In the dynamic world of investments, Initial Public Offerings (IPOs) present lucrative opportunities for investors to become stakeholders in a company’s growth right from the start. IPO allotment is a critical step in this process, determining who gets a piece of the pie. In this article, we will explore what IPO allotment is, the procedure to check IPO allotment status, the steps to verify the application status and the factors affecting IPO allotment.
What is IPO Allotment?
IPO allotment is the process by which shares are allocated to investors who have applied for an upcoming IPO. In simpler terms, it is the distribution of shares among retail investors, institutional investors, and non-institutional investors based on their applications and the demand for shares.
Procedure of IPO Allotment of Shares
Checking the IPO allotment status is a straightforward process. Investors can use various platforms to verify if they have been allotted shares in an IPO. One such platform is the Bombay Stock Exchange (BSE), and here’s a step-by-step guide on how to check IPO allotment status:
Step 1: Visit the official website of BSE and click on the ‘Status of Issue Application’ or use this direct link – BSE IPO Allotment Status.
Step 2: Under the ‘Issue Type’ section, select ‘Equity.’
Step 3: Select the specific ‘IPO Company name’ from the dropdown menu.
Step 4: Enter details such as the application number or PAN number.
Once you’ve entered the required details, the system will display the status of your IPO application, indicating whether shares have been allotted or not.
Steps to Verify the Application Status
Apart from BSE, investors can also check IPO allotment status on the registrar’s website, National Stock Exchange (NSE), and other financial platforms. To verify the application status, you will need either the bid application number or the DPID/Client ID number along with the PAN. Here are the general steps:
Registrar’s Website: Visit the official website of the registrar handling the IPO. Enter the necessary details, and the website will provide information about the allotment status.
NSE and BSE Websites: Both NSE and BSE provide tools to check IPO allotment status. Follow similar steps as mentioned earlier, providing the required details to access the information.
Online Brokers: Some online brokerage platforms also allow investors to check IPO allotment status. Log in to your brokerage account and navigate to the IPO section or allotment status page.
Factors Affecting IPO Allotment
IPO allotment is not a guaranteed process, and several factors can influence the outcome. Here are some key factors to consider:
Subscription Demand: The overall demand for the IPO plays a significant role. If an IPO is oversubscribed, the chances of receiving a full allotment decrease.
Application Size: The number of shares applied for and the amount of money invested can impact the allotment. Larger applications may receive a proportionally higher allotment.
Retail vs. Institutional Allotment: The allocation process varies for retail and institutional investors. Retail investors often have a higher chance of receiving shares compared to institutional investors.
Lottery System: In cases of oversubscription, IPO allotment may follow a lottery system. Investors are randomly selected to receive shares, and others may not be allotted any.
Understanding these factors can help investors manage their expectations and make informed decisions when participating in IPOs.
Conclusion
Checking IPO allotment status is a crucial step for investors eagerly awaiting their share of an upcoming IPO. The process involves a few simple steps, such as visiting the BSE website or the registrar’s site and entering the necessary details. Additionally, factors like subscription demand, application size, and the lottery system can influence the allotment outcome.
In the ever-evolving landscape of financial markets, staying informed about the IPO allotment status ensures that investors are actively involved in the investment process. As more opportunities arise with upcoming IPOs, investors can take advantage of platforms like m.Stock by Mirae Asset, open a free demat account and manage their brokerage accountefficiently to participate in the IPO frenzy and potentially reap the rewards of early-stage investments.
