IPO Allotment is the process of allocating shares to investors after the subscription period.
IPO Allotment refers to the process by which shares are allocated to investors after the IPO subscription period ends. It determines the number of shares an investor will receive based on the demand and the number of shares offered. If the IPO is oversubscribed, the allotment process becomes crucial in deciding which investors will get the shares.
Allotment is usually done on a pro-rata basis, meaning the allocation is proportional to the number of shares an investor applied for. In some cases, a lottery system is used for fairness, especially for retail investors.
Investors who do not receive shares will typically have their application money refunded. Successful allotment provides investors with the ownership of the company's stock.
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