When a private company decides to go public, it offers its shares to the general public for the first time through an IPO. Investors interested in buying shares in the IPO submit applications indicating the number of shares they wish to purchase and at what price. The IPO allotment refers to the procedure of assigning shares to investors who have applied for shares during the Initial Public Offering (IPO). Through IPO allotment status, investors can verify the number of shares they have been assigned by the company.
Key Factors Affecting The IPO Allotment:
Subscription Demand: The demand for shares during the subscription period is the main factor influencing IPO allotment. Allotment becomes more competitive if the IPO is oversubscribed, which indicates that more investors want shares than are available.
Retail vs. Institutional Demand: In many IPOs, there is a separate quota for retail investors and institutional investors. The allotment process may prioritise certain categories of investors based on regulatory requirements or the issuer's preferences.
Offer Price: The offer price of the IPO affects demand. If the offer price is set too high, it may deter investors, leading to lower subscription levels. Conversely, a reasonable offer price can attract more investors, increasing demand and making allotment more competitive in the market.
Company Profile and Performance: Investors must research the company's profile, financial performance, growth potential, and industry trends before subscribing to an IPO. A company with a strong track record, solid financials, and promising future prospects is likely to generate higher demand for its shares, influencing allotment.
Market Conditions: IPOs are influenced by broader market conditions, including economic indicators, investor sentiment, and market volatility. Favorable market conditions usually lead to higher demand for IPO shares, while volatile or bearish markets may dampen investor enthusiasm and affect allotment.
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How To Check IPO Allotment Status Online
Visit the IPO Registrar's Website: The registrar for the IPO is responsible for managing the IPO process, including the allotment of shares. Visit the website of the registrar handling the IPO you've applied for. This information is usually available in the IPO prospectus or on the stock exchange website where the IPO is listed.
Locate the IPO Allotment Section: Once on the registrar's website, look for a section related to IPO allotment. This could be labeled as "IPO Allotment Status," "Check Allotment Status," or something similar.
Provide Required Details: You will typically need to enter certain details to check your IPO allotment status. These details may include your PAN (Permanent Account Number), application number, or your DP (Depository Participant) ID.
Submit Information: Enter the required information accurately and submit it.
View Allotment Status: After submitting the required details, the website should display the status of your IPO allotment. It will indicate whether shares have been allotted to you, and if so, how many shares you've been allotted.
Check Multiple Times if Necessary: Sometimes, due to heavy traffic or other technical reasons, the website may not provide the allotment status immediately. In such cases, you may need to check back later or try again after some time.
Check Through Other Channels: Apart from the registrar's website, you can also check the IPO allotment status through other channels such as stock exchange websites, financial news portals, or by contacting your broker.
Wait for Communication: If you've been allotted shares, you'll receive an intimation through SMS or email from the registrar or your broker, informing you about the allotment details and the process for the refund of any excess money.
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Therefore, Investors who are eager to receive their share allocation must verify the IPO allotment status. It makes it clear whether or not their application was accepted and how many shares they have been given. Investors can use this information to plan their next moves following their investment strategies for future choices.