Maximum allottees are the highest number of investors who can be allotted shares in an IPO, ensuring fair distribution, especially during oversubscription.
Maximum allottees refer to the highest number of investors or applicants who can be allocated shares in an Initial Public Offering (IPO) based on the subscription. This limit is set by the company issuing the IPO, often to ensure a broad and diverse investor base.
It is particularly relevant when there is an oversubscription, and the company needs to decide how many applicants can receive shares. The allocation process is typically done in proportion to the number of shares subscribed for, subject to the maximum allottees limit.
Example: If the IPO allows a maximum of 10,000 allottees, only that number of investors will receive shares, even if more people apply.
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