One of the biggest events in a company’s lifespan is the day they go public by offering shares to the general investors in the share market. This not only helps gain more resource and raise capital but also help prove to the industry that the company can rise and survive in strong competition. Other than the offering company, even the investors can gain big from IPOs. It is the reason why investors are eager to know stock allotment status. In this article, we will inform you about the process of IPO allotment status check online by PAN number and how to check IPO allotment status NSE.
IPO Allotment Status Check Online By PAN Number: A Guide
Investing in stocks is a common technique to increase wealth. There are several short- and long-term benefits to investing in an IPO on the stock market. Additionally, an IPO offers investors a fantastic chance to earn profits. If the firm succeeds, investing in its stocks will enhance the overall profits of the investors. Before we go into IPO allotment status NSE, let us understand IPO allotment.
What is IPO allotment?
There are several phases in the IPO process, and it could take weeks before it starts. One phase in this procedure is the allocation of IPOs. Bids that fall within a certain price range are placed when the IPO is announced to be launched. The allocation of shares in an IPO is a very straightforward process. Investors are permitted to submit bids for a specific lot of shares in any IPO they are interested in.
Every bid is made at the set price if shares are issued at a certain fixed price (referred to as the issue price). However, using the book-building approach, the value of shares issued in an IPO may also be determined after assessing the demand for the aforementioned shares. Bids are placed within a price range during the book-building process for the allocation of shares in an IPO, which eventually establishes a price for the share.
In an IPO, shares of a firm are often divided into three categories. Institutional investors get access to a specific batch of shares for IPO investments. The second is for individual investors, and the third is for non-institutional investors. Furthermore, shares in any IPO are offered in lots instead of being allotted individually. Companies that issue shares in IPOs often make sure that each bidder receives at least one lot of the shares that they placed their bid on. They should also know the process of IPO allotment status check online by PAN number.
How Shares Allotment is decided?
It’s crucial to keep in mind that each brokerage business has its standards for choosing who receives an allotment of shares when you consider asking to partake in an IPO. You might be interested in knowing your chances of getting a share allocation while considering investing in an IPO.
Before figuring out how shares in an IPO are distributed to retail investors, it’s crucial to comprehend the idea of lot size. Each application filed by retail investors is in lots, which corresponds to the different small lots of total equity shares that the firm is offering.
If Company XYZ is offering 1,00,000 shares for IPO and they decide that each lot will have 100 shares, then there will be 1000 lots on offer (total number of shares/number of shares in 1 lot). Every time a retail investor makes a bid for shares, they do so in terms of the number of lots. An investor cannot bid for units that are fewer than the lot size, per SEBI regulations. Additionally, bidders are not permitted to place bids on fractional lots, such as 0.3% or 2.4%.
Once all of the bids have been submitted, a computer removes any bids that were not filed correctly. After removing these bids, one can calculate the overall number of successful lot bids and you can check the status through the IPO allotment status check online by PAN number. There are usually two situations that can happen:
- The overall number of bid submitted by all applicants is less than the total number of lots offered. In this instance, all applicants will receive their full allocation.
- If the number of bids exceeds the number of offered lots, then it is called an oversubscription. Now, there can either be a small oversubscription or a large oversubscription. In the event of a slight over-subscription, each accepted applicant would first get one lot of shares, with the remaining shares being distributed proportionally. If the over-subscription happens and each successful candidate cannot even receive one lot of shares, SEBI laws call for a lucky draw for share allotment.
Checking IPO Allotment Status
The process of IPO allotment involves the registrar assigning IPO shares to a potential buyer who has applied for such a subscription. For all big-cap IPOs, the full IPO allotment procedure is finished about a week before the IPO release date. In the instance of small-cap IPOs, this procedure could take longer if the subscription falls short of the required minimum.
The information on the number of shares given to the investor in an IPO is provided by the IPO allotment status. When the information is made public on the website of the IPO registrar on the IPO allotment day, investors can verify the IPO’s allotment status. The information on the number of shares assigned to the buyer in an IPO is provided by the IPO allotment status (IPO).
The registrar of the IPO manages the allotment procedure for the IPO. The day when the public is informed of the allotment status on the site of the IPO registrar is known as the ‘IPO allotment date’. The registrar publishes the IPO allotment calculation on the basis of the relevant document. You can easily check it through the IPO allotment status check online by PAN number.
Bidders can access the official registrar’s website, the BSE or NSE website, or both to check the progress of their IPO allotment status BSE and IPO allotment status NSE. BSE, NSE, CDSL, and NSDL also provide email and SMS updates to bidders on the new IPO allotment status.
How to Check IPO Allotment Status BSE?
If you want to check the status of your IPO allotment through BSE or the Bombay stock exchange, then here are some of the simple steps to follow to check IPO allotment status BSE:
1. Go to the official page of BSE.
2. Go to the bottom of the page and click on Status of Issue Application option.
3. You will be directed to the status-checking application page. Here click on the Equity option.
4. After this, choose the name of the IPO from the drop-down.
5. After choosing the IPO, enter the Application Number or PAN Number and complete the captcha.
6. Finally, click on the search option. You can check the current allotment status after logging in.
How to Check IPO Allotment Status NSE?
This is another important aspect to know besides IPO allotment status check online by PAN number. The verification and allotment status checking system is a simple process on the basis of the IPO application information that has been supplied to the Exchange bidding system. On T+1 day, the bid details submitted will be visible (where T is the date of receipt of the bid on the NSE platform). Data would be accessible for six days following the problem closure date.
This will assist the investor in validating the information and directing the member or bank to change the details as necessary. The exchange will also give the problem the Allotment information that the registrant has given it. Investors must register once by entering their PAN information to make use of this option. After registration, NSE will provide login details for checking one’s allotment status as and when needed. Here are the steps to follow to check IPO allotment status NSE:
1. Go to the official page of Bid Verification page of NSE.
2. After this, enter the login details.
3. If you are a new user, click on Sign Up and fill in the necessary information and create an account.
4. After logging in, you can check the allotment status of your bid on IPO.
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How to Check IPO Allotment Status with Registrar?
One very essential entity for handling IPOs is the registrar of public issues. They are autonomous financial institutions with stock exchange and SEBI registrations. They are chosen by the firm that plans to go public. The basic duties of an IPO registrar include IPO applications processing, shares allocation to applicants by SEBI regulations, refunds processing by ECS or check, and allotted shares transfer to investors’ Demat accounts. You can check your allotment status with the registrar as well. Here are the steps for IPO allotment status check online by PAN number on the registrar’s website:
1. Go to the official link for the allotment status on the registrar’s website. Here, we take the example of KFINTECH.
2. Choose the IPO name in Select IPO drop-down menu.
3. Select PAN option.
4. Fill in the PAN number along with the given captcha.
5. Click on the submit option.
Other Methods of Checking the Status of Allotment
Other than connecting with the registrar or visiting the NSE and BSE websites, one can also check their status of allotment by connecting with their broker or Demat account or to their bank account. One can log in to their broker or their Demat account and see if the shares are credited into their account. Also, one can check their bank account which is connected to the Demat account. If the bid amount is deducted from the bank account, then the shares are bought and credited and if not then the allotment is yet to be completed. Get all the needed information on IPO allotment status check online by PAN number.
Why IPO Shares are Not Allotted?
After you check the share allotment using any of the above-mentioned techniques, either you will be allotted the shares or you will not be credited with any shares in your Demat account. However, not getting the shares is pretty common. Shares in an IPO may not be allotted for one of two reasons.
- Incorrect Information: Due to an incorrect PAN number, an invalid Demat account number, or numerous applications submitted under the same name, your offer was not accepted.
- Not Winning the Draw: In the fortunate share allocation draw, your name was not drawn (in case of a huge over-subscription). In every successful IPO, the oversubscription is so great that the lucky draw mechanism is used and not all investors receive an allocation or an allocation to the whole amount.
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How to Increase the Chances of Allotment?
Now, you may be wondering why shares not getting allotted is pretty common. Well, it is! But, other than the given two reasons, at times common mistakes can also lead to the cancellation of one’s bid. Here are some tips that one can find useful while making bids for IPO and increase the chances of getting allotted shares:
- Do Not Make Big Bids: All retail applications are treated similarly under SEBI’s allocation procedure. If there is over-subscription, there is no point in submitting a large application. Instead, make small bids and utilize the capital for bidding in multiple IPOs.
- Fill out The Forms Carefully: Take your time when filling out the IPO forms. The investor must accurately fill out all fields, including the amount, name, bank information, DP ID, etc. Application for the IPO through ASBA is the safest route to take.
- Use Multiple Accounts: Apply for the IPO using many accounts rather than one account with the highest offer. To apply for heavily subscribed IPOs, one should use numerous IPO accounts to increase the overall chances.
- Avoid Bidding In The Last Moment: Bid on the first or second day if you have already determined that you would apply for the IPO. If an investor registers on the last day, there can be multiple technical difficulties, such as a bank account not responding because of heavy HNI and QIB subscriptions, etc.
- Bidding at The Right Price: The difference between the bid price and cut-off price frequently confuses investors. “Cut-off price” denotes an investor’s readiness to pay whatever sum the business determines. The investor must place a bid in the highest price range after applying for Cut Off.