Quick Summary
- Who decides: the registrar finalises the Basis of Allotment and the stock exchange approves it.
- Retail odds: when demand is too high, winners are picked by draw of lots and each winner gets one lot.
- HNI rules: small HNI (₹2 lakh to ₹10 lakh) and big HNI (above ₹10 lakh) also use a draw for the minimum application.
- Timing: allotment is finalised the day after the issue closes, and shares list on the third working day (T+3).
- On TopFund: the IPO allotment status checker tells you if you got shares using just your PAN.
Yes, for most oversubscribed IPOs, retail allotment is a computerised lottery: each valid application gets one chance at one minimum lot. Applying for more lots, bidding higher or applying on day one does not improve your odds.
You applied, approved the UPI mandate, waited, and got nothing again. Reddit and Quora are full of the same question: is the system rigged?
This guide explains the IPO allotment process step by step, so you know exactly what happened to your application. If you only want to see your result, use our guide on how to check IPO allotment status.
What is the IPO allotment process?
The IPO allotment process is how a company's shares are distributed among investors after the bidding closes. The Registrar to the Issue checks every application, rejects invalid ones and prepares the Basis of Allotment. The designated stock exchange then approves it.
If an IPO is undersubscribed, every valid applicant gets the shares they bid for. If it is oversubscribed, there are not enough shares to go round, so each investor category follows its own set of IPO allotment rules. That is where the lottery comes in.
Is IPO allotment really a lottery? How the retail draw works
Yes. When the retail category is oversubscribed, winners are chosen by a computerised draw of lots, and each winner gets one minimum lot. This is how IPO allotment works for retail investors under SEBI rules, which say allotment to each retail investor cannot be less than the minimum bid lot.
The registrar first works out the maximum number of retail winners: retail shares divided by the lot size. If valid applications exceed that number, a draw decides who gets one lot, as set out in SEBI's General Information Document for public offers.
So is IPO allotment random? Within your category, yes. Every valid application has the same chance, which is why the same myths keep failing people:
| Common belief | What actually happens |
|---|---|
| A different broker gets better allotment | No. All applications reach the same registrar and the same draw |
| UPI is better than ASBA net banking, or the reverse | No. Payment method does not change your chance |
| Applying on day one helps | No. IPO allotment is not first come, first served |
| Applying for more lots raises your odds | No. In an oversubscribed retail category, one application is one entry for one lot |
| Bidding a higher price helps | No. A bid at the cut-off price is always valid; a price bid below the final price is rejected |
| Applying twice from my PAN doubles my chance | No. Bids with the same PAN may be treated as multiple bids and rejected |
| Each family member's own application counts separately | Yes. A separate person with their own PAN and demat account is a separate entry in the draw |
The table above is based on SEBI's rules on cut-off bids and retail allotment in its ICDR FAQs. With the draw explained, the next question is timing: when does all this happen?
How does IPO allotment work, step by step? (T+3 timeline)
Under SEBI's T+3 rule, allotment is finalised one working day after the issue closes, and shares start trading on the third working day. "T" is the issue closing date. The rule has been mandatory for issues opening on or after 1 December 2023, per SEBI's T+3 listing circular.
| Day | What happens |
|---|---|
| T (issue closes) | Retail bidding closes at 5 pm; UPI mandates must be accepted by 5 pm |
| T+1 | Invalid applications rejected; Basis of Allotment finalised before 6 pm and approved by the exchange before 9 pm |
| T+2 | Money for unsuccessful bids unblocked before 4 pm; shares credited to demat accounts before 6 pm |
| T+3 | Shares list and trading starts |
So the IPO allotment date is usually T+1, and the IPO allotment time is the evening of that day, once the exchange approves the basis. You can check your result with your PAN on TopFund's IPO allotment status checker (linked below) as soon as the registrar publishes it.
If your money is still blocked or your shares are missing after T+2: first check with your bank or broker. SEBI's guidance says complaints about allotment, credit of shares or unblocking go to the registrar of that IPO. If that does not resolve it, you can raise a complaint on SEBI's SCORES portal (scores.sebi.gov.in).
How are IPO shares split between QIB, NII and retail investors?
Every IPO splits its shares into investor categories, and each category is allotted separately. For most book-built IPOs by companies that meet SEBI's profitability conditions, at least 35% of the net offer goes to retail investors, at least 15% to NIIs and up to 50% to QIBs.
| Category | Who | Typical share of the net offer |
|---|---|---|
| Retail individual investors (RII) | Bids up to ₹2 lakh | Not less than 35% |
| Non-institutional investors (NII or HNI) | Bids above ₹2 lakh | Not less than 15% |
| Qualified institutional buyers (QIB) | Mutual funds, banks, insurers and similar institutions | Not more than 50% |
Companies that list through the QIB route must give at least 75% to QIBs, with retail capped at 10%. Some IPOs also reserve shares for employees or existing shareholders. The exact split for any IPO is printed in its RHP and price band ad, so check those before you apply.
These categories explain why you can see "retail subscribed 50 times" in IPO subscription data while another category is barely full. SME IPOs follow different rules, which we will cover separately.
How does IPO allotment work in the HNI (NII) category?
HNI allotment now works much like retail: a draw of lots decides who gets the minimum HNI application, and any shares left over are allotted proportionately. SEBI split the NII category into two sub-categories from April 2022 (from July 2022 for issues above ₹10,000 crore).
| Sub-category | Application size | Share of NII portion |
|---|---|---|
| Small HNI (sNII) | Above ₹2 lakh up to ₹10 lakh | At least one-third |
| Big HNI (bNII) | Above ₹10 lakh | The rest |
These changes are recorded in SEBI's April 2022 board memo on public issue measures. In practice, the IPO allotment process for small HNI investors means a ₹10 lakh application has the same chance in the draw as a ₹2 lakh one in the same sub-category.
Continue Exploring
That is also why "Why is HNI IPO not allotted?" is such a common search. Applying with a bigger amount does not buy more entries in an oversubscribed HNI category either. To see that this is how every IPO is actually allotted, you can read its Basis of Allotment.
How to read your IPO's Basis of Allotment
The Basis of Allotment is the official document that shows, category by category, how many people applied and how many got shares. Under the T+3 rule, the allotment advertisement goes up on the registrar, issuer and lead manager websites by 9 pm on T+2, and appears in newspapers on T+3.
In the retail table, look at three columns. "No. of applications received" shows how many people applied at each lot size. "Ratio" shows how many of them got shares, for example 3:94, meaning 3 winners for every 94 applicants. "Shares allotted per bidder" usually shows one lot.
If the ratio is the same for people who applied for one lot and for five lots, that is the draw working as designed. Reading one Basis of Allotment usually settles the "biased PAN" worry for good.
Why didn't I get IPO allotment?
Most of the time you did not get allotment because the category was oversubscribed and your application was not picked in the draw, not because of your PAN or broker. Each IPO's draw is separate, so missing ten IPOs in a row is common when issues are heavily oversubscribed.
There is no evidence that the system is biased against a PAN. The draw is run by the registrar for each IPO and the result is approved by the exchange. What can stop you from entering the draw at all is a technical rejection:
- PAN or demat mismatch: the PAN on the application does not match the demat account.
- Multiple applications: two bids from the same PAN in the same IPO.
- UPI mandate not approved: the mandate was not accepted by 5 pm on the closing day.
- Price bid below the final price: a bid at a specific price that ends up below the issue price is invalid.
If you were not allotted, your blocked money is released on T+2. For practical habits that keep every application valid, see our guide on how to increase IPO allotment chances.
IPO allotment odds example: a 50x oversubscribed retail category
This example shows why applying for more lots does not change your odds when an IPO is heavily oversubscribed. All numbers are illustrative, not from a real IPO.
Assumptions: issue price ₹300, lot size 50 shares (₹15,000 per lot), 7,00,000 shares reserved for retail, 4,20,000 valid retail applications for about 3.5 crore shares in total, so retail is subscribed about 50 times.
| Step | Calculation | Result |
|---|---|---|
| Maximum retail winners | 7,00,000 shares ÷ 50 shares per lot | 14,000 winners |
| Chance per valid application | 14,000 ÷ 4,20,000 | 1 in 30 (about 3.3%) |
| Applied for 1 lot | One entry in the draw | 1 in 30, gets 1 lot if picked |
| Applied for 5 lots (₹75,000) | Still one entry in the draw | 1 in 30, gets 1 lot if picked |
The 5-lot applicant blocks five times the money for the same chance and the same one lot. This is how IPO allotment works in an oversubscribed retail category.
Track IPO allotment and listing on TopFund
- IPO allotment status checker: enter your PAN, pick the IPO and see if you got shares. No login needed.
- Live IPO GMP tracker: see subscription and grey market data for IPOs that are open now on TopFund's live IPO tracker.
- IPO calendar: dates for upcoming issues, closing days and listing days on the IPO calendar.
The bottom line on the IPO allotment process
The IPO allotment process rewards valid applications, not bigger, faster or higher ones. If a category is oversubscribed, a draw decides who gets one lot, and everyone in that category has the same chance.
Focus on what you control: correct PAN and demat details, one application per PAN, and a UPI mandate approved on time.
Check your IPO allotment status on TopFund
Allotment results usually come out on the evening of T+1. Check yours with your PAN on the TopFund IPO allotment status checker, and get new IPO dates and allotment alerts on TopFund's Telegram channel.
TopFund is not registered with SEBI as an investment adviser or research analyst. This article is for education only and is not investment, tax or legal advice. Please consult a SEBI-registered investment adviser or a qualified tax professional before acting. GMP is an unofficial grey market indicator, is not regulated by SEBI or the exchanges, and does not predict listing price or allotment. IPO rules are as of 10 Oct 2026; check the RHP of each IPO for its exact terms.
Frequently Asked Questions
Is IPO allotment first come first serve?
No. IPO allotment is not first come, first served. All valid applications received before the issue closes are treated the same, whether you applied on the first day or the last. In an oversubscribed category, a computerised draw decides who gets shares.
How to get 100% allotment in IPO?
No one can guarantee allotment in an oversubscribed IPO, because winners are picked by draw. You get full allotment only when your category is undersubscribed. What you can do is make sure your application is valid so it enters the draw at all.
What is the 30 day rule for IPO?
In India, it usually refers to the lock-in for anchor investors. Under SEBI rules from 2022, half of the shares allotted to anchor investors are locked in for 30 days from allotment and the other half for 90 days. It does not apply to retail investors.
Can I get allotment in both retail and shareholder quota?
Many IPOs allow eligible shareholders of the parent company to apply in the shareholder quota as well as the retail category, and each application is considered in its own category. The exact conditions differ by IPO, so check the RHP before applying in both.
When can I sell IPO shares after allotment?
You can sell from the listing day. Under the T+3 timeline, shares are credited to your demat account on T+2 and trading starts on T+3. Check your demat holdings on T+2 evening so you know the shares have arrived.
Status says allotted but shares are not showing in my app?
Shares are credited to your demat account by the evening of T+2, and some apps update holdings a day later. If they are still missing after listing day, contact your broker or depository participant first, then the IPO's registrar with your PAN and application number.
Share this post