IPO Allotment Process
Understanding how IPO shares are allocated to applicants
IPO allotment is the process by which shares are distributed among applicants after the bidding window closes. Allotment follows a structured methodology established by SEBI. For retail and HNI categories, lottery system is used when oversubscription exceeds threshold. For QIB category, proportionate allocation based on bid quantity. Allotment typically occurs within 2-3 days after bidding closes. Successful allottees receive confirmation through their demat account and brokers. Failed applicants have refunds credited within 4-5 days. Different categories have reserved share quotas: Retail (35%), HNI (15%), QIB (50%). Allotment methodology is disclosed in RHP for each IPO.