A Complete Guide to IPO Allotment & How to Improve Your Chances (2025 Guide)
The world of Initial Public Offerings (IPOs) is undeniably exciting. For many investors, applying for an IPO feels like participating in a high-stakes lottery—“Will I get the allotment or not?”
But here’s the truth: IPO allotment is not luck-based. It is a structured, rule-based, computerized process regulated by SEBI (Securities and Exchange Board of India) to maintain fairness.
If you understand how the allotment system works, you can dramatically increase your chances of receiving shares—legally and strategically.
This guide breaks everything down in simple language.
What Is IPO Allotment?
IPO allotment is the process of distributing a company’s shares to investors who applied during the IPO window. When demand is higher than the available number of shares (oversubscription), a fair computerized lottery mechanism is used.
This system is managed by:
✔ Registrar of the IPO (KFin Technologies, Link Intime, etc.)
✔ Stock Exchanges (NSE, BSE)
Want to learn how the financial markets work? Read our guide on
Primary and Secondary Markets.
IPO Allotment Process: Step-by-Step (Explained Simply)
1. IPO Application Window Closes
All investor applications are collected and sent to the registrar.
2. Application Verification
Registrars check for errors or rule violations such as:
✔ Duplicate applications
✔ Multiple applications with the same PAN
✔ Insufficient funds
✔ Invalid Demat details
Such applications are rejected as per SEBI rules.
3. Computerized Lottery (Random Allocation)
If the IPO is oversubscribed, a random lottery decides which applicants receive shares. This system ensures zero human interference.
4. Basis of Allotment (BoA)
Registrars prepare an official document summarizing:
- Total subscriptions
- Investor category-wise divisions
- Exact allotment ratio
This is approved by NSE/BSE.
5. Refund / Fund Unblocking
If you do not receive any allocation, your ASBA or UPI-blocked amount is unblocked automatically within 2–4 working days.
6. Shares Credited to Demat
Successful investors receive shares in their Demat account one day before listing.
Investor Categories & Priority Explained
Your allotment chances depend heavily on the category under which you apply:
1. Retail Individual Investor (RII)
- Applications up to ₹2,00,000
- 35% quota reserved
- Maximum probability of allotment
- Best category for small investors
2. Non-Institutional Investor (NII / HNI)
- Applications above ₹2 lakh
- 15% quota
- Heavily oversubscribed in strong IPOs
- Lower allotment visibility compared to retail category
3. Qualified Institutional Buyers (QIBs)
- Mutual Funds, Banks, FIIs
- 50% quota
- Plays major role in deciding IPO demand
Want to explore NII investing? Read our post on
HNI Investing Strategies.
How to Increase Your Chances of IPO Allotment (100% Legal Methods)
1. Apply Under Retail Category (RII)
This gives you the highest probability of getting an allotment due to the 35% reserved quota.
2. Use Multiple Demat Accounts Across Family Members
Apply using different:
- PAN numbers
- Demat accounts
- Bank accounts
This multiplies your chances.
Note: Multiple applications using the same PAN will be rejected.
3. Apply for Only 1 Lot per PAN
In oversubscribed IPOs, applying for more lots does not increase your chances.
Applying for minimum lot size is the smartest strategy.
4. Apply Early, Not at the Last Minute
Last-day UPI delays or bank server issues can cause application failure.
5. Keep Sufficient Funds in Your Account
UPI mandate or ASBA failure = instant rejection.
6. Apply Through Reliable Brokers
Use trusted platforms like Zerodha, Upstox, Groww, Angel One for fewer technical issues.
For upcoming News, visit:
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What Happens After the Allotment?
If You Get the Allotment:
Shares appear in your Demat account 1 day before listing.
You can choose to:
✔ Sell on listing day for listing gains
✔ Hold for long term based on company fundamentals
If You Don’t Get the Allotment:
Your application amount is unblocked and returned automatically.
Don’t worry—there are new IPOs every month!
Final Thoughts
IPO allotment may feel like a lottery, but it’s actually a structured, rule-based system.
If you apply strategically—especially through the retail category and multiple PANs—you can significantly increase your chances.
Ready to track your next IPO?
👉 Use the Lumechronos IPO Tracker for allotment, listing, and gain tracking.
References (Authoritative Sources)
- SEBI – Public Issue Rules & Guidelines
https://www.sebi.gov.in/legal/regulations - NSE India – IPO Allotment Process Overview
https://www.nseindia.com - BSE India – Investor FAQs
https://www.bseindia.com - KFin Technologies – IPO Allotment & Registrar FAQ
https://kfintech.com - Link Intime – IPO Allotment Procedure
https://linkintime.co.in
Disclaimer
This article is for educational purposes only. It is not financial advice. Always consult a SEBI-registered investment advisor before making investment decisions.
Frequently Asked Questions (FAQs)
Q1. How is IPO allotment done?
Allotment is done through a computerized lottery system approved by SEBI and executed by the registrar.
Q2. How long does IPO allotment take?
Typically 3–7 days after IPO closure.
Q3. Can I get a full refund if I don’t get shares?
Yes. Your blocked money is automatically refunded/unblocked.
Q4. Why didn’t I get any allotment?
Common reasons:
- IPO oversubscription
- Single PAN application
- Last-day UPI delay
- Wrong Demat details
Q5. Is IPO allotment first-come, first-served?
No. It is NOT based on timing.
All applications during the window have equal opportunity.
