What is the Basis of Allocation or Basis of Allotment?

Basis of Allotment is a document published by the registrar of the IPO based on SEBI guidelines after finalizing the share allocation. This document provides information on the demand for the shares issued.

After the closure of the issue, the bids received are categorized under different segments such as RII, NII, QIB, etc. Retail, etc.

After classification of the received bids, the oversubscription ratios is calculated for the corresponding groups with respect to the shares reserved for them. The bids are then aggregated amongst different segments based on their applied shares.