Bandhan Bank Limited IPO Message Board (Page 15)

As far as the retail individual investors (RIIs) are concerned, the process of allocation of shares is different. The maximum amount which retail investors can apply per IPO is Rs. 2 lakh. In order to determine the total demand for shares in the retail investor category, all the applications are grouped together and the total number of applications are calculated. If the number of applications are more than the number of shares offered for retail investors, the maximum RIIs who are eligible for the allotment of the minium bid lot are determined.

The total number of equity shares available for allotment to RIIs is divided by the minimum bid lot. This gives the maximum number of RIIs who can be allotted the shares.

For example - If shares worth Rs. 20 lakh need to be allotted to the retail segment and the minimum lot size is Rs. 10,000, only a maximum of 200 applicants will be allotted the shares with the minimum lot of Rs. 10,000.

If the number of RIIs exceed the maximum RII allottees, the RIIs (in that category) who will be eligible for the minimum bid lot will be determined on the basis of draw of lots. This is a computerised process and hence there is no room for partiality.

http://www.financialexpress.com/market/how-does-ipo-allotment-to-retail-investor-happen-here-is-cutting-through-the-confusion/831949/

Thanks Jan. It is not straight forward. I will go through link to understand process of allotment. hope I get my answer.

Hai,
Every eligibile applicant must be given one lot (40shares) irrespective of the number shares he/she has applied. The left over shares will be allotted additionally to the applicants of 2 lots and more. That is why they got more than 40 shares.

I take all tat into consideration. But then why it is not allotted proportionately .

People applied for 5 lots. Some got 5 out of 5. Some 3 out of 5 and some got 1 out of 5.

Somebody got 13 out of 13 lots and I got 2.5 lot out of 13.

Thanks everybody who is trying to explain.