IPO Allotment Process Explained – Basis of Allotment & Lottery

How IPO allotment works in India: basis of allotment, the retail lottery when an IPO is oversubscribed, NII and QIB allotment, refunds and the T+3 listing timeline.

Basis of allotment

After bidding closes, the registrar to the issue validates all applications and, together with the stock exchange, finalises the basis of allotment for each investor category.

Retail allotment when the IPO is oversubscribed

If the retail portion is oversubscribed, SEBI rules require that as many retail investors as possible receive the minimum bid lot. Successful applicants are picked by a computerised lottery, so applying for more lots does not improve your chances in the retail category.

NII (HNI) and QIB allotment

In the NII category, small NII (₹2–10 lakh) and big NII (above ₹10 lakh) portions are allotted separately; each successful applicant gets at least the minimum NII application size, decided by draw of lots when oversubscribed. QIB allotment is proportionate.

IPO timeline after closing (T+3)

• T+1: basis of allotment finalised.
• T+2: funds unblocked for unsuccessful bids, shares credited to demat accounts.
• T+3: shares list on NSE/BSE.

IPO Allotment Process Explained – Basis of Allotment & Lottery IPO FAQs

Does applying for more lots increase retail allotment chances?

No. In an oversubscribed retail portion each successful applicant usually gets one lot, picked by lottery.

When is IPO allotment status available?

Usually on the evening of T+1 (the working day after the issue closes) on the registrar's website.