IPO Allotment Process, Step by Step

1. Bidding closes

Once the IPO window closes, the exchange compiles the total number of applications and shares bid for, category-wise (Retail, NII, QIB).

2. Basis of allotment is finalised

The registrar, together with the exchange, finalises how shares will be distributed. This usually happens within a couple of working days after closing.

3. Lottery for oversubscribed retail category

If retail demand exceeds the shares reserved for that category, allotment is done by a computerised lottery so that as many applicants as possible get at least one lot, rather than proportionate partial allotment.

4. Refunds and demat credit

Amounts blocked via ASBA for unsuccessful or partially successful applications are released, and allotted shares are credited to the demat account shortly before listing day.

5. Listing day

Shares begin trading on the exchange. The listing price is discovered through the exchange's opening auction, based on actual buy/sell orders — not the grey market premium.

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