All You Need to Know About IPO Allotments

Initial Public Offerings or IPOs are considered a momentous occasion for any private company. It is a sign that the company has grown, matured and become an effective organisation by commanding goodwill in the market and raising public funds. IPOs pave the way for achieving the wishes of several venture-capital start-ups, like raising funds for expansion or starting a new venture.

IPOs are done at a large scale, and they bring about some management changes within the company. With a fresh infusion of funds, companies expand their operations, invest in product development, hire better talent, and more. This comes at the cost of no ownership and the price at which Stock Trading indicates the trust investors place on the potential. Now, if the company is announcing an IPO, they have faced many storms.

They may be already an established leader in the segment under it. IPOs attract a lot of coverage and fanfare as numerous potential investors join the bandwagon. Before you think about IPO Investments, you need to open a Demat Account or Trading Account and hold an amount corresponding to the bid.

If you have these basics, start the application process. After the IPO closes, the allotment process starts. If there are oversubscriptions, the shares are allotted to applicants either proportionately or on a lottery basis. The merchant bank and the registrar finalise the basis of allotment. The stock exchanges then approve them and are made available on the registrar’s website to the issue.

The issuing company also informs the public through newspaper advertisements that include the issue price and the allotment basis.

IPO allotments

The IPO status takes only a few minutes to get allotted if submitted to the right broker. You can invest in all market categories across India through a single webpage.

How to check allotment status?

Investors can check IPO allotment status on the registrar’s website. Alternatively, visit the website of the stock exchanges and look for the status. You need to keep the PAN or IPO number or Demat Account number handy. The exact steps include:

  • Visit the registrar’s website and locate the IPO status tab
  • Click on it. There you find the recent IPOs
  • Select the IPO you have applied for
  • Here, you have three options where you can search status based on: PAN number, IPO application number, or DP ID/Client ID
  • If you are opting for the PAN number, enter the same
  • You get a captcha that you must enter and hit the submit button

If allotted, see the allotment on the screen.

Other alternatives

See if the IPO amount has got debited from your Bank Account. If yes, you have received the allotment. Also, check your emails and SMS for the IPO allotment. Also, IPO status can be checked through the apps offered by respective brokers. You track your status right from applying to sending a mandate request and know about the allotment.

IPO Investments are profitable if you are aware of the tricks. Select a reputed company for starting the journey successfully. Though multiple agents are available offline and online, do thorough research for a wise decision.

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