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Does IPO gets allocated to people who apply first?

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IPO allotment doesn't happen on the basis of who applied first or the first come, first serve basis. It depends on the response to the IPO from investors. If the IPO has not received good response from the investors and it is under subscribed then you may get allotted as many lots you have applied for. In other case, if the IPO is oversubscribed owing to high demand from investors, then allocation of shares to retail investors depends on the total number of shares available in the retail quota divided by the minimum lot size. So, if 10 lakh shares are available for retail investors and 2000 shares is a lot size then 500 applicants will get the shares. If the applicants are more than 500 then a lottery is used to select the applicants for allotment.

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1. Animesh Kumar   I Like It. | Report Abuse |   Link | Dec 31, 2021 2:23:42 PM Reply
I've one question related to oversubscription of IPO. For simplicity, let's assume there is 1 share in a lot and there are 50 shares and hence 50 lots available in retail category. Now 200 applications come for these shares and minimum lots which could be allotted is 1. As per the rule, lucky draw would be done. Suppose in the first lucky, application of Mr. A is selected who has applied for 10 lots. Will he get all 10 lots because there are still more than 10 shares available when his name got selected or he would get just one lot because there is oversubscription ?
Now if the answer is he would get only 1 lot as there is oversubscription, then whether his name would be removed from the lucky draw for further allocation or his name would still be considered as he applied for more lots ?
I think it's a common question but I couldn't find this on the Internet.


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More IPO Allotment Questions...

  1. How many days it usually takes to get an allotment of an IPO?
  2. Will the share be deposit to my account when the allotment status shown?
  3. Why do I get redirected to other websites to when I click 'XYZ IPO Allotment Status' link?
  4. When I check allotment status on your website it shows x amount of shares allocated to me, but I don't see them in my Demat account. Why is it so?
  5. How can I get confirm allotment?
  6. What is the formula for shares allotment in an IPO?
  7. How do I know the allotment status of shares I applied in an IPO?
  8. I apply for every IPO, but get allotment from some IPOs. Good IPOs don't get alloted to me. Where's the problem?
  9. How to know whether I have been allotted shares and amount refunded?
  10. How to know the allotment status of old IPOs?
  11. I have allotted one lot of shares in an IPO. Now, what to do next?
  12. I apply for an IPO on first day of issue, morning time on cut-off rate but most of the time I am not allotted shares. Please guide me, what to do, what to follow?
  13. Is there any advantage for RII (retail investors) if he applies for maximum permissible no. of lots rather than minimum no. of lots in a single application in case of a highly oversubscribed IPO?
  14. Does applying for IPO at upper price band stands more chance of allotment than lower price band?
  15. Does IPO gets allocated to people who apply first?
  16. I am receiving emails and sms of allotment and application made through ASBA even though i have never applied for such IPO? How and where to track such application and lodge complaint?
  17. How IPO allotment happens for NII category if it's oversubscribed?
  18. Why I haven't got allotment in most of the IPO's?
  19. If my fund is blocked in the account, does it mean I will surely get the IPO allotment?
  20. Even if a retail investor applies for Rs 2 Lakhs, allotment is limited to only one lot. Why is it that way?
  21. Why I didn't get IPO allotment?
  22. How to get Confirmed IPO Allotment?
  23. What Happens when an IPO is oversubscribed in India?
  24. When the NII (HNI) quota in an IPO unsubscribe, who gets the remaining shares?

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