An Initial Public Offering (IPO) is a significant event for a company as it marks its entry into the public markets. It is a process through which a privately held company offers its shares to the public for the first time. IPOs provide an opportunity for investors to become shareholders in a company and potentially profit from its growth. However, the process of IPO allotment involves several steps and can be confusing for investors. In India, a crucial aspect of the IPO process is the allotment of shares to investors, which is determined through a systematic procedure. You can check the IPO allotment status online to know how many shares you’ve been allotted.
But if you are unsure about how to check the IPO allotment status, here’s a quick guide explaining the basics of IPO allotment — and how you can check your status online.
What is an IPO?
An IPO, also known as an Initial Public Offering or public issue, is the process through which a company offers its shares to the public for the first time. The issuing company receives money in exchange for selling its shares to the public, which it uses to further its business objectives.
A company that successfully completes its IPO is listed on stock exchanges like the National Stock Exchange (NSE) and Bombay Stock Exchange (BSE), where interested investors can purchase and sell their shares.
How to invest in an IPO?
Let’s take a closer look at how you can invest in a public issue before learning how you can perform an IPO status check online.
Step 1: Open a Demat account
To invest in the public issue of a company, you need to have an active demat account in your name. A demat account is used to securely store a wide range of securities — including the equity shares of companies — in an electronic format.
Step 2: Choose the IPO application method
Once you have set up your demat account, you can invest in Initial Public Offerings of your choice via the Application Supported by Blocked Amount (ASBA) facility.
Step 3: Fill out and submit the IPO application form
You will be required to fill out and submit an IPO application form in both the methods. Here, you must specify details such as your demat account number, the number of shares, and the price at which you wish to subscribe to the IPO.
Step 4: Create a debit mandate
Once you submit the completed application form, you will be asked to create a debit mandate equivalent to the total value of the shares you subscribed. This mandate will block the funds in your account and render it unusable until the share allotment process is complete. If the shares are allotted to you, the required funds will be withdrawn from your account. If not, the blocked amount will be released.
What is IPO allotment?
Similar to how it is crucial to know how to perform an IPO allotment status check, it is equally important to know what the allotment process entails. Here’s a quick overview of these details.
IPO allotment is the process through which the issuing company assigns shares to eligible investors with the help of its Registrar and Transfer Agent (RTA). The IPO allotment process may vary slightly depending on whether the issue is oversubscribed or undersubscribed.
In the case of undersubscription, all eligible investors are allotted all the shares they applied for. In the case of oversubscription, however, the issuing company either allots shares on a pro-rata basis or uses a lottery system to determine the applicants entitled to share allotment.
How to check your IPO Allotment status on the BFSL app?
If you have a demat account with Bajaj Financial Securities Limited (BFSL), you can quickly check your IPO application status using the Bajaj Securities app. Here’s a step-by-step guide that you can follow to check your IPO allotment status.
- Step 1: Log into the Bajaj Securities app using your client ID and password.
- Step 2: Navigate to the ‘IPOs’ section of the app.
- Step 3: Tap the ‘Order Book’ option to view the IPO allotment status.
If you are allotted shares in the company, the status will be marked as ‘Allotted’. In the case of partial allotment, the app will show the status as ‘Partially Allotted’. If no shares are allotted to you, the status will appear as ‘No Allotment’.
Alternatively, you can also perform a quick IPO status check by visiting the website of the Registrar and Transfer Agent (RTA) of the issuing company. You can also check your IPO allotment status on the websites of the stock exchanges (NSE and BSE). You will be required to enter your Permanent Account Number (PAN) or your 16-digit demat account number to view the IPO allotment status, so make sure to have them handy.
Conclusion
The depository with whom you have a demat account will usually notify you when (and if) shares are allotted. However, in some cases, you may not receive any such notifications. This is why performing an IPO allotment status check online from time to time is important.
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