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What Happens when an IPO is oversubscribed in India?


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When the IPO oversubscription happens, the applicant may or may not get the allotment of the shares or the number of lots applied. Depending on the category in which you have applied, the IPO allotment differs in oversubscription case:

  1. IPO Share Allotment to Institutional Buyers (QIB)

    In the QIB category, shares are allocated proportionally. So, if the issue is subscribed by 5 times, then an applicant who has applied for 10 lakh shares will receive 2 lakh shares only.

  2. IPO Share Allotment to High Net worth Investors (HNI)

    HNI also receives allotment on a proportionate basis.

  3. IPO Share Allotment to Retail investors (RII)

    Case 1: RII Applications are Less or Equal to Offered Lots

    In this case, each applicant first gets at least minimum 1 lot. And, the rest available lots are allocated proportionally.

    Case 2: RII Applications are Greater than Offered Lots

    In this case, the allotment is done through a computerized draw to pick applicants for IPO allotment.



1. Bidyut   I Like It. |Report Abuse|  Link|July 15, 2021 10:04:19 PMReply
After getting the ipo why I get confirmation payment massage on my phonepe

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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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