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In IPO, the share of allotment is done through SEBI norms. The SEBI share allotment rules say that the minimum bid lot is determined based on the minimum application amount, which cannot pass or fall below 10,000 – 15,000 INR. Previously the range was between 5,000 – 7,000 INR.
Oversubscription is the most common reason for non-allotment of shares in an IPO. Here, each applicant has an equal opportunity to be allotted the shares. If your application is not picked in this lottery system, then shares are not allotted to you and your application amount is refunded.
What is the process of allotment of shares in IPO?
After some days of bidding, the process of allotment of shares in IPO begins. In IPO we cannot bid for any number of shares. The company that is issuing IPO decides the lot size and we can buy those shares only is those lots or their multiple.
What is the minimum amount of shares in an IPO?
Minimum 35\% quota is reserved for retail investors in IPO. After some days of bidding, the process of allotment of shares in IPO begins. In IPO we cannot bid for any number of shares. The company that is issuing IPO decides the lot size and we can buy those shares only is those lots or their multiple.
How to invest in an IPO?
To invest in IPO we need to buy at least one lot of shares. If your bid is higher than 2 lakhs then you will have to apply from HNI category. If number of bids are more than number of lots then we say that IPO is oversubscribed. In this case the lottery system is used to allot the shares.
What are the criteria for allotment of Rii’s in an IPO?
If demand is less than or equal to the offered retail proportion of the IPO shares, then full allotment will be made to the RII’s for all the valid bids. 2. Demand is more than the shares offered If demand is greater than the allocation to the retail proportion of shares offered, then the maximum number of RII’s will be allotted a minimum bid lot.