How IPO allotment is done if oversubscription?

Each retail (RII) and non-institutional investor (NII) should get the minimum bid lot subject to the availability of shares. Thus, if the number of RII and NII investors is less than the maximum number of RII and NII allottees, each investor will be allotted minimum bid lot initially. Thereafter the allotment will be made on a pro-rata basis. If, on the other hand, the number of applicants is higher than the number of allottees, the allotment will be made using pro rata and draw of lots.

The allotment to QIBs and other reserved categories is done on a proportionate basis. The registrar finalizes the basis of allotment in consultation with the Designated exchanges.

Allotment to anchor investors shall be made at the discretion of the issuer in consultation with the lead manager.