An IPO (Initial Public Offering) is a process through which a company raises capital by selling its shares to the public for the first time. In this article, we will conflict on “What is IPO allotment?”

IPO allotment refers to the process of allocating shares to investors who have applied for shares during an IPO. The IPO allotment process typically involves several steps. First, investors submit applications to purchase shares in the IPO. The applications may be submitted online, through a broker, or through a bank. The application typically includes information such as the number of shares the investor wishes to purchase, the price at which they are willing to purchase the shares, and other relevant information.

Once the application period has closed, the issuer and underwriter of the IPO will review the applications and allocate shares based on a variety of factors, including the number of shares available and the demand from investors. The allocation process is typically done on a pro-rata basis, which means that investors are allocated shares based on the number of shares they applied for relative to the total number of shares available.

Once the shares have been allocated, the issuer will typically release a list of allottees, which is a list of investors who have been allocated shares in the IPO. Investors who have been assigned shares will typically receive an allotment letter, which confirms the number of shares assigned to them and the price at which the shares will be purchased.

Investors who have not been allocated shares will typically receive a refund of their application money. The refund process typically takes a few days, and investors may receive their refund either through their bank account or through their broker.

It is important to note that IPO allotment is a complex process that involves a number of factors, including the number of shares available, the demand from investors, and the overall market conditions. As a result, not all investors who apply for shares in an IPO will be allocated shares.

Conclusion

IPO allotment is the process of allocating shares to investors who have applied for shares in an IPO. The process involves several steps, including the submission of applications, the allocation of shares, and the release of an allotment list.While not all investors will be assigned shares, those who are will typically receive an allotment letter confirming the number of shares assigned to them and the price at which the shares will be purchased.