How It Works
How IPO Allotment Probability Is Calculated (Conceptual)
This document explains the conceptual approach used to estimate IPO allotment probability. It is intended purely for educational and analytical understanding and does not represent the actual allotment mechanism ... read more
Understanding IPO Subscription Data
IPO subscription data represents the real-time demand for shares in an Initial Public Offering across different investor categories. This data is published by stock exchanges during the IPO bidding period and is widely used for analysis ... read more
Approximate Number of Applications in an IPO
In most IPO discussions, investors often see subscription figures expressed as multiples (for example, 5× or 20×). However, what many people actually want to understand is the approximate number of applications submitted in an IPO ... read more
Demand vs Shares: How Allotment Ratios Are Derived
In an IPO, allotment outcomes are fundamentally driven by the relationship between investor demand and the number of shares available in each investor category. This relationship determines the allotment ratio and ultimately ... read more
Why IPO Subscription Numbers Can Be Misleading
IPO subscription figures are often treated as a direct indicator of allotment chances. However, these numbers can be misleading if interpreted without understanding how demand is structured and reported. This document explains ... read more
Statistical Assumptions Behind IPO Allotment
IPO allotment, especially in the retail category, is governed by probabilistic and statistical assumptions derived from SEBI’s allotment framework. While the actual allotment is executed by registrars, many analytical tools rely on simplified ... read more
Limitations of IPO Allotment Probability Models
IPO allotment probability models are widely used to estimate the likelihood of receiving an IPO allotment based on live subscription data. While useful for setting expectations, these models have inherent limitations due to data ... read more