Tracking an IPO involves multiple stages, from reviewing an upcoming IPO announcement to checking the final allotment results. Investors generally review company details, subscription information, and allotment updates before understanding their investment position. The IPO process includes several steps such as opening dates, bidding, share allocation, and listing. Understanding these stages can help investors follow the process more clearly. This article explains the key aspects of IPOs, including application steps, allotment status, and important factors to consider before participating in an IPO.
What Is an Upcoming IPO?
An upcoming IPO refers to a company’s planned public share offering that has been announced but is yet to open for subscription. Investors can review details such as issue dates, price band, lot size, and company information before applying.
The IPO calendar may include companies from different sectors. Investors may review the available information and understand the issue details before deciding whether to participate.
Key Stages of the IPO Process
The following are the main stages involved in an IPO:
IPO Announcement:
The company announces its plan to issue shares and provides initial details about the offering.
Draft Filing and Approval:
The company submits required documents containing financial and business information for regulatory review.
Price Band Announcement:
The company announces the price range at which investors can place bids.
IPO Subscription Period:
Investors submit applications within the specified dates. Applications are accepted under different categories, such as retail investors, qualified institutional buyers, and non-institutional investors.
Share Allotment:
After the subscription period closes, shares are allocated based on demand and applicable allocation rules.
Listing:
The allocated shares are listed on the stock exchanges, allowing investors to trade them.
How to Apply for an IPO
The following steps explain the general IPO application process:
- Review the IPO details, including company information, price band, and issue dates.
- Select the number of shares to apply for within the permitted lot size.
- Submit the application through an eligible platform using the required account details.
- Complete the payment process through the applicable application method.
- Track the application and allotment updates after the IPO closes.
Investors may ensure that their account details and required documents are updated before applying.
What Is IPO Allotment Status?
IPO allotment status shows whether shares have been allocated to an investor after the IPO subscription process is completed. It provides details about the number of shares allotted compared to the number applied for.
If an investor receives an allotment, the shares are credited to the linked demat account. If shares are not allotted, the blocked application amount is released according to the applicable process.
How to Check IPO Allotment Status
The following methods may be used to check IPO allotment status:
Registrar Website:
Investors can check allotment details through the official website of the IPO registrar by entering required application details.
Stock Exchange Website:
IPO allotment information may also be available through stock exchange platforms after the allotment process is completed.
Broker Platform:
Investors may check updates through their investment platform, depending on the services provided.
The required details generally include application number, Permanent Account Number (PAN), or other application-related information.
Factors That Affect IPO Allotment
The following factors may influence IPO share allocation:
Subscription Demand:
When the number of applications exceeds the shares available, allocation may be carried out according to applicable rules.
Investor Category:
Different investor categories have separate allocation processes as defined by regulatory guidelines.
Number of Applications:
The final allotment depends on the total number of valid applications received during the subscription period.
Issue Size:
The number of shares offered by the company also affects the allocation process.
What Happens After IPO Allotment?
After shares are allotted, they are credited to the investor’s demat account before the listing date. Investors can then hold the shares or trade them after listing, based on their investment approach.
Investors may monitor company updates and market conditions after listing. Share prices can change due to various factors, including business performance, market trends, and investor demand.
Difference Between IPO Application and IPO Allotment Status
The following table highlights the difference between IPO application and allotment status:
| Factor | IPO Application | IPO Allotment Status |
| Meaning | Request to buy shares in an IPO | Confirmation of shares allocated |
| Timing | During subscription period | After subscription closes |
| Purpose | To participate in the IPO | To check share allocation |
| Information Available | Applied quantity and bid details | Shares allotted or not allotted |
Conclusion
An insight into the IPO process would help investors understand how to navigate each step, starting from analysing the upcoming IPO and its allotment status. There are various steps involved in the IPO process, such as application submission, allotment of shares, and listing, among others. Investors could also consider analysing the firm’s information, issue details, and risks associated with investing in the IPO. Online platforms like 5Paisa offer market information services to investors, which may assist them in tracking the latest IPO news.