How IPO Allotment Works (and How to Improve Your Chances)
When an IPO is oversubscribed, not everyone gets shares. Here is exactly how allotment is decided — and the legitimate ways to improve your odds.
Oversubscription and the retail lottery
When demand for an IPO exceeds the shares on offer, the issue is oversubscribed. For retail investors (RII), SEBI mandates that allotment be done by a computerised lottery so every applicant has an equal chance — regardless of how big their application is. That single rule shapes the best strategy.
Legitimate ways to improve your odds
- Apply with one lot, from multiple separate demat accounts — e.g. your own and those of family members (each with their own PAN and bank account). Each PAN gets one entry; multiple applications under the same PAN are rejected.
- Apply at the cut-off price (retail investors can tick “cut-off” to automatically bid the top of the band) so your bid isn’t rejected for being below the final price.
- Avoid technical rejections (see below) — a surprising share of applications are thrown out for avoidable mistakes.
- Apply early, not in the last hour, to avoid UPI-mandate and bank glitches.
ASBA and the UPI mandate
Indian IPO applications use ASBA (Application Supported by Blocked Amount): the money stays in your bank account but is blocked until allotment — you keep earning interest, and only the allotted amount is debited. Retail investors typically apply via UPI through their broker’s app and must approve the UPI mandate in their UPI app before the cut-off, or the application fails.
Common reasons applications are rejected
- Multiple applications on the same PAN.
- Not approving the UPI mandate in time.
- Insufficient balance to be blocked.
- Mismatched bank/PAN/demat details.
Checking your allotment
After the basis of allotment is finalised, you can check status on the registrar’s website (e.g. Link Intime / KFin Technologies) or on the BSE IPO page, using your PAN or application number. If allotted, shares are credited to your demat before listing day; if not, the blocked amount is released.
Retail vs NII: different allotment maths
The equal-lottery rule applies to the retail (RII) category. In the NII/HNI categories, allotment is broadly proportionate — very large applications can receive a pro-rata share — which is why the strategy for big-ticket investors differs from the retail one-lot approach.
Using family accounts — the legitimate way
Because each PAN is one lottery entry, many households apply for a single lot from each family member’s own demat and bank account (their own PAN, their own funds). This is perfectly legitimate. What is not allowed is multiple applications under the same PAN — those are all rejected. CoinWhisperer lets a logged-in user check results across several family PANs at once.
The allotment & refund timeline
Indian IPOs now follow a T+3 schedule — listing three working days after the issue closes. In that window the basis of allotment is finalised, allotted shares are credited to demat accounts, and blocked funds are released for unsuccessful applicants. See our IPO timeline guide for the day-by-day sequence.
What happens if you are (not) allotted
- Allotted: shares appear in your demat a day or so before listing; the blocked amount is debited.
- Not allotted: the ASBA block is lifted and the full amount is available again — you were never actually charged.
- Partial (NII/large): you may get fewer shares than applied for, with the balance released.
Frequently asked questions
Does applying for more lots improve my chance in retail?
No. In an oversubscribed retail category every valid application is one equal entry for one lot. Extra lots do not add lottery tickets.
How do I check whether I got the allotment?
Use the registrar’s site (KFin or Link Intime/MUFG), or the BSE/NSE IPO page — step by step in our allotment-status guide.
When is the money actually debited?
Only on allotment. Until then it stays in your account, blocked but still earning interest, under ASBA. Learn the full application flow in how to apply for an IPO.