IPO
- How to apply for an Initial Public Offering (IPO) via Whatsapp?
- Can a minor apply for an IPO?
- How to apply for an IPO in the existing shareholder or employee category?
- How long does it take for IPOs to list on the exchange?
- What does cut-off price mean?
- Are there any charges to apply for an IPO?
- How does the allotment process work if the IPO is oversubscribed?
- When are funds unblocked if the IPO was not allotted?
- Why is the IPO allotment status not available on the RTA's portal?
How does the allotment process work if the IPO is oversubscribed?
An IPO is said to be oversubscribed when the number of applications exceeds the shares available for allotment. In such scenarios, the registrar will conduct a lottery to allot shares to the applicants.
List of Applicants| Investor | Quantity Applied |
|---|---|
| Investor 1 | 1 |
| Investor 2 | 2 |
| Investor 3 | 3 |
| Investor 4 | 3 |
| Investor 5 | 4 |
| Investor 6 | 4 |
| Investor 7 | 4 |
| Investor 8 | 5 |
| Investor 9 | 2 |
| Investor 10 | 1 |
| Total number of shares applied | 29 |
| Investor | Quantity Applied | Quantity Allotted |
|---|---|---|
| Investor 1 | 1 | 0 |
| Investor 2 | 2 | 1 |
| Investor 3 | 3 | 1 |
| Investor 4 | 3 | 0 |
| Investor 5 | 4 | 1 |
| Investor 6 | 4 | 0 |
| Investor 7 | 4 | 0 |
| Investor 8 | 5 | 0 |
| Investor 9 | 2 | 1 |
| Investor 10 | 1 | 1 |
| Total | 29 | 5 |
Investors (2), (3), (5), (9), and (10) have won the lottery conducted by the registrar and will receive shares against their IPO application. If an investor had applied at a price below the upper price band, then the bids would not have been considered for the allotment lottery.