InvestorQ : What is basis of allocation or basis of allotment in an IPO?
swati Bakhda made post

What is basis of allocation or basis of allotment in an IPO?

Answer
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Sam Eswaran answered.
2 years ago


After the closure of the issue, the bids received are aggregated under different categories i.e., firm allotment, Qualified Institutional Buyers (QIBs), Non-Institutional Investors (NIIs), Retail Individual Investors (RII), etc. Allotment to QIBs and NIIs is done on a proportionate basis. However, the allotment to each retail individual investor shall not be less than the minimum bid lot, subject to availability of shares in retail individual investor category, and the remaining available shares, if any, shall be allotted on a proportionate basis.