For decades, the term “Initial Public Offering” has been a buzzword among investors. The procedure by which a public firm issues new stock to the public is known as an initial public offering (IPO). It is carried out in order to raise capital from public investors.
Before we can even check the allotment of an IPO, it is important to have the following
After having the necessary accounts and the funds to pay for the shares one needs to get down to the process of applying for the shares.
IPO Allotment Status
The allotment status tells you everything you need to know about the quantity of shares allotted to an investor in a public offering (IPO). The registrar of the IPO is in charge of the IPO allotment procedure. The allotment date for an IPO is normally the date on which the status is made public. Once the allotment has been completed, investors can check the status of their IPO by going to the registrar’s website. The BSE, NSE, NSDL, and CDSL also send out emails and SMSes to IPO investors informing them of the revised IPO allotment status.
Every broker’s website today has the facility of showing all the IPO allotment details and the status of the allotment for those who have invested. TradeSmart also offers this facility and youc can check the allotment status in the below steps.
Step 1: Open the TradeSmart website or just click here to directly go to the allotment page.
Step 2: Once you open the above link, you will see a page that looks like the one below.
Step 3: Locate the name of the IPO you had bid for from the list and click on the “View Status” option on the right hand side. You will get a pop up screen that will ask for various details.
Step 4: Fill in all the details required with your PAN and application number and click on “Search”
Step 5: The details of your allotment will flash and you will get a clear status of whether or not the allotment is done or is still pending.
The quantity of shares applied for an IPO and allocated to the investor is indicated by the allotment status.
Allotted – This indicates that all shares applied for have been allotted.
Partially allotted – This means that fewer shares have been allocated than what you applied for; for example, if investors applied for 10 lots of the XYZ IPO, only 6 lots have been allocated, while the remaining four lots have not been done.
Non-allotment – This signifies that the investor has not been assigned any shares. This could happen for a variety of reasons, including: • your application was not chosen in the fortunate draw; • the issue price is higher than your bid; • an error in the PAN or DEMAT account number provided; or • several applications submitted under the same PAN.
Situation 1: When the total bid is less than the shares offered by the company
In this case there is no intervention by the registrar and each one who bid will get the allotted shares.
Situation 2: When the total number of bids is greater than or equal to the number of shares.
In this scenario, the registrar will need to plan out how the allotment is going to take place.SEBI has mandated that every applicant must be given at least one lot.
Depending on the margin by which the IPO is oversubscribed, the allotment process varies.
Investors would get a refund of their application fee before the UPI mandate expires, as per the IPO deadlines, if there is no allocation or only a partial allocation. When you apply for an IPO, your bank places a hold on a sum in your account equal to the bid size, which is debited from your account after the final allotment. Depending on the status of your application, the bank will conduct a full or partial refund, which usually takes one or two days to reach your account.
IPO Allotment is completed within 6 days of IPO subscription closing date, in book building issue.
One way is to bid the maximum if the subscription figures are high as it completely depends on oversubscription. Also put the correct DP ID and client ID details in the application form.
The allotment status of an IPO is available on the website of the registrar. Sometimes, lead managers also publish it on their website.
According to SEBI guidelines, as an investor, you are entitled to receive a Confirmatory Allotment Note (CAN) within 15 days of the closure of the issue in case shares have been allotted. The refund should also be done within 15 days of issue closure.
The IPO allotment status is updated on the registrar’s website. Bidders need to enter the PAN number or IPO allocation number to check the IPO allotment status. The information is also available on the BSE and NSE website. Bidders may also receive an email/SMS notification about the allotment from BSE, NSE, NSDL and CDSL.
Please note that by submitting the above mentioned details, you are authorizing TradeSmart to call and email you and also to send promotional communication even though the contact number may be registered under DND.
Please note that by submitting the above mentioned details, you are authorizing TradeSmart to call and email you and also to send promotional communication even though the contact number may be registered under DND.
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Please note that by submitting the above mentioned details, you are authorizing TradeSmart to call and email you and also to send promotional communication even though the contact number may be registered under DND.