IPO Basis of Allotment

Basis of Allotment is a document containing the basics on which Equity Shares are allotted to successful bidders.

Basis of Allotment (or Basis of IPO Stock Allocation) is a document published by the registrar of an IPO after finalizing the share allocation as per SEBI guidelines. The total bids received are combination of different categories i.e., Qualified Institutional Buyers (QIBs), Non-Institutional Buyers (NIBs), Retail, etc. Over subscription ratios are calculated for each of the categories against the shares reserved for particular categories in the offer document. Basis of allotment document is finalized according to the number of valid applications received, total number of share applied, ratio of the allotment and number of shares allocated to the applicants.
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