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SME IPOs allocate shares in fixed trading lots, with each eligible applicant get at least one lot if conditions allow.
Example: If a company issues 50,00,000 shares and the lot size is2,000 shares, a maximum of 2,500 applicants can receive one lot each.
Retail Investors: If the total applications exceed the available shares, the maximum number of eligible retail investors is calculated by dividing the total shares offered in the retail category by the lot size.
Example:
If more than 200 investors apply, allotment is determined by lottery to ensure fairness. The process is entirely computerised, and some applicants may miss out if oversubscribed.
Categories: Includes Non-Institutional Investors (NIIs) and Qualified Institutional Bidders (QIBs) who apply for shares worth more than ₹2 lakh.
Proportionate Allotment: If oversubscribed, shares are allotted proportionally to the number of applied shares.
Example:
If the NII category is oversubscribed 10 times, an applicant requesting 10 lakh shares will receive1 lakh shares(10%).
