IPO Allotment Status: How to Check

What Is IPO Allotment and Why Does It Matter?

When a company decides to go public, it offers a fixed number of shares to the public at a specific price or within a price band. The total number of shares available is finite. If the number of applications received exceeds the shares on offer - a situation called oversubscription - not everyone who applied can receive shares. This is where allotment comes in.

IPO allotment is the process by which the registrar to the issue distributes the available shares among eligible applicants. SEBI has prescribed specific rules for how this distribution must happen across different investor categories. The three main categories in a typical mainboard IPO are Qualified Institutional Buyers (QIB), Non-Institutional Investors (NII, also called High Net-worth Individuals or HNIs), and Retail Individual Investors (RII). Each category has a reserved quota of shares, and allotment within each category follows different rules.

For retail investors - those applying for shares worth up to Rs 2 lakh - allotment in an oversubscribed IPO is done through a computerised lottery system. If the retail portion is oversubscribed, each eligible application receives a maximum of one lot in the first round of allotment. If shares still remain after giving one lot to every eligible applicant, additional lots are distributed by lottery. This means a retail investor's chance of allotment is essentially binary in highly oversubscribed IPOs: you either get one lot or you get nothing.

Why does this matter? Because understanding the allotment mechanism helps you set realistic expectations. In an IPO that is subscribed 50 times in the retail category, your statistical probability of receiving one lot is roughly 1 in 50, or about 2 percent. No strategy, no broker, and no application trick changes this fundamental odds calculation - the lottery is computerised and monitored by the stock exchanges.

Allotment status also matters from a funds-management perspective. Under the ASBA (Application Supported by Blocked Amount) mechanism, the money in your bank account is blocked - not debited - at the time of application. If you do not receive an allotment, the block is released and your funds become freely available again. Knowing your allotment status promptly tells you when to expect this release, so you can plan your next investment move without unnecessarily keeping those funds idle.

Finally, allotment status feeds directly into your demat account. Allotted shares are credited to your demat account, and only after that can you sell them on listing day. If you do not verify allotment and assume shares have arrived, you might attempt to place sell orders that cannot be executed, leading to confusion and potential penalties for short selling.

The Timeline: From IPO Close to Listing Day

One of the most frequently asked questions by first-time IPO investors is: "When will I know if I got shares?" SEBI has mandated a specific timeline that every mainboard IPO must follow, and understanding this timeline helps you know exactly when to check your status and when to expect credits or refunds.

For mainboard IPOs, the regulatory timeline as per SEBI's revised guidelines (which have been progressively tightened over the years to protect investors) is as follows:

Day 0 is the IPO close date - the last day on which bids can be submitted. After this, the bidding window shuts and the exchange data is frozen.

Day T+1 (one business day after close): The basis of allotment is typically finalised by the registrar in consultation with the lead managers and stock exchanges. This is the day when the computerised lottery is run and allotment decisions are made.

Day T+2: The allotment status is officially made public. Shares are credited to the demat accounts of successful allottees, and unblocking of ASBA funds (or refund initiation for non-ASBA applications) begins for those who did not receive allotment. Investors can now check their status on BSE, NSE, registrar portals, and broker platforms.

Day T+3 (listing day): The company's shares begin trading on the stock exchange. By this day, all allotted shares should reflect in your demat account and be available for trading.

This compressed T+3 timeline (earlier it was T+6) was introduced by SEBI to reduce the float period during which investor funds remain blocked. For SME IPOs listed on BSE SME or NSE Emerge, the timelines may vary slightly, but the broad framework remains the same.

Practically speaking, most investors find that allotment status becomes visible on the registrar's website and on BSE/NSE portals by the evening or night of T+1, even before the official T+2 date. This happens because data is updated progressively as the registrar completes processing. However, the official credit of shares to demat accounts happens on T+2, so you should not assume shares have arrived just because the status shows "Allotted" on the website.

One important nuance: the timeline counts business days, not calendar days. If an IPO closes on a Friday, the listing typically happens the following Wednesday (assuming no intervening public holidays). SEBI holiday calendars for NSE and BSE are the reference point for computing these dates.

For SME IPOs, the subscription-to-listing window is typically six working days, slightly longer than mainboard IPOs. Investors applying in SME IPOs should factor this extended timeline into their cash-flow planning, as ASBA blocks remain in place for the full duration.

Tracking this timeline carefully also helps you identify anomalies. If by T+3 shares are not visible in your demat account despite an "Allotted" status on the registrar's portal, you should contact your depository participant (DP) or broker immediately rather than waiting indefinitely.

How the Lottery-Based Allotment System Works for Retail Investors

The lottery system for retail IPO allotment is one of the most misunderstood aspects of the Indian IPO process. Many investors believe that applying from multiple family members' accounts, applying for the maximum number of lots, or applying early in the subscription window improves their chances. Understanding the actual mechanics dispels these myths and helps you make more informed decisions.

Step one: Basis of Allotment. After the IPO subscription window closes, the registrar collects all valid bid data from the stock exchanges (NSE and BSE use their respective bidding platforms). The registrar then prepares what is called the "Basis of Allotment" - a document that shows how shares are being distributed across categories and, within the retail category, how the lottery was conducted.

Step two: Deduplication and validity check. The registrar removes duplicate applications. SEBI rules prohibit a single PAN from making more than one application in an IPO. If multiple applications are submitted against the same PAN - even through different brokers or bank accounts - all but one are typically rejected. This is enforced through PAN-level deduplication at the exchange level.

Step three: Minimum lot allotment round. In the retail category, if the IPO is oversubscribed, the registrar first attempts to give every valid applicant exactly one lot (the minimum bid lot). If the total number of valid retail applications multiplied by one lot exceeds the retail quota of shares, then not all applicants can receive even one lot. In this case, a computerised draw of lots is conducted to determine who receives one lot.

Step four: Additional lot distribution. If after the first round (one lot each) there are shares still remaining in the retail quota, the remaining shares are distributed as additional lots through another lottery round. This second round is rare in highly oversubscribed IPOs but common in mildly oversubscribed or exactly-subscribed issues.

Step five: Proportionate allotment in NII category. Unlike retail, the Non-Institutional Investor (NII) category uses proportionate allotment - meaning investors applying for more shares receive more (though not necessarily the full amount applied for). Within the NII bucket, SEBI has further divided the category into sNII (small NII, applying between Rs 2 lakh and Rs 10 lakh) and bNII (big NII, applying above Rs 10 lakh), each with its own sub-quota.

Practical implication: For retail investors, applying for more lots than the minimum does NOT improve your probability of allotment in a heavily oversubscribed IPO. In the lottery round, only the binary outcome matters - whether your application number is selected. However, applying for more lots is not harmful either, except that it blocks a larger ASBA amount for the subscription duration. Many experienced investors simply apply for the minimum one lot to minimise the opportunity cost of blocked funds.

Another common myth is that applying through a specific broker or bank gives preferential treatment. This is false. The allotment process is conducted by the registrar based on exchange data, and no broker has the ability to influence who gets allotted shares. The process is designed to be entirely transparent and is audited.

Where to Check Your IPO Allotment Status: All Methods Explained

There are several official channels through which you can verify your IPO allotment status. Each method has slightly different navigation, but they all draw from the same registrar data. Here is a detailed walkthrough of each approach.

Method 1: BSE IPO Allotment Status Portal The Bombay Stock Exchange (BSE) maintains a dedicated IPO allotment status page accessible at the official BSE website. To use this: - Navigate to the BSE website and find the IPO section, then select "Allotment Status." - Select the IPO name from the dropdown list of recent issues. - Choose your query type: either PAN number or Application Number. - Enter the relevant detail and submit. BSE displays the allotment outcome directly - whether you have been allotted shares, and if so, how many. This method works for IPOs listed on BSE. For IPOs listing on NSE only, the BSE portal may not have data.

Method 2: NSE IPO Allotment Status Portal The National Stock Exchange (NSE) offers a similar lookup tool on its official website. Steps are broadly the same as BSE - select the IPO, enter PAN or application number, and view results. NSE's portal is particularly useful for IPOs that list exclusively on NSE, such as SME IPOs on NSE Emerge.

Method 3: Registrar to the Issue Website This is often the most detailed and earliest-updated source. Different IPOs use different registrars. Common registrars in India include KFin Technologies (formerly Karvy Fintech), Link Intime India (a subsidiary of Link Group), Bigshare Services, Cameo Corporate Services, and MUFG Intime India. Each has its own portal with an IPO status lookup section. On the registrar's website: - Select the IPO from a list or enter the company name. - Choose search type: PAN, Application Number, DP/Client ID, or Account Number (IFSC + Account). - Enter the required detail and submit. The registrar portal typically shows the most granular data - including the number of shares applied for, shares allotted, and refund amount if applicable.

Method 4: Broker or Trading App Most modern Indian stockbrokers provide IPO allotment status directly within their trading apps or web platforms. If you applied for the IPO through a specific broker, their app will often show your application status under the IPO section. The data shown comes from the same registrar feed but is presented in a more user-friendly interface. This is the most convenient method for most retail investors.

Method 5: Demat Account or DP App Once shares are officially credited (T+2 from IPO close), you can verify allotment by checking your demat account holdings. If the company's shares appear in your holdings, allotment has been successful. This is the most definitive confirmation because it reflects actual ownership, not just a portal entry.

Method 6: Email and SMS Notifications SEBI mandates that registrars send allotment intimation to applicants via email and SMS. The email is sent to the address linked with your demat account or PAN, and the SMS goes to your registered mobile number. While these notifications are convenient, they should be cross-verified with the official portals because technical delays occasionally cause notification failures.

Which method is best? Using the registrar portal or BSE/NSE portal for official confirmation, cross-checked with your demat account on listing day, is the most reliable approach.

Step-by-Step: Checking Allotment Status on BSE

The BSE allotment status portal is arguably the most widely used tool for checking IPO allotment in India, and for good reason - it is official, free, simple to use, and covers a large number of mainboard IPOs. Here is a detailed walkthrough.

Step 1: Open the BSE website Visit the official BSE India website (bseindia.com). Make sure you are on the genuine BSE website. Phishing sites mimicking BSE do exist, so always check the URL carefully. Bookmark the page after your first visit.

Step 2: Navigate to the IPO section On the BSE website, look for the "Investors" section or use the search functionality to find "IPO Allotment Status." The exact navigation path may change as BSE updates its website layout, but the allotment status page has been a consistently available feature.

Step 3: Select the company A dropdown menu lists all recent and ongoing IPOs for which allotment data is available. Select the company whose IPO you applied for. If the IPO is very recent and results are not yet finalised, the company may not yet appear in the dropdown. In that case, check back a few hours later.

Step 4: Choose query type BSE gives you two options for looking up your status: - PAN: Enter your Permanent Account Number. This is the most straightforward method since your PAN is linked to all your investment accounts. - Application Number: This is the unique number assigned to your IPO application, visible in your broker's app or the bidding confirmation you received. For most investors, using PAN is easier since the application number requires looking up old records.

Step 5: Enter CAPTCHA and submit Enter any CAPTCHA displayed (a security measure to prevent automated queries) and click the search or submit button.

Step 6: Read the result The result page will show: - Your application number - Category (Retail, NII, QIB, etc.) - Number of shares applied for - Number of shares allotted - Allotment status (Allotted / Not Allotted / Partially Allotted in some cases) If shares have been allotted, the page shows the exact quantity. If not, it will show zero allotment and the refund status.

Step 7: Verify with demat account Always corroborate the portal result with your actual demat holdings. If the portal shows allotment but shares are not in your demat by listing day morning, contact your DP or broker immediately.

Common issues users face: - "Application not found" error: This can mean the application is still being processed, or there was an error in your application that led to rejection. Wait a few hours and retry, or cross-check through your broker. - Incorrect PAN entry: A typo in PAN gives "not found" errors. Double-check each character. - IPO not listed in dropdown: The results may not yet be published. Check SEBI's IPO calendar for the official allotment date.

Understanding the Basis of Allotment Document

Behind the simple "Allotted" or "Not Allotted" shown on portals lies a detailed document called the Basis of Allotment. This is a public document, filed with the stock exchanges and published on the registrar's website and exchange platforms, that explains in granular detail how the allotment was conducted for every application category. Understanding this document deepens your knowledge of the allotment process and helps you verify that the process was followed correctly.

What the Basis of Allotment document contains:

Category-wise summary: The document lists each investor category - QIB (with sub-categories like anchor investors, domestic mutual funds, foreign institutional investors), NII (sNII and bNII), and RII (Retail Individual Investors) - along with the number of shares reserved for each, the number of shares actually applied for (subscription level), and the final allotment.

Retail section breakdown: For the retail category, the document shows the total valid applications received, the number of applications at the minimum bid lot, the total shares available for retail allotment, and the ratio or lottery process used. For example, if 15,00,000 valid retail applications were received and the retail quota supported only 3,00,000 allotments (one lot each), the document would state that every fifth valid application was allotted one lot - or that a computerised draw was used to select 3,00,000 lucky applicants from the pool.

NII section breakdown: The NII section explains the proportionate allotment ratio. If the NII portion was subscribed 80 times, applicants in the sNII bucket might receive roughly 1/80th of their applied quantity (subject to minimum lot adjustments).

Invalid/rejected applications: The document also notes how many applications were rejected and for what reasons - duplicate PAN, insufficient funds, technical errors, etc.

Where to find it: The Basis of Allotment is uploaded to the BSE and NSE websites under the IPO filings section for the respective company. It is also available on the registrar's website. While it is a dry financial document, it is freely accessible to any investor.

Why should retail investors read the Basis of Allotment? Primarily for education - it shows you, with actual numbers, just how competitive the allotment process was. If you see that the retail category was subscribed 70 times and 1 in 70 applicants received allotment, you understand why you were not allotted despite applying. It also helps you compare IPOs: a less popular IPO with 2x subscription means near-certain allotment, while a 100x subscribed issue makes allotment extremely difficult.

For serious IPO investors who apply regularly, tracking the Basis of Allotment across multiple IPOs helps build intuition about which categories of IPOs tend to be oversubscribed in the retail segment and which offer better allotment probabilities. This is not a guarantee or a strategy, but simply an informational edge that comes from understanding the data.

What Happens If You Are Not Allotted Shares?

Not receiving allotment in an oversubscribed IPO is extremely common and should not be a cause for alarm. The process is designed to ensure that more investors participate, even if each individual's chance is lower. Here is exactly what happens to your money and your application when allotment does not go your way.

Funds unblocking under ASBA: The overwhelming majority of Indian retail IPO applications today go through the ASBA (Application Supported by Blocked Amount) mechanism. Under ASBA, your application money is not debited from your bank account at the time of application - instead, it is blocked by your bank, on instruction from the exchange. The funds remain yours, earn any applicable interest (for savings accounts), and you can see them in your account balance but cannot withdraw the blocked portion.

When allotment is finalised and you are not allotted any shares, the ASBA block is released. Your bank removes the lien on the funds and the amount becomes freely available for withdrawal and use. The timeline for this release, per current SEBI guidelines, is T+2 from the IPO close date - the same day allotment happens. In practice, the unblocking may happen anytime during that day, and different banks process it at different speeds. Some investors see the funds available by morning, others by evening.

Partial allotment and partial refund: In the NII category, where proportionate allotment is used, it is possible to receive fewer shares than you applied for. In that case, the amount corresponding to unallotted shares is unblocked. For example, if you applied for 10 lots worth Rs 8 lakh and received allotment for 2 lots worth Rs 1.6 lakh, the remaining Rs 6.4 lakh is unblocked and returned to free availability.

Old-style refund (non-ASBA): For any applications processed outside the ASBA system (which is rare today but still possible in some cases), the registrar initiates a refund by NEFT, RTGS, or cheque. SEBI mandates these refunds happen within a specified number of days from IPO closure. Delays in refunds beyond the regulatory timeline can attract penal interest, providing applicants some protection against registrar inefficiency.

What to do if funds are not unblocked on time: If the expected unblocking date has passed and your funds remain blocked, your first step should be to check your IPO allotment status through official portals to confirm whether you were actually not allotted. Sometimes, allotment is confirmed but demat credit is delayed, which is different from a refund issue. If allotment status shows "Not Allotted" but funds remain blocked beyond T+2, contact your bank's customer service first - they can check the ASBA block status. If the bank confirms the block has been released on their end but the funds do not show as available, the issue may be internal to the bank's processing queue. Persist through escalation channels. You can also lodge a complaint on SEBI's SCORES (SEBI Complaints Redress System) portal if the issue is not resolved within a reasonable timeframe.

Psychological note for investors: Losing an allotment in a well-publicised IPO, especially one that subsequently lists at a significant premium, can be disappointing. It is important to remember that IPO performance on listing day - and in the longer term - is not guaranteed. An issue that generates excitement in the subscription phase does not always list at a premium, and those who did not receive allotment are sometimes better off. SEBI requires that all IPO documents contain risk factors, and investors should always read the Red Herring Prospectus (RHP) before applying, not just rely on market buzz.

Common Errors and Rejection Reasons in IPO Applications

One of the most frustrating outcomes is receiving a "Not Allotted" status not because of the lottery but because your application was technically rejected before even entering the allotment pool. Understanding the common rejection reasons helps you avoid them in future applications.

Duplicate PAN applications: This is the single most common cause of retail application rejection. SEBI rules are clear: one PAN, one application per IPO. If you accidentally applied twice - perhaps through your broker's app once and through net banking once - both applications may be cancelled. Always confirm you have submitted only one application and received exactly one application confirmation.

Insufficient funds in ASBA account: At the time of IPO application, the ASBA mechanism checks whether your savings account has enough funds to cover the blocked amount. If your account balance is lower than the total application amount (price band upper end × number of lots applied for), the application can be rejected. Ensure your account has adequate balance before applying.

PAN not linked to demat account or bank account: Your PAN must be consistent across your bank account, demat account, and trading account. Mismatches can cause the application to be flagged during validation. If you have recently updated your PAN or demat details, verify the linkages are correctly updated across all platforms.

Invalid UPI ID or expired UPI mandate: For applications submitted through the UPI-based ASBA mechanism (increasingly common for retail investors), the UPI ID must be valid and the mandate approval must be completed within the prescribed time window (currently 30 minutes from bid submission for the UPI block mechanism). If you submitted a bid but did not approve the UPI mandate in time, the application is rejected. Always complete the mandate approval immediately after bid submission.

Bidding below the floor price: In a book-built IPO with a price band, you must bid at or above the floor price. Bids submitted below the floor price are invalid. Bidding at the cut-off price (for retail investors) is the most common practice and automatically entitles you to allotment at whatever price is finalised.

Demat account not in order: If your demat account is frozen, suspended, or has not completed KYC, shares cannot be credited and the application may be rejected at the allotment stage. Ensure your demat account is fully operational before applying.

Third-party UPI or bank accounts: SEBI rules specify that the bank account used for ASBA must belong to the applicant (the same person in whose name the application is made). Third-party ASBA applications are not permitted. For example, if you are applying in your own name but the ASBA is from your spouse's account, the application will be rejected.

Late bid submission: IPO bidding windows have a fixed closing time (typically 5 PM IST on the last day of bidding, though this can vary). Applications submitted after the window closes are not accepted. Avoid last-minute applications - technical glitches on broker platforms or bank websites are more common when volumes surge near the deadline.

Application amount exceeding Rs 2 lakh for retail category: Retail investors can apply for a maximum of Rs 2 lakh worth of shares. If your total application value (upper price band × number of lots) exceeds this threshold, you are automatically reclassified into the NII category. This is not a rejection per se, but it means your application will be processed under NII rules (proportionate allotment, different quota), which changes your experience significantly.

Being aware of these pitfalls and double-checking your application before submission - particularly around PAN, UPI mandate approval, and account balance - significantly reduces the chance of technical rejection.

IPO Allotment for Different Investor Categories: A Comparative View

The IPO allotment process differs quite significantly depending on which investor category you fall into. Understanding these differences is valuable whether you are a retail investor, an HNI, or investing through a corporate entity.

Retail Individual Investors (RII): RIIs are individuals applying for shares worth up to Rs 2 lakh in total. In mainboard IPOs, 35% of the issue is reserved for this category. Allotment in the retail category is done through a lottery system when the category is oversubscribed. The key characteristic is that every valid application has an equal chance of receiving one lot - the lottery does not favour larger applications within the retail bucket. Employees of the issuing company applying through the employee reservation portion are treated separately and generally receive preferential allotment.

Non-Institutional Investors (NII / HNI): NIIs are investors applying for more than Rs 2 lakh. In mainboard IPOs, 15% of the issue is reserved for this category. Unlike retail, the NII category uses proportionate allotment - each applicant receives shares in proportion to the amount applied for, subject to minimum lot constraints. SEBI has split the NII quota into two sub-categories: one-third reserved for sNII (applications of Rs 2 lakh to Rs 10 lakh) and two-thirds for bNII (applications above Rs 10 lakh). This split was introduced to prevent very large HNI applications from completely crowding out smaller NII applicants.

Qualified Institutional Buyers (QIB): QIBs include mutual funds, insurance companies, foreign portfolio investors (FPIs), banks, and other institutional entities. 50% of the net offer is reserved for QIBs in a mainboard IPO. Allotment in the QIB category is at the discretion of the company (in consultation with the book-running lead managers), subject to SEBI's anti-discriminatory guidelines. QIBs cannot withdraw their bids after the close of the IPO window, ensuring genuine commitment.

Anchor Investors: Before the public IPO opens, companies can place up to 60% of the QIB portion (i.e., 30% of the total issue) with Anchor Investors - large institutional investors who agree to buy at the IPO price and are subject to a 30-day lock-in period. Anchor investor allotment is not subject to the same lottery rules; it is negotiated and announced one day before the IPO subscription opens.

Employee Reservation Portion: Many IPOs include a reserved portion for employees of the issuing company. This is separate from the public issue and typically offered at a discount to the issue price. Employees apply through a separate form and receive allotment preferentially from this reserved pool.

Shareholder Reservation Portion: For offers for sale (OFS) by existing listed companies or for rights issues structured as public offerings, existing shareholders may have a reserved portion. This works similarly to the employee reservation quota.

SME IPOs (BSE SME and NSE Emerge): SME IPOs have a different allotment structure. The minimum application size is higher (often one lot worth Rs 1 lakh or more), and the entire net offer is effectively treated as a single category for proportionate allotment among all applicants. SME IPOs do not have the same 35/15/50 category split as mainboard IPOs. This makes allotment more predictable but the issues are generally smaller and liquidity post-listing can be lower.

NRI and FPI applicants: Non-Resident Indians (NRIs) can apply for IPOs through their NRE/NRO accounts under the portfolio investment scheme. They are typically categorised as NIIs (unless the IPO has a separate NRI quota). FPIs apply as QIBs. The allotment rules for these categories follow the same framework as for resident applicants in the respective buckets.

Post-Allotment Steps: Demat Credit, Listing, and Tax Considerations

Once you have confirmed your allotment status, there are several important steps and considerations to be aware of before and after listing day.

Demat credit confirmation: Allotted shares are credited to your demat account on T+2 from the IPO close date. To confirm credit, log in to your depository participant's (DP's) account - either through your broker's app, CDSL's myeasi portal, or NSDL's IDeAS portal - and check your holdings. The shares will appear under the company name. Note that shares allotted in an IPO carry an ISIN (International Securities Identification Number) that will be the same ISIN under which the shares trade on the exchange post-listing.

Listing day selling: If you wish to sell your allotted shares on listing day, you must first confirm that shares are in your demat account. Once confirmed, you can place a sell order through your trading account during normal market hours on listing day. IPOs list on BSE and/or NSE depending on the exchanges the company chose to list on (most mainboard IPOs list on both). Trading begins at the pre-open session (9:00 AM to 9:45 AM IST on listing day), with the actual listing price discovered during this pre-open call auction. Regular trading commences at 9:45 AM IST (or 10:00 AM IST for SME IPOs, which may have different timings).

Lock-in period: Retail investors in a standard IPO have no lock-in period - you can sell immediately on listing day if you choose. However, anchor investors have a 30-day lock-in on 50% of their allotted shares and a 90-day lock-in on the remaining 50%. Promoters and pre-IPO shareholders face longer lock-in periods as specified in the prospectus.

Tax treatment of IPO gains: This is an important area where investors often lack clarity. The tax treatment of profits from selling IPO-allotted shares depends on the holding period:

- If you sell shares on or before listing day (i.e., within a very short holding period), the gains are classified as short-term capital gains (STCG) since the holding period is less than 12 months. - Short-term capital gains on listed equity shares are taxable. Please refer to the latest Finance Act for the applicable rate, as this has changed in recent Budget sessions. - If you hold the shares for more than 12 months from the date of allotment, any gains are classified as long-term capital gains (LTCG) on listed equity, which has its own tax treatment under the latest Finance Act. - The cost of acquisition for tax purposes is the allotment price (i.e., the IPO price at which shares were allotted). - Securities Transaction Tax (STT) is levied on the sale of shares through a recognised stock exchange and must be factored into your cost calculations.

For precise tax rates applicable in the current financial year, always consult the latest Finance Act or a qualified tax advisor. Tax rules on capital gains from equity instruments have seen revisions in multiple recent Budgets, and quoting a specific rate risks inaccuracy.

Dividends post-IPO: If the company declares a dividend after listing and you hold shares at the record date, you are entitled to receive the dividend regardless of whether you originally received shares through the IPO or bought them in the secondary market. Dividends from listed companies are taxable in the hands of the shareholder as per applicable income tax slabs.

Corporate actions: Companies post-listing may undertake various corporate actions - stock splits, bonus issues, rights issues, buybacks. Being aware of these keeps you informed about changes to your holding's value and structure.

Example

Key benefits

How it works

1. 1
   IPO Subscription Window Closes

   Once the bidding window shuts (typically 5 PM IST on the closing day), no new bids or modifications are accepted. Exchange data is frozen and sent to the registrar.

2. 2
   Registrar Processes Bids

   The registrar collects all valid bids from BSE and NSE, removes duplicates, checks for invalid applications (wrong PAN, insufficient funds, etc.), and prepares the pool of eligible applications.

3. 3
   Basis of Allotment Finalised

   Using SEBI-prescribed rules, the registrar runs the lottery (for retail) or proportionate allotment (for NII) and finalises the Basis of Allotment document, typically by T+1 from IPO close.

4. 4
   Allotment Status Published

   Results go live on the registrar's website and on BSE and NSE portals by T+2. Allottees also receive email and SMS confirmations from the registrar.

5. 5
   Shares Credited to Demat Accounts

   On T+2, allotted shares are electronically transferred to the demat accounts (held with CDSL or NSDL) of successful allottees via the depository system.

6. 6
   ASBA Unblocking for Non-Allottees

   On T+2, the ASBA block is released for applicants who did not receive allotment, making their funds freely available in their savings accounts.

7. 7
   Shares Begin Trading on Listing Day (T+3)

   Allotted shares are available for trading from listing day. The listing price is determined through a pre-open call auction session, after which normal trading commences on NSE and BSE.

Formula

Allotment Probability (Retail) = (Total Retail Shares Available ÷ Minimum Lot Size) ÷ Total Valid Retail Applications
Example: (60,00,000 ÷ 30) ÷ 75,00,000 = 2,00,000 ÷ 75,00,000 ≈ 2.67% chance per application

Key takeaways

Frequently asked questions

Related terms