The exact timeline may vary depending on the IPO and the registrar.
Typically, allotment status is available within 7-10 days from the IPO closing date.
If you cannot find the IPO allotment status on the exchange’s website, you can check the registrar’s website or check your demat or your bank account.
“Oversubscription” occurs when the demand for shares in an IPO exceeds the number of shares available for allotment.
In such cases, the shares are allocated to investors through a proportionate allotment or lottery system, depending on the IPO’s rules.
If you are not allotted any shares in the IPO, the refund of your application money will be processed and credited back to your bank account within a few days after the IPO allotment status is announced.
Yes, you can check the IPO allotment status offline by calling the registrar’s customer support helpline or visiting the registrar’s office. The registrar’s contact details are usually provided in the IPO prospectus.
If you are allotted only a partial number of shares in the IPO, the remaining amount of money that was blocked during the application (known as the “refund order”) will be released, and you will receive the refund in your bank account.
Yes, you can check the IPO allotment status for past IPOs on the stock exchange’s or registrar’s website archives.
But allotment status for closed IPOs may not be available on the official websites after a 7 to 10-day period.
After checking the IPO allotment status and receiving the shares, you should ensure that the allotted shares are credited to your Demat account.
If you plan to hold the shares, keep track of the company’s performance and market conditions. If you wish to sell the shares, you can do so through the stock exchange once the shares are listed for trading.