Glossary
Basis of allotment: meaning, example and why it matters
The finalised decision on how shares in an oversubscribed IPO are distributed among applicants. Allotment status is usually checked on the registrar's website after it is published.
Worked example
If an IPO category is subscribed 5 times and every applicant bid for one lot, only about 1 in 5 applications can receive shares there, so allotment is decided by a lottery rather than by who applied first.
Illustrative numbers for explanation only. They are not market data, a forecast or a suggestion.
Why it matters
It explains why an application can end with no shares: when demand exceeds supply, a published rule decides who is allotted, and the registrar's website shows the result.
Related terms
See it in practice
Frequently asked questions
Where do I check whether I was allotted shares?
The IPO's registrar and the stock exchanges publish allotment status once the basis of allotment is finalised. Our allotment guide links to the official registrars.
Is this page investment advice?
No. Basis of allotment is explained in general terms with illustrative numbers. Market Dekho is not a SEBI-registered Research Analyst or Investment Adviser.
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