IPO Demystified: How Allotment Works For Retail Investors In India

As IPO participation surges across India, understanding the allotment process is key for first-time investors aiming to secure shares in high-demand offerings.

Allotment Breakdown:
  
- Investors apply via ASBA through banks or brokers during the subscription window  
- Applications are verified by registrars like Link Intime or KFintech for PAN and Demat accuracy  
- Retail investors (up to ₹2 lakh) are allotted shares via lottery if oversubscribed  
- HNIs and QIBs receive proportional allotments based on bid size  
- Refunds and share credits are processed within 6 working days post closure  
- Basis of Allotment document outlines category-wise distribution and success ratios  
- Oversubscription often leads to single-lot allotment per PAN in retail category

Investor Tip:  

- Apply early, avoid duplicate PAN entries, and monitor registrar portals for status updates

Sources: InvestorInsite IPO Guide 2025, Chittorgarh IPO Handbook, HDFC Sky Learn IPO Tracker