What is basis of allotment in IPO?

The Basis of Allotment is a structured process determining how shares are distributed among investors applying for an IPO. The registrar finalises it with the designated stock exchanges in coordination with the issuing company and the lead manager.

Basis of Allotment document is usually available for investors to view one day before the listing day. This document shows:

• Total Number of applications received per Investor Category
• Total number of shares applied per Investor Category
• Subscription Rate per Investor Category,
• Categorisation of QIB, RII and NII based on the number of shares applied for each category
• Number of applications received
• % of applications received per group to total applications
• Total number of shares applied
• % of shares applied per group to the total number of shares applied
• Number of Shares allotted per bidder
• Ratio of bidders allotted shares to total bidders in each group
• Total no. of shares allotted per group

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