IPO Investing 101: How to check the IPO allotment status?

According to the definition by Groww, Initial Public Offering (IPO) refers to the process where private companies sell their shares to the public to raise equity capital from the public investors. The process of transforming a privately held company into a public company. 

This process not only creates an opportunity to earn a handsome return on investments but become a stakeholder in a company as well. It is also beneficial for the company, in a way that it allows the company to raise capital from public investors, and facilitates expansion, debt reduction, or other corporate initiatives. 

However, the process has much more than just applying, one must also understand the process of checking IPO allotment status. In today’s article, we will dive into the basics of IPO allotment status, and guide you through the steps to check it.

What is the IPO allotment status?

The IPO allotment process begins once the subscription period concludes. IPO allotment status provides investors with all the details about the number of shares allotted to them in an Initial public offer (IPO). 

The process of IPO allotment depends on the number of shares offered and the bids received from investors. Its rules may vary by investor category (i.e. Retail, NII, QIB). The allotment process is carried out by the IPO registrar in consultation with the designated stock exchange.

Only after the whole process of allotment is over, investors can check their IPO allotment on the websites of NSE, and BSE or visit the official registrar’s website such as Karvy, or Linkintime.

How is IPO allotment done?

For all large-cap IPOs, the whole process of IPO allotment takes a week from the IPO release date. On the other hand, the process for small-cap IPOs can take longer to complete when the subscription does not meet the particular threshold. There are three possible cases of the allotment process:

Under subscription of shares by less than 90% 

In such cases, the IPO gets cancelled and the money received from applicants is returned.

Subscription of more than 90% shares 

Here the applicants get all the lots they applied for, given their application was valid and was accepted.

Oversubscription of shares 

In this case, shares are either allotted on a proportionate basis or on a lottery basis to maintain fairness.

Steps to check IPO allotment status

Ensure a smooth IPO investment journey by following these simple steps to check your allotment status via NSE or BSE, providing clarity on your application's outcome and guiding your next financial moves.

Via NSE

Step 1: Visit the NSE official website- www.nseindia.com.

Step 2: Go to the ‘Invest’ section and click on ‘Check Trade/Bids.’

Step 3: Click on the ‘Click here to Sign Up’ button to register yourself with your PAN number. 

Step 4: Log in using your username, password, and captcha code.

Step 5: A new page will open, check your IPO allotment status. 

Via BSE

Step 1: Visit the BSE official website- www.bseindia.com.

Step 2: Click on the ‘Investors’ button on the menu bar and a new page will open.

Step 3: Now go to the ‘Investor Services’ in the menu and click on ‘Status of Issue Application.’

Step 4: Click on ‘Equity’ under the section ‘Issue Type.’

Step 5: Select the IPO under the ‘Issue Name’ from the drop-down menu.

Step 6: Enter your application number or PAN number.

Step 7: Click on the ‘I am not a Robot’ button to verify yourself. 

Step 8: Click on the ‘Submit’ button.

Conclusion

In the IPO investment journey, understanding how to check IPO allotment status is one of the crucial steps. It not only provides clarity on the outcome of your application but guides your next steps. Be it celebrating the successful allotment, anticipating a refund, or exploring alternative investment opportunities, IPO allotment status remains the most significant step of the entire journey. 

As the IPO market continues to attract investors seeking growth opportunities, staying informed about the allotment process ensures a smoother and more transparent experience. However, remember to always check the official channels and consult with your financial advisor for accurate and up-to-date information regarding IPO allotment.