In India, the IPO allotment process is indeed lottery-based for retail investors when there is oversubscription. This system ensures fair distribution of shares among all applicants.
The lottery system works through a computerized process managed by the registrar. When an IPO receives more applications than available shares, the system randomly selects applicants to receive shares.
For retail investors in India, the minimum application size is typically ₹10,000-₹15,000. The lottery system applies equally to all applicants within this category, regardless of application size or timing.
Several factors can affect your chances in the IPO lottery, including the level of oversubscription and the number of shares reserved for retail investors. Higher oversubscription means lower probability of allotment.
Indian investors can check their allotment status through the registrar\“s website or their broker\“s platform using their PAN number or application details. |
