I apply for every IPO, but get allotment from some IPOs. Good IPOs don't get alloted to me. Where's the problem?

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Now a day's IPOs have gained a lot of interest among retail investors. And therefore we see a lot of people applying for IPOs of good companies and issues getting oversubscribed. While applying for good IPOs is right but there is also a chance of not getting allotment due to oversubscription. It is because every IPO has a predetermined portion for different categories of investors like- Qualified Institutional Buyers(QIB), Non-institutional investors (NII), Retail individual investors (RII) and Employees etc. The portion for retail investors is 35% of the total shares on offer.

Suppose, ABC IPO has 2,00,000 shares on offer for retail investors. The minimum lot size is 20 and say 2000 retail investors apply for it. When an IPO is oversubscribed, allotment happens as per SEBI guidelines. The total number of shares on offer for retail investors is divided by lot size i.e. 2,00,000/20= 1000 lots. So only 1000 applicants out of 2000 will get an allotment. The applicants are then selected for allotment based on a lottery. Whether you applied for the IPO on first day or the number of lots applied doesn't matter.

So, there's no problem with your application, it's just that your luck is favoring on some IPOs and not in others. So, keep applying for good IPOs and hope for the best.

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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?

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