The excitement of applying for an IPO (Initial Public Offering) can quickly turn into disappointment when you don’t see your name in the allotment list. Checking your IPO allotment status has become a routine for investors, but the anticipation often leads to a mix of hope and heartbreak. In this blog, we’ll break down how the IPO allotment process works, why it sometimes feels unfair, and how you can easily check your IPO allotment status.
Understanding IPO Allotment: Why It’s Not Always in Your Favor
When a company launches an IPO, it invites the public to invest and become a shareholder. However, the number of shares available is often much lower than the demand. This creates intense competition, especially for oversubscribed IPOs, where the number of applicants exceeds the shares available.
For retail investors like us, the allotment process works on a lottery system if the demand surpasses supply. So, even if you’ve done everything right, luck plays a big role in determining whether you get a piece of the pie or end up empty-handed.
How to Check Your IPO Allotment Status?
Checking your IPO allotment status is a straightforward process. Follow these steps to see if you’ve been lucky this time:
Step 1: Visit the Registrar’s Website
- Most IPOs have a designated registrar (like Link Intime or KFin Technologies).
- Head over to their official website and look for the “IPO Allotment” or “Investor Services” section.
Step 2: Enter Your Details
- Provide the required details such as your PAN number, application number, or DP ID/Client ID.
- Ensure the information matches what you used during the IPO application process.
Step 3: View Your Status
- Hit “Submit,” and your allotment status will be displayed.
- If you’re allotted shares, congratulations! If not, don’t worry—there’s always another opportunity.
Common Reasons for Missing an IPO Allotment
- Oversubscription
Many popular IPOs are oversubscribed, meaning the number of shares applied for far exceeds the number available. In such cases, allotment happens on a random basis for retail investors. - Application Errors
Simple mistakes like incorrect PAN details or application numbers can disqualify your request. - Low Probability in High-Demand IPOs
When demand is high, the chances of getting even a single lot become slim. - Multiple Applications with the Same PAN
If you’ve applied multiple times using the same PAN, it might result in rejection.
Why IPO Allotment Feels So Unfair Sometimes
For many, missing out on an IPO feels like losing a golden opportunity. You’ve done your research and invested your time, and yet, the allotment isn’t in your favor. This sense of disappointment often stems from the random lottery system, which doesn’t reward effort or planning but pure luck.
However, it’s essential to remember that investing isn’t just about IPOs. The stock market offers various opportunities to grow your money over time, even if you miss a few IPOs along the way.
What to Do If You Don’t Get Allotted?
Not getting IPO shares is disheartening, but it’s not the end of the road. Here’s what you can do next:
- Invest in the Secondary Market
Once the shares are listed, you can buy them directly from the stock market. Be cautious, though, as prices may open higher than the IPO price. - Look for Upcoming IPOs
Keep an eye on the IPO calendar and prepare for the next opportunity. - Diversify Your Investments
Don’t put all your focus on IPOs. Explore other investment avenues like mutual funds, bonds, or direct equity. - Analyze Your Strategy
Learn from the experience and refine your application process for future IPOs.
FAQs About IPO Allotment Status
Q1: How do I check my IPO allotment status?
You can check your IPO allotment status on the registrar’s website (e.g., Link Intime or KFin Tech) by entering your PAN, application number, or DP ID/Client ID.
Q2: When is the IPO allotment status usually released?
The allotment status is typically available 3–5 days after the IPO application closing date.
Q3: What should I do if I don’t get shares in the allotment?
You can invest in the secondary market after the shares are listed or explore upcoming IPO opportunities.
Q4: Why is IPO allotment based on a lottery system?
In oversubscribed IPOs, where demand exceeds supply, the lottery system ensures a fair and random distribution of shares among retail investors.
Q5: Can I increase my chances of IPO allotment?
Applying through multiple demat accounts in your family can slightly improve your chances, but ensure each application is linked to a unique PAN.