What is IPO Allotment?
After an IPO subscription closes, the company and its registrar determine how many shares each applicant receives. This process is called allotment. Since most IPOs are oversubscribed, not everyone who applies gets shares.
Investor Categories
SEBI divides IPO applicants into three categories, each with a reserved quota of shares:
| Category | Abbreviation | Quota | Who Qualifies |
|---|---|---|---|
| Retail Individual Investors | RII | 35% | Application ≤ ₹2 lakh |
| Non-Institutional Investors | NII / HNI | 15% | Application > ₹2 lakh (individuals) |
| Qualified Institutional Buyers | QIB | 50% | Mutual funds, banks, insurance, FIIs |
How the Lottery Works (Retail Category)
In the retail category, if the number of applicants exceeds available lots:
- SEBI mandates that each applicant gets at most 1 lot (minimum bid lot).
- The registrar runs a computerised lottery to select which applicants get that 1 lot.
- Remaining applicants get full refunds.
This means applying from multiple accounts (same PAN) does not increase your chances – it leads to rejection. The only legal way to improve odds is to apply from different family members' accounts with different PAN cards.
Allotment Timeline
- Day 0: Subscription closes
- Day 1: Basis of allotment finalised
- Day 5–6: Shares credited to Demat accounts
- Day 6: Refunds unblocked
- Day 6: Listing on NSE/BSE
How to Check Your Allotment Status
You can check allotment status through:
- The registrar's website (Link Intime, KFin Technologies, Bigshare, etc.) – search by PAN or application number
- BSE / NSE websites – under IPO allotment section
- Your broker app – usually shows allotment status automatically
- IPOGaze Allotment Status page – direct links to all registrars
Allotment status is typically available by 6:00 PM on allotment day. If you did not receive shares, your blocked funds are released within 1 business day.