The first time a private company sells shares to the public, it does so through an IPO (Initial Public Offering). The money raised via the IPO is used for the growth and expansion of the company. For an investor, buying shares in an IPO can be the most thrilling moment, as the offer for which the shares would be allocated is subject to allotment.
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IPO Allotment Process
Applying for an IPO does not guarantee the number of shares that one applied for. This is because the IPOÂ is oversubscribed; that is, more people want shares than the number of shares allotted to the public. Hence, the allotment process applies, whereby a determination is made on who gets the shares and the number of shares allocated.
Allotment is then given through a lottery system where random selection is made; in case of success, shares are credited to the Demat account. If not, then the money is returned. IPO allotment enables you to check if you received the shares.
Allotment Status of IPO Shares
The allotment status of an IPO simply means whether or not you have received shares. As per the IPO definition, an Initial Public Offering allows investors to apply for shares of a company before it gets listed on the stock exchange. If you are allotted shares, they will be credited to your demat account, from where you can sell them once the stock is listed. If you do not receive an allotment, you won’t get the shares and your invested money will be refunded.
IPO allotment status is, by design, what helps you take the next steps in your investment journey. For all intents and purposes, if you fail to get shares, you can then look into other investment opportunities instead.
How to Check IPO Allotment Status?
Now there are several ways by which you can check your IPO allotment status. Given below is how to go about it:
1. Registrar’s Website
Every IPO has a registrar through which allotments will be made. After the conclusion of the IPO, the registrar will upload the allotment status on their website. To know about your status:
Go to the registrar’s website.
Fill in your application or PAN number.
View the status for the allotment of shares.
Common registrars for IPOs include KFin Technologies, Link Intime, and Karvy Fintech.
2. Stock Exchange Websites (BSE or NSE)
Allotment status can be checked according to the stock exchanges where the IPOs will be listed:
BSE (Bombay Stock Exchange)
NSE (National Stock Exchange)
Simply enter the application number or PAN number in the allotted section of the BSE or NSE and check the status.
3. Brokerage platforms
If applying through a broker for the IPO, a registry platform can be checked for the allotment status. Most of these brokers bring this service through their online accounts for trading. Simply log in to your account, go to IPO and find out your allotment status.
4. Notification Through SMS or Email
In some cases, the registrar or your broker might send a message or email to inform you of the IPO allotment status. It exists as one of the speediest and quickest ways to know if the right contact details are provided during your application process.
5. Much Like Mobile Applications
Quite a few financial apps will carry the IPO allotment status check. They are either broker or financial service-provided applications with notifications concerning your allotment status.
IPO Allotment Status Timeline
IPO allotment will take place 7-10 days maximum from when the IPO closes. If you were successful in securing the allotment, your account would be credited with the allotted shares within this timeframe. Where shares are not credited, the application money shall be refunded. Dates related to allotments also have to be keenly followed, not to miss out on notifications.
Conclusion
Having the IPO allotment status is crucial at the time of IPO because it says whether or not a successful allotment of shares was given to you. Most of the time, people do not get all the shares as applied for due to heavy subscription. You can check via the registrar’s website, stock exchange sites, or even through your broker; you could even get notifications through email or SMS for all these. Informed of your allotment status, one may decide on the next step based on whether one has been allotted shares or not.