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What is the Meaning of “Basis of Allotment” for Different Categories & what is the process of Allotment?

Basis of Allotment is the process of allocating shares to Applicants of IPO. This allotment of shares is based on conditions which must be satisfied before the shares are issued.

Allotment Process is done by Registrar & Transfer Agents. They identify all Valid Applications from the total subscription data. On basis of total Valid Applications, R&T Agents are processing Allotment of Shares to Different Categories of Investors as per Category Allocation & Category Subscription.

 

For QIB & NII Categories, Allotment is done on Proportionate basis.

 

In case of Retail Category, the Allotment Process is Different as below.

 

First of all, A minimum Lot is being allotted to All Valid Applicants & if any quantity is left after that, then it is being Allotted on proportionate Basis to the Applicants, who has applied for Quantity of More than One Lot. If One Lot is not possible to Allot to All Valid Applicants, then R&T Agents are doing Allotment on Lottery System to the Retail Applicants.


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