What are the chances of IPO allotment?

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The subscription level and investor category determines the IPO allotment.

Below factors are taken into account while allocating shares in an IPO.

In the case of an under-subscribed IPO, each investor receives the full allotment.
In the case of oversubscription, each retail investor will receive at least one lot in an IPO, provided that sufficient shares are available for allocation to each retail investor. If it is not possible to allocate one lot to each applicant, the allocation will be made by draw of lots.
Allocation to QIBs and NIIs shall be made on a proportionate basis.

Topic: IPO Allotment Feedback

1 Comments

1. Kiran Kumar Addepalli

| Link|September 18, 2024 6:44:44 AMReply

What is the difference between NII and HNI?
In HNI category, how the allotment happens?

1.1. Reena @ Team Chittorgarh.com

| Link|November 7, 2024 4:36:15 PM

Greetings Sir,

HNI is a part/subset of NII category of investors. HNI stands for High Networth individuals who bid for more than Rs. 2 lakhs. NII is a more broader term that includes companies, Hindu undivided families (HUFs), trusts , societies and individual investors (Indian/NRI). The individual investors generally refer to NII category as HNI category.

The allotment process for NII and/or HNI is the same wherein each NII/HNI investor is allotted minimum bid lot as applicable to SNII/SHNI category, subject to availability of shares. In case any shares are left after allotment of minimum bid lot, the same is allotted on a pro-rata basis. Refer to https://www.chittorgarh.com/book-chapter/ipo-allotment/25/ for more details and example.

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