Investing in an initial public offering (IPO) can be an exciting way to participate in a company’s growth story. However, the first step is to ensure you have received shares during the IPO allotment process. Here is a step-by-step guide on how to check your IPO allotment status in 2024.
Getting Started with the IPO Allotment Process
Before diving into how to check your allotment status, let’s first understand the IPO allotment process.
What Happens During Allotment?
When a company (for example: Azad Engineering IPO) offers shares to the public through an IPO, it receives a large number of applications from interested investors. However, the total number of shares available is limited. The company must allot or distribute these shares to applicants. This allotment is done through a lottery system. Just submitting an IPO application does not guarantee you will receive shares.
Two Types of Allotment
There are two main types of IPO allotment:
- Firm Allotment – Shares reserved for institutional investors and high networth individuals. This has a higher probability of allotment compared to the retail portion.
- Retail Allotment – Portion of IPO reserved for general public and retail individual investors. Allotment here depends on the subscription level and is more uncertain.
Checking Your IPO Allotment Status
Once the IPO share allotment is complete, investors want to promptly check if they have received an allotment or not. Here are the steps to check your IPO allotment status:
Step 1: Verify If Your DP Account is Enabled for IPOs
The first step is you ensure your Demat and trading account can apply for IPOs:
- Login to your online trading account
- Under services, check if you have activated IPO/NFO services
- Some brokers require a one-time setup to enable this
If your account is not IPO enabled, you will not get allotment of shares even if you applied.
Step 2: Understand the Allotment Process Timeline
The share allotment process takes some time after the IPO closes. Here is the general timeline:
- IPO Closing Date: The date when the IPO subscription period ends
- Basis of Allotment: The allotment is finalized based on SEBI regulations
- Allotment Date: Shares are credited by the registrar into DEMAT accounts
- Listing Date: Date when the IPO shares start trading on the stock exchange
Make sure you check for IPO allotment only after the final allotment date, not immediately after you apply.
Step 3: Check Your Trading Account for Credited Shares
On the allotment date shared in the prospectus, login to your online trading account and DEMAT account. Check if the IPO shares are credited here.
- DEMAT account: Check under the ‘Transaction’ tab for shares credited
- Trading account: Verify if can see the allotted IPO in your portfolio
If you have received an allotment, the shares should reflect in your DEMAT and trading account on the allotment date.
Step 4: Check the Stock Exchange Website
Apart from your trading accounts, allotment status is also updated on the stock exchange websites.
- BSE: Under ‘Status of Issue’ section search for the IPO details
- NSE: Check the ‘Equity IPO Allotment Status’ section
Enter your application details like PAN to check if shares have been allotted under your name.
This status should tally with what is shown in your DEMAT/trading account.
Step 5: Verify the Registrar Website
The official registrar for the IPO allotment also provides application status.
- Go to the registrar website (like Linkintime, Kfintech etc)
- Search for the IPO status page
- Enter details like application number, PAN etc
- It will show number of shares allotted if any
It takes a few days after allotment date for status to show up here. But it allows checking directly from the IPO registrar database.
What If No Shares Are Allotted?
In case you do not receive allotment for an IPO application made, here are the next steps:
- The blocked funds will be auto-unblocked and credited back to your account
- You can apply for the IPO again when it lists and starts trading on the exchange
- Consider applying for future IPOs through the HNI/Institutional category for higher probability
So while checking IPO allotment status, also verify if funds are unblocked in case of non-allotment.
Conclusion
Checking your IPO allotment status promptly is important to take action in case shares are allotted to you. This step-by-step guide summarizes the key points:
- Enable IPO investing for your DEMAT/Trading account
- Wait for allotment date before checking status
- Verify allotment credits in DEMAT, trading account
- Cross-check status on BSE, NSE, Registrars website
- If no allotment, the funds will auto-unblock
Staying informed on the vital allotment date and status can make the difference between successfully investing in a hot IPO versus missing out. So follow these steps for every IPO application you make.
FAQs
How many days does it take to get IPO allotment after closing?
It can take 4-5 working days after the IPO closing date for final allotment to complete. Refer to the red herring prospectus for exact allotment timeline.
Can we sell IPO shares on the allotment date?
No, you can only sell the IPO shares on the listing date when it becomes available for trading on the stock exchanges.
What happens if allotted shares are less than applied?
The excess funds for the unallotted portion of IPO shares is automatically unblocked within 6 working days.
How to check allotment status without a trading account?
You can check the IPO allotment status from the BSE, NSE website by entering your PAN. The registrar website also allows this status check.
Can we apply for IPO again if not allotted the first time?
Yes, you make a new application bid when the IPO lists on the exchange. Allocation here depends on demand versus supply dynamics.
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