The IPO allotment status is a crucial step in the entire IPO process because it informs investors of whether or not they have received shares in their choice of IPO. The registrar manages the allocation of shares. The largest registrars for main board offerings are KFin Technologies and Link Intime, while Bigshare handles SME IPOs.
There are several ways you can check your IPO allotment status. For example, investors can check their bank accounts to get an idea about allotment status when the registrar and exchange services are unavailable. However, before we proceed, here is a detailed breakdown of IPO and its allotment process.
What is IPO?
A company’s initial public offering (IPO) is a significant event in its journey. It indicates that it has finally developed into a fully-grown organisation with enough market esteem to raise money from the general public by issuing new company shares.
Additionally, when a public company issues more shares following an IPO, it is referred to as a follow-on public offering. Investors become part owners by purchasing the new equity issued by the company during an IPO. Existing owners and shareholders can register a portion of their investment as a profit or use the money generated through an IPO for expansion.
How to Invest in an IPO?
You will need the following before subscribing and investing in an IPO:
- A Demat account (necessary for buying shares)
- A financial account (for selling shares)
- An amount corresponding to your bid in your Demat account
Once you have all of these, you can initiate the application process for an IPO subscription.
Next are allotment and approval:
IPO Allotment Process
After the IPO subscription, all applications are sorted and reviewed during the allotment process. The incomplete IPO applications get rejected. The registrar acts as the intermediary in an IPO and is in charge of allocating and transferring shares. It is also responsible for processing refunds for rejected applications.
The allotment of IPO shares depends on the bids made by individual investors during the IPO allotment process. The allotment process is done via lottery when shares are oversubscribed. It happens when there are more bids than shares available. Further, shares get allotted to your name based on the outcome.
How to Check IPO Allotment Status?
The IPO registrar allots the shares to successful bidders in around 7 days. You can check IPO status on the registrar’s website or the NSE or BSE websites. The following details are required to check the IPO allotment:
- PAN Card (To check IPO Allotment Status using PAN Number)
- Bid application ID for IPO
- The DP Client ID or Demat Account Number
The IPO allotment status should be visible under the IPO selected by the investor. BSE, NSE, CDSL, and NSDL also share information with investors via Email and SMS.
Here are the simple steps to check IPO allotment status:
Step 1: Checking IPO Allotment Status Through NSE
- Visit the NSE website.
- Select “Check Trade/Bids” from the “Invest” column.
- Sign Up to register with your PAN or log in if you are already registered. Alternatively, you can visit the page through this link (no need to follow steps 1 and 2)
- Enter your username and password, followed by captcha verification to log in.
- You can check the status of your IPO bid and allotment on the next page.
Step 2: Checking IPO Allotment Status Through BSE
- Visit the BSE website.
- Select “Equity” from the list of Issue types.
- Choose the IPO listed under the issue name from the drop-down menu.
- Type in your application number.
- Enter your PAN number.
- Click on “I am not a robot”, then click “Submit.”
- You should now see your IPO allotment status on the following screen.
Step 3: Checking IPO Allotment Status on Intime
- Log on to the Intime website and click the IPO allotment link.
- Choose IPO Name from the drop-down menu.
- Choose and enter your PAN Number, Bid Application Number, or DP ID Option.
- Click on “Search.”
- Your IPO Allotment will now be visible on the screen.
Step 4: Checking IPO Allotment Status on KFintech
- Follow this link to the KFintech website.
- To continue, click on any of the given links, i.e., “Link 1,” “Link 2,”. Go back and click on another link if one doesn’t work.
- Choose the IPO.
- Choose one option from Bid Application No., Client ID/DPID, or PAN.
- Type in the details.
- Carefully enter the captcha and click “Submit.”
- The IPO allotment status will now be visible.
Tips to Increase Chances of IPO Allotment
SEBI governs IPO share allotment. As registrars distribute IPOs by a lottery method, there are some things you can do to maximise your chances:
- SEBI has directed to accord all RI applicants shares worth up to Rs 2,00,000. Therefore, do not submit a lot of applications.
- Apply by using several DEMATs linked to different PAN cards.
- Increase your bid to improve your chances. Bidders who pay the cut-off price are preferred.
- Check the IPO allotment status for HNI, QIBs, and the retail category during the first and second days to gauge market reaction. Continue with your application if you get a positive response.
Investors who know the IPO allotment process may better understand its steps and how to improve their chances of getting the shares.
Investors have become more interested in IPOs due to their recent successes. A company lists its shares on the stock exchange within days of allotment. Depending on your level of risk, time horizon, and liquidity requirement, you can either decide to hold the shares or sell them on the day of listing. If you need help with finances, you can always take the help of experts at Piramal Finance to guide you through your financial woes. Visit our website to read more about IPOs and upcoming IPO investment opportunities.