How to Check IPO Allotment Status: A Step-by-Step Guide

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The anticipation of checking whether you have been allotted shares is part of the Initial Public Offering (IPO) investing experience. On the allotment date, you get to know whether you are among the few who have secured shares of the newly listed company.

To start investing in IPOs, open a demat account on Bajaj Markets. You could also use financial news websites or other financial tools to analyse the historical performance of companies. This may help you make an informed decision on which IPOs to subscribe to.

How to Check the IPO Allotment Status

After you have applied to an initial public offering, wait till the registrar confirms the allotment. This information will be available on the registrar’s website. You could check the allotment status on the websites of stock exchanges. This includes the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE).

Use these steps to follow-up on the IPO allotment status on the BSE website:

Visit the official website of the Bombay Stock Exchange
Click on the ‘Status of Issue Application’ under the ‘Investor Services’ category
Choose the ‘Issue Type’ and the ‘Issue Name’
Enter the ‘Application Number’ or ‘PAN Number’
Hit the ‘Search’ button to check the allotment status

How the IPO Allotment Process Works

Investing in an Initial Public Offering could set you up for significant gains. Here is how this process takes shape:

Application

Apply for a company’s IPO online or offline. The Securities and Exchange Board of India (SEBI) has mandated the use of the Application Supported by Blocked Amount (ASBA) to invest in IPOs. This procedure blocks the application amount in your bank account until the allotment process ends. Hence, it's important to maintain sufficient funds when bidding for IPOs.

Allocation

There are usually three categories of investors in an IPO: retail investors, High-Net-Worth individuals (HNIs), and Qualified Institutional Buyers (QIBs). The allotment of shares depends on the category you belong to.

The company allots shares to the first two on a lottery system and pro-rata basis to the third category.

Approval

The registrar will confirm the successful allotment of IPO shares in 7 days.

Factors That Influence the Allotment Status

Once an IPO allotment process is complete, there are two things that could happen:

Number of Bids is Less Than The Total Shares Offered

In this case, the allotment is pretty straightforward. Every investor with a valid application will get a share allotment as requested.

Number of Bids is Equal to or More Than the Total Shares on Offer

In such cases, SEBI mandates that each applicant has to receive at least one lot.

In case of an oversubscription of shares, the shares may be allotted based on a lucky draw. Since this is a computerised process, the allotment will be done impartially.

How Does IPO Oversubscription Benefit Companies

Sometimes, demand for a share could outstrip the available supply. Here are a few benefits of oversubscription of shares for any business offering an IPO:

With higher demand, companies can leverage value by selling the shares to the highest bidder, making a larger profit
Companies with an oversubscribed IPO can raise funds from the market without borrowing from banks or financial institutions
Oversubscription may increase the public’s interest and boost the company's reputation in the market

Companies can decide on a suitable investor in their business venture from a pool of potential investors

Will the money be lost if IPO status is ‘Not Allotted’?

No. As per SEBI regulations, if no shares are allotted, your money will be ‘unblocked’ and refunded within four days.

How many times can you apply for the same IPO?

You can apply for an IPO only once using a particular name, PAN, and demat account. However, in one application, you can raise a maximum of three bids for the IPO issue. These three different price points increase your chances of getting shares allotted.

Is IPO subscription a high-risk investment option?

When you invest in an equity IPO, the listing day can be highly volatile during the initial days of trading. Once the lock-in period of trading ends, the company can bring an additional supply of shares, which can lead to a reduction in prices.

If the company is fairly new, you may not have sufficient information about its past performance. There’s also a possibility that the company may not grow as you hoped for.

What to do if the IPO allotment status is ‘Not Allotted’?

You can wait for your refund, conduct further market research, and apply for similar upcoming IPOs.

How can I check the IPO allotment status online?

You can get to know about the status of the allotment of shares on your registrar’s website. You can also check it on the websites of BSE or NSE.

How can I ensure the allotment of IPOs?

There is no guarantee of allotment in the case of oversubscription. Some investors may apply for the IPO from multiple Demat accounts to enhance their chances of approval. However, too many applications from the same Demat account or PAN could lead to total rejection.