Google trend - IPO Allotment

IPO Allotment - 10 things to know with detail

• What is IPO Allotment?
• IPO allotment is the process of allocating shares to investors who have applied for shares in an Initial Public Offering (IPO). It is done through a lottery system or on a pro-rata basis, depending on the demand for the shares.
• How is IPO Allotment Done?
• IPO allotment is typically done by the registrar of the IPO, who is responsible for handling the share application process. The registrar uses a computerized system to randomly allocate shares to investors based on the number of shares they have applied for.
• Who is Eligible for IPO Allotment?
• Any individual or entity who meets the eligibility criteria set by the company issuing the IPO can apply for shares in the IPO. This criteria may include factors such as minimum investment amount, residency status, and other requirements.
• What Factors Determine IPO Allotment?
• The allotment of shares in an IPO is determined by various factors, including the demand for the shares, the number of shares available for allocation, and the number of shares applied for by investors.
• What is a Lottery System in IPO Allotment?
• In cases where the demand for shares in an IPO exceeds the number of shares available for allocation, the registrar may use a lottery system to randomly allocate shares to investors. This is done to ensure a fair and transparent allotment process.
• What is Pro-rata Allotment in IPO Allotment?
• Pro-rata allotment is a method of allocating shares in an IPO based on the number of shares applied for by investors relative to the total number of shares available for allocation. This ensures that each investor receives a proportionate number of shares based on their application amount.
• How to Check IPO Allotment Status?
• Investors can check their IPO allotment status on the website of the registrar of the IPO or on the website of the stock exchange where the company is listed. They will need to enter their application number or PAN card details to check their allotment status.
• What Happens After IPO Allotment?
• After the allotment of shares in an IPO, investors who have been allotted shares will receive a confirmation of allotment along with the number of shares allotted to them. They will then need to make payment for the shares within the specified time frame to complete the purchase.
• Can Investors Sell Allotted Shares Immediately?
• Investors who have been allotted shares in an IPO are typically subject to a lock-in period, during which they are not allowed to sell the shares. This lock-in period is usually specified in the IPO prospectus and can range from a few days to a few months.
• What Happens if Shares are Not Allotted?
• If an investor's application for shares in an IPO is not allotted, they will receive a refund of the application amount within a specified time frame. They can then use this amount to apply for shares in other IPOs or invest in other securities.