![]() ![]() ![]() A lot size is determined by the company and mentioned in the application form.Īs per Sebi norms, a person cannot bid for shares less than the lot size. The equity shares in an offering are divided into small lots and retail investors apply in lots, instead of number of shares. The remaining available shares, if any, shall be allotted on a proportionate basis. In the case of oversubscription, investors are keen to know how many shares they will finally get compared to the numbers they had bid for.Īccording to Sebi, the allotment to each retail individual bidder shall not be less than the minimum bid lot, subject to the availability of shares in the retail individual portion. Things get complex when an issue is oversubscribed - the number of applications is higher than the shares available for allotment. If the issue falls short even after an underwriter’s assurances, the IPO is scrapped and the money is returned to bidders. The allotment is based on rules set by the Securities and Exchange Board of India (Sebi), the capital market regulator.įor example, if an issue is fully subscribed, then the investors are allotted the same number of shares that they had bid for. Sebi insists that an issue must be subscribed at least 90 percent for it to list. What is the allotment process for an IPO?Įssentially, an allotment process is a way by which investors are issued the shares of the company whose IPO they subscribed to. Unlocking opportunities in Metal and Mining.Sustainability 100+ Pharma Industry Conclave.Headwinds and Tailwinds Hitachi Social Innovation.Life Insurance Made Simple Future Of Mobility.Interview Series Business In The Week Ahead. ![]()
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