Investing in an Initial Public Offering (IPO) can be an exciting way to participate in a company’s growth story. After you’ve submitted your application and the subscription period closes, the next crucial step is checking your IPO allotment status. This article provides a simple guide on how to do that and what to do once you know the outcome.
How to Check Your IPO Allotment Status
The process of checking your allotment is straightforward and can be done through a few different avenues. Remember, the allotment is the process by which shares are distributed to applicants, and this typically happens within a few days of the IPO’s closure.
1. Through the IPO Registrar’s Website
The registrar is a crucial entity that manages the IPO process, including the application and allotment. This is often the most reliable way to check your status.
- Find the Registrar: The name of the IPO registrar is mentioned in the company’s IPO prospectus and is also widely reported in financial news. Common registrars include MUFG Intime India, Link Intime, Kfintech, and Bigshare.
- Navigate the Website: Go to the official website of the registrar. Look for a section dedicated to “IPO Allotment Status” or “Public Issues.”
- Enter Your Details: You will typically need to select the IPO from a dropdown menu and enter one of the following details:
- PAN (Permanent Account Number): Your unique PAN card number is a standard identifier.
- Application Number: The unique number you received when you submitted your IPO application.
- DP Client ID: This is your Demat Account number.
- Submit and View: After entering the required information, click “Submit” to view your allotment status. The portal will display whether you have been allotted shares and the number of shares credited.
2. Through the Stock Exchange Websites (BSE & NSE)
The major stock exchanges in India, the BSE and NSE, also provide a facility to check your IPO allotment status.
- BSE Website: Visit the BSE IPO allotment page. Select “Equity” as the “Issue Type.” Choose the name of the company from the dropdown menu and enter your Application Number or PAN. Click “Search.”
- NSE Website: Go to the NSE website and find the IPO section. You will likely need to log in with your PAN and application details to check the status.
3. Through Your Broker or Demat Account
Many brokerage firms and Demat account providers offer a dedicated section on their platforms or mobile apps to check your IPO bid and allotment status. Log in to your account and navigate to the IPO or holdings section to see if the shares have been credited.
Part 2: What to Do Next
Once you’ve checked your allotment status, there are two possible outcomes, each with its own set of next steps.
Case 1: You Have Been Allotted Shares
Congratulations! If you’ve been successfully allotted shares, they will be credited to your Demat account a day or two before the listing date.
- Check Your Demat Account: Confirm that the shares have been successfully credited to your Demat account.
- Prepare for Listing: The listing is the day the company’s shares start trading on the stock exchange.
- Understand the Market: Pay attention to the Grey Market Premium (GMP), which gives an unofficial estimate of the expected listing price. However, remember that GMP is purely speculative and can change rapidly.
- Develop a Strategy: Decide whether you want to sell your shares on the listing day to book profits or hold them for the long term. Many investors choose to sell on the listing day, especially if there is a significant listing gain, to recover their initial investment and secure profits. Alternatively, you can sell a portion of the shares to recoup your capital while holding the rest for potential future growth.
- Trade Strategically: On the day of listing, trading typically starts later than the regular market opening. Be mindful of this and execute your trades based on your predetermined strategy.
Case 2: You Were Not Allotted Shares
Given the high demand and frequent oversubscription of IPOs, it’s very common to not receive an allotment. The process for retail investors in an oversubscribed IPO is often based on a lottery system, meaning it’s a matter of luck.
- Understand the Refund Process: If you were not allotted shares, the funds that were blocked in your bank account via the ASBA (Application Supported by Blocked Amount) process will be unblocked. This process is initiated by the registrar and usually happens within a day or two of the allotment being finalized.
- Check Your Bank Account: Monitor your bank account to ensure the funds are unblocked and available for use. If you experience a delay, you can contact your bank or the IPO registrar for assistance.
- Assess Other Opportunities: Don’t be discouraged! You can now look for other investment opportunities. Consider investing in the company’s stock after it lists on the exchange if you still believe in its long-term potential. You can also explore other upcoming IPOs or diversified investment instruments.
