How to check IPO allotment status?

Checking an IPO allotment is like opening a letter from a long-lost friend. With your PAN number, application ID, or DP Client ID, you 'unlock' the envelope. Inside, you might find a confirmation that shares have been allotted — filling you with excitement and plans for the future. Or, you might find a polite decline.

Every IPO application is another letter sent, full of possibilities yet unwritten. Delve deeper to know how to check allotment of IPO status.

How to check the allotment status of an IPO?

To know how to check IPO allotment, here's what you should do. Once you’ve applied for shares during an IPO, you must check whether you’ve been allotted the shares that you applied for.

Steps on how to check IPO allotment status:

The following are the steps to check IPO allotment:

1. Visit the IPO registrar’s website: Go to the website of the registrar handling the IPO.

2. Select the IPO: Find the IPO you applied for from the list of offerings.

3. Enter your details: Provide the necessary details, such as your application number, PAN, or Demat Account number.

4. Use the BSE website: Alternatively, visit the BSE investor portal.

5. Choose 'equity' as the issue type: Select this option to search for your IPO.

6. Select the IPO name: Pick the IPO you applied for from the dropdown menu.

7. Fill in details: Enter PAN and application number to search for the status.

8. Log in to your Internet Banking (for ASBA applicants): If you applied through ASBA, log in to your Internet Banking.

9. Navigate to the ASBA tab: Go to the ASBA section to check your allotment status.

10. Review the status: Check if your bid amount has been debited, confirming successful share allocation.

Now, let's explore how you can verify the status of an IPO application.

How to verify the status of an IPO application?

You can verify your application status through the official website of the IPO. Visit the company's website, navigate to the 'Investor Relations' section, and look for how to check allotment in the IPO tab. Enter your details as requested to view your current application status.

Calculation of IPO allotment

IPO allotment process explained in the following points:

1. Total applications: The company collects all applications during the IPO subscription period.

2. Total shares available: The company defines a fixed number of shares to be distributed to the public.

3. Categorisation: Shares are divided among different categories — retail investors, qualified institutional buyers (QIBs), and non-institutional investors (NIIs).

4. Oversubscription check: If demand exceeds supply (oversubscription), allotment becomes based on a lottery system or a proportionate basis.

5. Retail category: If oversubscribed, small investors are allotted shares through a computerised random draw (lottery).

6. Proportionate allotment: NIIs and QIBs get shares based on the size of their application relative to total demand.

7. Refund and final credit: If you don't get shares or get fewer than you paid for, the excess money is refunded. Allotted shares are credited to your Demat Account.

Axis Bank offers comprehensive Demat Account services that simplify the IPO application and allotment tracking process.

Factors influencing the IPO allotment process

1. Oversubscription: When an IPO receives more applications than available shares, oversubscription occurs, triggering share allocation through either a proportionate (pro-rata) method or a lottery system for retail investors.

2. Investor category: Allocation rules vary across retail, QIBs, and NIIs, affecting chances differently.

3. Application size: Bigger amounts under one valid application (especially for NIIs) can improve chances proportionally.

4. Regulatory guidelines: SEBI rules ensure fair distribution and minimum allotment to small investors.

5. Company and registrar policies: Specific allotment methods or preferences set by the company or registrar can slightly influence outcomes.

6. Demat account details and accuracy: Errors in application details, like incorrect PAN or inactive demat accounts, can lead to rejection, regardless of demand.

Also Read - SME IPO

Process of deciding the IPO allotment

1. Application verification: The registrar checks each application to ensure it’s complete and correct.

2. Processing applications: If everything is in order, the applications are processed according to SEBI rules.

3. Share allotment: Shares are allotted based on demand. If more people apply than there are shares, the shares are distributed accordingly. For retail investors, a random computerised draw may be used to ensure fairness.

4. Share credit: After allotment, the details are sent to the depositories, and shares are credited to the successful applicants' Demat Accounts.

5. Refund process: The registrar starts the refund process for applicants who were not allotted shares or only got part of what they applied for. This completes the IPO refund and share credit process.

Conclusion

Knowing how to check your IPO allotment status is important. The process is easy, with several online options available to check your status. Once you've checked, if you are a successful applicant, the shares will be added to your Demat Account within 2-3 days, while if you were unsuccessful, you will get your refund within a week. It's a good idea to keep track of your application status to make better decisions about your investments.

Disclaimer: This article is intended solely for informational purposes. The views expressed in this article are personal. Axis Bank and/or the author shall not be liable for any direct or indirect loss or liability incurred by the reader arising from reliance on the content herein. Readers are advised to consult a qualified financial advisor before making any financial decisions. Axis Bank does not endorse or guarantee the accuracy of any third-party content or links included in this article.