Investing in an Initial Public Offering, be it a new investor or an experienced one, is really an exciting time. One waits with bated breath for the news about allotment of shares to find whether shares have been allocated or not, especially if there is an oversubscription of IPOs. Now, checking IPO allotment status is one crucial activity in the process that ensures you are better prepared about what to do next. Let's understand this.
What is IPO Allotment?
IPO allotment is the process through which shares of a company are allotted to investors after the application period of the IPO has closed. Each IPO is divided into categories, including retail investors, qualified institutional buyers (QIBs), and noninstitutional investors (NIIs). In most cases, for retail investors, allotment is usually made through a lottery system in case the IPO is oversubscribed.
For example, in highly subscribed IPOs, applications could be much more than available shares. In that situation, not all applicants would receive shares as allotment will depend on predefined rules specified by the company and SEBI (Securities and Exchange Board of India).
Being aware of checking your IPO allotment status helps you to remain well informed about your results without waiting unnecessarily.
Methods to Check IPO Allotment Status
There are various ways to check the IPO allotment status, and this makes it simple and accessible for investors.
1. Through the Registrar's Website
The registrar of an IPO is responsible for processing all applications and allotments. Popular registrars like KFin Technologies and Link Intime India provide a user-friendly interface for checking your allotment status. Here's a step by step guide:
Step 1: Visit the official website of the IPO registrar.
Step 2: Navigate to the ‘IPO Allotment Status’ section.
Step 3: Select the IPO name from the list of recent issues.
Step 4: Enter your PAN, application number, or DP Client ID.
Step 5: Submit the details and view your allotment status.
This method is reliable and widely used by investors.
2. Via NSE or BSE Websites
National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) also enable check of the IPO allotment status. Follow the given steps:
Step 1. Open the IPO allotment page of NSE or BSE website.
Step 2. Enter the PAN or application number
Step 3. From the list, choose the IPO name.
Step 4. Validate the security captcha and click on the search button. Once the allotment has been processed, information regarding the same would come out on the screen.
3. Via your stockbroker or demat account
Stockbrokers or Demat accountproviders often update the allotment status directly on their platforms. Many brokers also send email or SMS notifications to inform their clients about the allotment results. You can log in to your trading account to check the status if this feature is available.
Key Information to Keep Handy
To ensure a seamless experience while checking your allotment status, you’ll need the following details:
PAN (Permanent Account Number): This is a unique identification number that will enable financial transactions in your account.
Application Number: Each IPO application gets an applied number which becomes a special reference number for tracking through that particular application number for each one.
DP ID/Client ID: Dependent on the depository participant and demat accounts that you are maintaining along with the DP. Each one will be issued his unique identifiers that have a linkage to your demat accounts. Verify these before logging in.
What After Allotment?
The outcome of your IPO allotment will determine the next steps in your investment journey. Here's what to do in both scenarios:
If Shares Are Allotted:
Congratulations! The shares will be credited to your Demat account before the listing date. You can monitor their performance once the stock starts trading on the exchange. This is a very crucial time for decision making whether you would hold the shares for long term growth or sell them for listing gains.
If Shares are Not Allotted:
Worry not as fast refunds are given for unallotted shares. It is credited back to your linked bank account through the ASBA system of Applications Supported by Blocked Amount. Keep an eye on your bank statements whether the refund is received without delays.
Conclusion
The journey of investing in an IPO does not end when you submit your application. Checking your IPO allotment status is the most crucial step that will keep you informed and prepared to take action. If you do get an allotment or don't, you'll know your status and make better financial decisions. Follow these simple steps, and make sure you have all the details ready for a smooth process.
Disclaimer: No Business Standard Journalist was involved in creation of this content