Participating in an Initial Public Offering (IPO) might offer Indian investors a chance to subscribe to the equity of a company before it lists on the stock exchange. While the IPO application process may appear straightforward, the allotment stage often causes uncertainty. Knowing when and how the IPO allotment is declared, along with how to check your IPO allotment status, could help you stay informed about the IPO allotment process.
The IPO allotment process in India follows a structured timeline. It typically unfolds over a span of 6 to 7 working days from the issue closing date. Moreover, the timeline may vary slightly based on market holidays, registrar processes, etc. The Securities and Exchange Board of India (SEBI) has structured this process with the objective of improving efficiency and transparency.
Here’s a general sequence of events that investors may observe:
IPO Subscription Period (T Day): Investors can apply for shares during this window, usually lasting 3-5 working days.
Allotment Finalisation (T+3 or T+4): The registrar finalises the basis of allotment, determining how shares are distributed among applicants.
Refunds/Unblocking of Funds (T+4 or T+5): For applicants who did not receive shares, the blocked funds are unblocked or refunded.
Credit to Demat Account (T+5 or T+6): Allocated shares are credited to investors' demat accounts.
Listing Date (T+6 or T+7): The company's shares are listed on stock exchanges, and trading commences.
Note: "T" denotes the closing date of the IPO subscription.
The registrar generally finalises the allotment within three to four working days. If the issue is oversubscribed, especially in the retail category, the finalisation may take a day longer due to verification and lottery allocation.
Once allotment is finalised, investors may check their IPO allotment status using any of the following methods. Most platforms update the status by the evening of the allotment date; in some cases, the information may go live the next morning.
Registrar's Website
Each IPO is provided with a designated registrar that is responsible for managing the entire allotment process.
Steps to Check:
Visit the registrar's website.
Navigate to the 'IPO Allotment Status' section.
Select the IPO name from the dropdown.
Enter your PAN, application number, or DP ID/client ID.
Click 'Submit' to view your allotment status.
Stock Exchange Websites
Both BSE and NSE provide facilities to check IPO allotment status. For example, you can check listings on BSE at https://www.bseindia.com/investors/appli_check.aspx
Steps:
Visit the BSE allotment status page.
Select 'Equity' and choose the IPO name.
Enter your application number and PAN.
Click 'Search' to view your status.
3rd Party Platforms
Many brokerage platforms allow investors to check their IPO allotment status directly.
Steps:
Log in to your demat account on the brokerage platform.
Navigate to the 'IPO' section.
Select the specific IPO to view your application and allotment details.
For example, Bajaj Markets provides a user-friendly interface to track IPO applications and allotments.
Track IPO applications linked to their demat accounts.
Open demat accounts for future IPO participation.
Access IPO calendars and other issue details.
The registrar of an IPO follows a detailed process governed by SEBI regulations. The IPO allotment process may differ based on investor category and overall subscription levels. Here's how it works:
Retail Individual Investors (RIIs) – Applications of up to ₹2 lakh. If oversubscribed, allotment could be made via lottery.
Non-Institutional Investors (NIIs) – High net-worth applicants above ₹2 lakh. Shares are allotted proportionally.
Qualified Institutional Buyers (QIBs) – Allotment might be finalised post bidding but before listing.
In oversubscription cases, retail applicants may get one lot or none. In a lottery-based system, allotment may not correspond to the number of lots applied for. Conversely, in under-subscribed IPOs, all eligible applicants might receive full or partial allotment.
Once you check your IPO allotment status, your next steps could depend on whether you were allotted shares or not.
Monitor the listing date on NSE/BSE.
Track listing date and confirm share credit in the demat account via NSDL/CDSL.
Check if the shares have been credited to your demat account via NSDL/CDSL.
Refunds or UPI unblocking may occur within one or two working days.
Check your bank account for refund confirmation.
Funds may be unblocked and available for other financial activities, subject to user discretion.
Bajaj Markets and similar platforms might offer you alerts, historical IPO data, and insights into upcoming issues — allowing you to plan future applications.
The IPO allotment process might seem complex at first, but it follows a clearly defined structure under SEBI regulations. Being aware of the timeline, knowing how to check IPO allotment status, and understanding post-allotment procedures may help investors stay better informed.
While there are no shortcuts to securing an allotment, careful application and awareness may help users better understand the IPO allotment structure. Financial marketplaces like Bajaj Markets might help users by simplifying access to IPO insights, listings, and demat services for informed participation.
