An IPO involves dividing a company's shares into multiple segments and making them available for purchase by investors.This process of allotment is typically carried out during the company's initial public offering. Investors can check their assigned share quantity and allocation status through the IPO status check process.
After the allotment period ends, any surplus shares are made available to other investors. These particular shares are restricted and cannot be traded until the company has assigned and publicly listed them for sale. Delve deeper into this article to understand the process you need to follow to check the status of any IPO.
Steps to Check the IPO Allotment Status
Excitement mounts among investors as they eagerly await the IPO allotment status, a crucial step in the allocation process. These alerts hold immense significance as they offer key insights about IPO share allotment and also provide a timeline for investors. Such valuable information enables investors to make informed decisions about their investments.
The registrar assumes responsibility for releasing the IPO allotment calculation, which is determined by the allotment document. Once the allotment process is finalized, investors can conveniently check their IPO status online through the registrar's website. Furthermore, timely email and SMS notifications keep investors updated on their IPO allotment status.
You can also head to the BSE website and check the allotment IPO status using these steps:
1.Go to the BSE's official website and choose the 'Status of Issue Application' option.
2.Next, select 'Equity' under the 'Issue Type' section.
3.Now, you will have to pick the desired company name from the dropdown menu.
4.Then, provide the necessary details, such as the application number or PAN number.
How to Verify the Status of IPO Application
You will have to get on the registrar's website to verify the status of the IPO application. It is also possible to check the application status on the NSE and BSE websites. The application number or the DPID, along with the PAN number, if necessary, for the status check process.
The Calculation of IPO Allotment
Upon the completion of the share distribution process, the registrar promptly releases the IPO Basis of Allotment document as per legal regulations. This paper contains essential information regarding the demand for IPO stocks.
A significant factor to take into account for frequently oversubscribed IPOs is the allotment ratio, which denotes the proportion of applicants who will receive a single batch of shares out of a predefined number. Investors can confirm their allocation by visiting the registrar's official website.
Factors Influencing the IPO Allotment Process
Some factors that will influence the IPO allotment process include:
Company's Fundamentals: A company's strong fundamentals can pique the interest of investors. It can potentially drive up demand for shares and even cause IPOs to be oversubscribed.
Retail Vs. Institutional Investors: When it comes to receiving shares from companies, both retail and institutional investors are typically allotted a percentage. This allocation ratio considers the combined demand from these two important categories of investors.
Oversubscription: An oversubscribed initial public offering attracts eager investors with its promising growth potential. With investors rushing toward it, the IPO number can go up significantly.
Anchor Investors: Positive indicators from anchor investors also add to the chances of actually obtaining IPO allotments.
The Process of Deciding the IPO Allotment
The most favorable outcome for an IPO application is dependent on two possible scenarios, outlined below:
Scenario 1: If the total number of bids falls short of the company's offered shares, the Registrar's involvement is not necessary, as qualified investors will be allocated the desired lot.
Scenario 2: If the total number of bids exceeds the company's offered shares, the Registrar must devise a plan to distribute the shares. In this case, strict adherence to SEBI's regulations is required. It helps in ensuring that each application receives at least one share.
Ending Note
The status of the IPO allotment becomes available online within one week of the closing date. As you already know, the registrar remains responsible for this process of allocation. So, you can always check the status of the IPO online on your registrar's website or the BSE or NSE platform to learn about the allotment.
