How IPO allotment works: lottery, categories and your chances
Who gets how much
The shares on offer are split into categories. Broadly, QIBs (institutions) get up to 50%, non-institutional investors (NII) at least 15% and retail individuals at least 35% when the company is profitable. Each category is allotted separately, so heavy demand in one category does not help another.
Retail: the lottery
If retail demand is higher than the shares reserved, allotment is done by a computerised lottery run on the registrar’s system, usually one lot per winning application. Example: a retail quota that is subscribed 20 times means roughly one in 20 valid applications gets a lot. Applying through more family accounts (each with its own PAN) gives more tickets, not a higher chance per ticket.
Timeline (T = issue closing day)
- T+1: the registrar finalises the basis of allotment.
- T+2: shares are credited to demat accounts and unused money is released.
- T+3: the shares list on the exchange.
How to check
Open the registrar’s website (named in the offer document), pick the IPO and enter your PAN or application number. Our allotment page links to the official registrar pages.
If you are not allotted
Nothing is debited; the blocked amount is released in your bank account. You can buy the stock after listing at the market price if you still want it.
Frequently asked questions
Does applying early improve my chances?
No. In a lottery, the time you apply within the open period does not matter as long as the application is valid.
Why was my application rejected?
Typically a UPI mandate that was not approved, mismatched PAN or demat details, or a duplicate application on the same PAN.
Last updated 2026-10-20. Information only, not investment advice.