Paytm IPO: Here's How Shares Get Allotted. Steps To Check Share Allotment Status

With IPOs drawing a huge number of investors, it is important to know that in a situation where issue gets fully subscribed, investors are allotted the same number of shares that they had bid for.

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New Delhi: Digital payments firm Paytm’s Initial Public Offering (IPO) has received a 48 percent subscription on its second day. The institutional investor portion was subscribed 45 percent, the high net worth individual (HNI) portion by 4 percent and the retail investor portion by 1.2 times percent.

Paytm's IPO is two days off from closure, and investors can invest in this issue in these last two days. The allotment is likely to be announced on November 15. The listing date has been set at November 18, according to PTI.  

The company will raise Rs 8,300 crore through 'Fresh Issue', while Rs 10,000 crore worth of shares would be sold by the company through the Offer For Sale (OFS) option. Paytm has raised Rs. 8,235 Crore from its Anchor Investors.

How are shares allocated in IPO?

There are two situations that arise- first is when the total number of successful bids is less than or equal to the number of shares offered by the firm and the other scenario is when the total number of successful bids is more than the number of shares offered by the firm.

With IPOs drawing a huge number of investors, it is important to know that in a situation where the issue gets fully subscribed, investors are allotted the same number of shares that they had bid for. However, in a situation when the issue is oversubscribed, for instance the IPO has been oversubscribed by 20 times and the number of investors has also gone up by 10 times.

In such a scenario, all investors cannot be allocated at least one lot each share as stipulated by the SEBI. In such case, allocation is done through a computerised lottery draw. It is to be noted that because it is an impartial and randomised lottery system, some investors will be lucky to get one lot each, while many others will not be allocated any shares.

How can you check share allotment status?

The bidders can check the share allotment status either on the official registrar's website or the BSE website. The official registrar for Paytm IPO is Link Intime India Private Limited. 

IPO share allotment status on BSE website

Login at direct BSE link — bseindia.com/investors/appli_check.aspx;

Select the company;

Enter IPO application number;

Enter your PAN details;

Click at 'I'm not a robot'; and

Click on 'Submit' button.

Your IPO allotment status will become available on the computer monitor or on the Smartphone screen.

All those investors who have subscribed can go to the Registrar’s website Link Intime.

IPO share allotment status on Link Intime

Login at direct Link Intime web link — linkintime.co.in/MIPO/Ipoallotment.html;

Select the company name;

Enter your PAN details; and

Click the 'Search' option.

Your IPO allotment status will soon become available on your computer or smartphone screen.