How Oversubscription Affects You

Oversubscription means demand exceeds supply. Example:

• Company offers 1 lakh shares.
• Receives applications for 10 lakh shares.
• So it’s oversubscribed 10 times.

Example: Basis of Allotment for a Popular IPO

In this example, retail investors are 15 times oversubscribed, so the chance of getting even one lot is 1 in 15.

Allotment: Lot System

For retail investors, allotment happens in lots.
 ✅ Minimum 1 lot if selected in the draw.
 ✅ No partial shares — always in lots.
 ✅ If the IPO is undersubscribed, you may get full shares.

Important: Rounding Off

Sometimes, leftover shares are adjusted to ensure the total matches exactly.
 ✅ Small extra shares may be given to random applicants.

How to Read a Basis of Allotment Table

Here’s what a real BoA looks like (simplified):

How to Check BoA for Any IPO

 ✅ Go to the registrar’s website (Link Intime, KFintech, Bigshare).
 ✅ Find the IPO.
 ✅ Click “Basis of Allotment PDF”.
 ✅ Download and read it.

Some brokers also show the BoA in their IPO section.

Common Questions: Why Didn’t I Get Shares?

 ✅ Too much demand: Oversubscription lowers your chance.
 ✅ Wrong details: Invalid PAN or Demat means rejection.
 ✅ UPI delay: Mandate not approved on time.

Tips to Increase Chances

 ✅ Apply with cut-off price.
 ✅ Don’t bid partial price.
 ✅ Use multiple family PANs if possible (each needs unique Demat).
 ✅ Approve UPI mandate early.

Sample IPO Basis of Allotment: Real-Life Example

Let’s say Company ABC’s IPO received 20 lakh retail applications for 2 lakh shares.

Oversubscription: 10x

This means:

• 1 lot = 50 shares
• 40,000 lots available for retail
• 4 lakh applications vs 40,000 lots
• 1 in every 10 investors will get 1 lot

Basis of Allotment vs Allotment Status

 👉 BoA: Big picture for all investors.
 👉 Allotment Status: Your individual result.

Always check both!

Table: Where to Find BoA

Important Do’s & Don’ts

 ✅ Always read BoA to learn how fair the allotment was.
 ✅ Be patient — sometimes updates are delayed.
 ✅ Plan your listing day sell or hold strategy.
 ❌ Don’t panic if you don’t get allotment — that’s normal in hot IPOs.

Conclusion

The Basis of Allotment is your roadmap to understanding how IPO shares are distributed.
 By reading this document, you become a smarter investor, know exactly how your chances were calculated, and stay informed for the next IPO opportunity.

✅ FAQs (10)

Q1: What is Basis of Allotment in IPO?
 👉 It shows how shares are distributed among investors.

Q2: Where can I find BoA?
 👉 Registrar’s website or your broker’s IPO page.

Q3: How does oversubscription affect allotment?
 👉 Higher oversubscription means lower chances.

Q4: What is the ratio in BoA?
 👉 It shows how many applicants get 1 lot.

Q5: What is lot size?
 👉 Minimum number of shares you can apply for.

Q6: Can I get partial lots?
 👉 No, always in full lots.

Q7: What happens if I don’t get shares?
 👉 Money is refunded automatically.

Q8: What is a registrar?
 👉 A SEBI-approved company that manages IPO applications.

Q9: What if BoA shows a mistake?
 👉 Contact your broker or the registrar immediately.

Q10: Does SEBI monitor BoA?
 👉 Yes, all allotment must follow SEBI rules.