CAN is a document sent to investors confirming share allotment details in an IPO, including quantity, price, and payment terms.
Confirmation of Allocation Note (CAN) is an official document issued to investors, particularly institutional or high-net-worth individuals (HNIs), who have been allotted shares in an Initial Public Offering (IPO) or other capital market offerings.
The CAN is typically sent after the basis of allotment is finalised, but before the actual transfer of shares. It confirms the number of shares allocated, the price at which they have been allotted, and the payment instructions, if applicable.
Receiving a CAN signifies that the investor's bid has been successful and helps them prepare for further steps such as fund settlement and share credit to their Demat account. It is a critical part of the IPO process in ensuring transparency and clarity in share allocation.
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