A modest start-up, for example, will attract small investors or families who are not expecting a large return. Angel investors are a term used to describe these types of investors. However, in order to compete with large-scale enterprises, start-ups will constantly require more funding. This is why private companies frequently decide to go public, called Initial Public Offering (IPO).
Why Companies Issue IPOs?
IPO Allotment is a procedure in which the "registrar to the offer" completes the process of distributing IPO shares to those who have applied for an IPO subscription using a lottery system. It's a basic lottery system that determines who owns the shares. Companies issue IPOs as it can aid in financial cushion, raising capital allows the company to develop, innovate, expand, and take risks.
For all Large-Cap IPOs, the IPO allotment process takes place within one week of the IPO release date. It takes time for SME IPOs only in a few circumstances when the subscription does not reach a certain threshold or for a variety of other reasons. However, in the majority of cases, the allocation status is available within one week.
How to Check IPO Attotment in NSE?
Step 1: Visit NSE website
Step 2: Click on Market Data
A new window will show all the IPOs that are active at that time.
Step 3: Click on the issue
Step 4: New page will be displayed
Under Bid Details, you can get Consolidated Bid Details and NSE Bid Details. The first displays total bids and demand from various factions of shares on the NSE and BSE combined, whilst the latter displays solely NSE bids and their specifics.
How to check live IPO Subscription Allotment in BSE?
Step 1: Visit BSE website
Step 2: Go to Menu
Step 3: From dropdown select Public Issues/OFS/SGB
Step 4: Click on Live public issue for more details
Step 5: Click on BSE Demand Schedule
When you select an active public offering, you will be taken to a website with information about that particular IPO.
The total bids received for an IPO on both the NSE and the BSE can be found by clicking on Cumulative Demand Schedule (here). On both bourses, the figure would be the same.
When the total bids received on the BSE and NSE are added together, the total bids received equals the total bids received.
IPO Allotment Details
IPO Allotment date
The day on which the IPO allotment is made public is known as the IPO allotment date. The allotment details can be found on the registrar's official website for the specific IPO. It displays stock owners and takes about a week to complete the allotment procedure.
IPO Listing date
The first day a new IPO is listed on the stock exchanges is referred to as the listing date. The shares of the firm that released an IPO are listed on the public exchanges, such as the NSE and BSE, on the listing day. This is when the stock market opens for business.
What is IPO allotment Process?
A registrar of an IPO here uses a lottery system to distribute the company's shares to the investors who applied for them. This lottery mechanism determines who owns which shares, and the procedure usually takes a week.
The bid details or demand graph of an initial public offering (IPO) helps investors understand the total bids received for a new public offering as well as demand from different quotas of investors - Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), and Retail Individual Investors (RIIs) (RIIs)