How to Check Allotment of IPO?

IPO allotment status can be checked online through stock exchange platforms, registrar websites, or notifications sent by depositories. After the subscription window closes, the allotment process determines whether and how many shares are allocated to each applicant. Registrars appointed to the IPO publish the allotment details once the allocation is completed. The allotment status helps investors understand the outcome of their application and decide their next course of action. This article explains how to check IPO allotment status online, the information required, factors influencing allotment, common mistakes, and ways to approach IPO applications effectively. 

Methods to Check IPO Allotment Status 

Knowing where and how to check IPO subscription status is crucial, individuals may check the status of their IPO allotment by simply following these avenues: 

Method 1: Through BSE Website 

Investors can verify their allotment status by visiting the BSE official portal. The process involves selecting the equity issue type, choosing the specific IPO from available options, and entering personal details such as application number or PAN. The system displays the allotment status instantly once the registrar completes the allocation process. 

Method 2: Through NSE Website 

The NSE platform offers a similar facility for checking IPO allotment. Investors navigate to the IPO section, select the relevant issue, and provide their application credentials. The interface presents clear information about allocation status and the number of shares allotted. 

Method 3: Through Registrar Websites 

Each IPO has an appointed registrar, such as Link Intime India Private Limited or KFin Technologies Limited. Visiting the registrar's website provides direct access to allotment information. Investors can search using their application number, Demat account details, or PAN to retrieve their specific allotment status. 

Method 4: Through Broker Platform 

Most stockbrokers provide integrated services to check IPO allotment within their trading platforms. Investors can review their holdings section to see if allotted shares have been credited to their Demat account. This method offers convenience, as it consolidates all investment information in one place. 

It’s crucial to know how to check allotment of IPO, further in the article, the documents needed and what factors affect IPO allotment are discussed.  

Documents or Information Required to Check IPO Allotment 

Investors need specific information to verify their allotment status: 

• Application Number: The unique reference number generated when submitting the IPO application 
• PAN (Permanent Account Number): Personal tax identification required for all securities transactions 
• Demat Account Details: Including DP ID and Client ID linked to the IPO application 
• IPO Name: The specific company whose allotment status is being checked 
• Bid Details: Information about the price band and quantity applied for 

Factors Affecting IPO Allotment 

The following are a few variables that impact IPO Allotment: 

• Company Fundamentals - Strong financial performance, robust business models, and proven track records attract substantial investor interest. Companies demonstrating solid fundamentals typically experience higher subscription rates, making the allotment process more competitive. 
• Category-wise Distribution - IPO shares are divided among different investor categories including retail individual investors, high net worth individuals, qualified institutional buyers, and non-institutional investors. Each category has a reserved quota, and allotment within categories depends on the subscription level in that specific segment. 
• Oversubscription Levels - When applications exceed available shares, the IPO becomes oversubscribed. Higher oversubscription ratios result in lower allotment chances as shares must be distributed among a larger pool of applicants through a lottery system for retail investors. 
• Market Sentiment - Prevailing market conditions and investor sentiment during the IPO period influence demand. Favourable market environments and positive analyst recommendations can drive higher subscription rates, affecting individual allotment probabilities. 
• Anchor Investor Participation - Strong participation from anchor investors signals confidence in the company's prospects. This often generates positive momentum and attracts additional retail and institutional interest, potentially increasing overall subscription levels. 

Common Mistakes While Checking IPO Allotment Status  

The following mistakes should be avoided while checking IPO allotment status. 

• Incorrect Application Details: Providing mismatched information across PAN, bank account, and Demat account leads to technical rejections and disqualification from allotment. 
• Multiple Applications from Same PAN: Submitting more than one application using identical PAN details results in rejection of all applications. 
• Insufficient Funds: Not maintaining an adequate balance in the linked bank account causes application failure during fund blocking. 
• Missing Application Deadlines: Failing to submit applications within the specified subscription period eliminates eligibility. 
• Ignoring Cut-off Price Options: Not understanding price band selections and cut-off options may result in bids at non-optimal prices. 
• UPI Mandate Delays: Delaying approval of UPI mandates for ASBA applications can lead to automatic rejection. 

How to Increase Chances of IPO Allotment?

• The Securities and Exchange Board of India mandates fair allocation procedures ensuring equal opportunity for all retail investors. When IPOs receive oversubscription in the retail category, registrars employ a lottery mechanism to distribute available shares. 
• Since all retail applications up to two lakh rupees receive equal treatment, applying with Demat accounts of family members using different PANs can mathematically increase overall chances. Each valid application represents an independent entry in the allotment lottery. 
• Applying at the cut-off price rather than lower price points ensures the application remains valid regardless of final price determination. This approach prevents rejection due to price band adjustments. 
• Monitoring subscription trends across different investor categories during the bidding period provides insights into demand patterns. Strong institutional and high net worth investor interest often indicates positive market reception. 
• Focusing on IPOs with solid fundamentals, reasonable valuations, and strong business prospects improves the quality of investment choices. While allotment depends on lottery for oversubscribed issues, selecting fundamentally sound companies ensures better outcomes when shares are received. 

Disclaimer : All investments are subject to market risks, economic conditions, regulatory changes, and other external factors. Returns are not guaranteed and may vary based on market performance and investment tenure. Investors should assess their risk tolerance and financial objectives, conduct their own research, and consult a qualified financial advisor before making any investment decisions. 

Conclusion

Understanding the factors that influence allocation and avoiding common application errors enhances the overall IPO investment experience. While regulatory frameworks ensure fair distribution, investors can optimise their approach through proper planning and strategic application methods. For a hassle-free experience, individuals have to open a demat account first on a reliable stock trading app. Success in IPO investing ultimately depends on combining efficient application processes with sound fundamental analysis of the companies going public.