How IPO allotment works

When an IPO closes, the registrar works out who gets shares. If the issue is subscribed more than 1 time, not everyone who applied gets an allotment.

The timeline after the issue closes

Under SEBI's current timeline, shares are allotted and the IPO lists within about three working days after bidding closes (called T+3). The registrar finalises the basis of allotment first, usually within a day or two of the close, and the allotment status becomes visible on the registrar's website.

Applicants who are allotted shares have them credited to their demat account before listing day. For everyone else, the money blocked for the application is released, usually on the same schedule.

Retail applicants: a lottery when oversubscribed

If the retail category is subscribed less than 1 time, most applicants can be allotted what they applied for. If it is subscribed more than 1 time, shares are given out by a computerised draw of lots, and a successful applicant generally receives one lot, the minimum bid.

As a rough guide, if the retail portion is subscribed X times, about 1 in X applicants is allotted a lot. At 10 times, that is about a 10% chance for each application. It is a rough estimate, not a promise, and applying for more lots does not improve your odds in the retail draw.

One application per PAN

Each investor may apply once per category using their own PAN; duplicate applications with the same PAN are rejected. Because the draw is per application, a family where several adults each apply with their own PAN and demat account has several separate chances. Applying through someone else's account without their consent is not something to do.

Applications in the other categories, such as shareholder or employee quotas, are separate from retail and have their own rules.

Other categories

Institutional (QIB) and non-institutional (NII or HNI) applicants are usually allotted in proportion to what they applied for, and the exact method is in the offer document. The categories are explained in the guide on retail, NII and QIB.

What IPO Khata does

IPO Khata looks up the allotment of each family member at the registrar after the issue closes, and emails you the result. It estimates retail odds from the live retail subscription so you know what to expect, and says plainly that it is an estimate.

Information, not investment advice. GMP is an unofficial grey-market indicator; figures come from public sources (InvestorGain) and may be late or wrong. Not registered with or affiliated to SEBI, the exchanges, the registrars or InvestorGain.