An Initial Public Offering is considered a momentous occasion for any private company. It is a sign that the company has wholly matured to a fully-grown and effective organisation by commanding goodwill in the market and raising public funds. For several venture-capital start-ups, an IPO backs into the list of things they want to achieve by fulfilling the wishes of the investors by delivering an exit.
IPOs are done at a large scale, and they bring about some management changes within the company. With a fresh infusion of funds, companies expand their operations, invest in product development, hire better talent, and so on. This comes at the cost of dilution of the ownership, and the price at which stocks trade indicates the trust investors place on the potential. Now, if the company has matured enough to announce IPO, they have faced many storms.
They may have already established themselves as a leader in the segment under it. The IPO attracts a lot of coverage and fanfare for such companies as numerous potential investors arewilling to join the bandwagon. Before you think about IPO Investment, you need to have the following aspects ready:
- Trading Account
- Demat Account
- Amount in Demat that corresponds to your bid
If you have these basics together, start with the application process. After an IPO closes, the allotment process starts. In case of oversubscription, the shares get allotted to applicants either proportionately or based on a lottery. The merchant bank and the registrar to the issue finalise the basis of allotment. This then gets approved by the stock exchanges and is made available on the registrar’s website to the issue.
The issuing company also intimates the public through newspaper advertisements about the issue price and the basis of allotment.
Steps to check the IPO allotment status
Investors can check the IPO Investmentallotment status on the registrar’s website to the issue. Alternatively, visit the website of the stock exchanges and check the allotment status. You need to keep the PAN or IPO application number or Demat Account number handy.
- Visit the website of the registrar and locate the IPO status tab
- Click on the IPO status tab. There you find the recent IPOs
- Select the IPO for which you have applied
- Here, you findthree options with which you can search the status: Search by PAN, Search by IPO application number, or Search by DPID/Client ID
- If you are electthe PAN, enter the number
- You get a captcha you need to enter and hit the submit button
If allotted, you can see the allotment on the screen.
Other alternatives
Check if the IPO amount gets debited from your Bank Account. If yes, you have been allotted. You can also check your emails and SMS to check if you have received the allotment.
Disclaimer – ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, India, Tel No : 022 – 6807 7100. Please note, IPO related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.