10.14What is IPO allotment?
1What is it?
Allotment is when the registrar decides who gets shares. Allotted shares go to your demat; for others the blocked money is released.
2Why does it exist?
When oversubscribed, not everyone gets shares, so allotment is done fairly by rules (lottery for retail).
3Calculation
Retail chance ≈ Lots available ÷ Retail applications (approx.)
- Retail quota = 2 lakh lots; 20 lakh applications.
- Chance ≈ 2 ÷ 20 = 10%.
About a 1 in 10 chance of getting one lot.
4Quick revision
- Registrar decides.
- Lottery for retail when oversubscribed.
- Unblock if not allotted.
5Knowledge check
Q1. Who conducts allotment?Show answer
The registrar to the issue.
Q2. Not allotted: what happens to your money?Show answer
It is unblocked.
Q3. When is allotment finalised?Show answer
T+1 after issue close.