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When Is IPO Allotment Finalized?

Overview

IPO allotment is not instantaneous. It follows a defined, regulator-approved process that takes place after the IPO subscription period closes. Understanding when IPO allotment is finalized helps applicants set realistic expectations and avoid confusion or misinformation.

IPO Subscription Closure

The IPO allotment process begins only after the issue closes. During the subscription period, bids are merely collected and modified. No allotment decisions are made at this stage.

Once the IPO closes:

  • No new bids are accepted
  • Final demand numbers are compiled
  • Invalid or rejected applications are filtered out

At this point, the allotment process officially starts.

Basis of Allotment Finalization

The Basis of Allotment is the most critical step. It determines how shares will be distributed among valid applicants across categories such as RII, NII, and QIB.

The basis of allotment is:

  • Prepared by the IPO registrar
  • Reviewed and approved by the designated stock exchange (NSE or BSE)
  • Conducted strictly as per SEBI regulations

This stage decides:

  • Who gets allotment
  • How many lots are allotted
  • How oversubscription is handled

Once the basis of allotment is finalized and approved, the allotment outcome becomes official.

When Allotment Is Considered Final

IPO allotment is considered final only after:

  • The basis of allotment is approved by the stock exchange
  • Allotment data is uploaded by the registrar

Before this point, any probability, estimate, or expectation remains non-binding and unofficial.

After finalization:

  • Applicants can check allotment status on the registrar’s website
  • The result is legally binding
  • No further changes are made

Typical IPO Allotment Timeline

While timelines may vary slightly, a typical IPO follows this sequence:

  • Day 0: IPO subscription closes
  • Day 1–2: Basis of allotment is finalized and approved
  • Day 2–3: Allotment status is published
  • Day 3–4: Refunds are initiated
  • Day 4–5: Shares are credited to demat accounts

Delays may occur due to:

  • Public holidays
  • Technical reconciliation
  • Regulatory approvals

Refunds and Demat Credit

After allotment is finalized:

  • Refunds for non-allotted or partially allotted applications are processed
  • Shares are credited to successful applicants’ demat accounts

Both actions occur only after final allotment approval.

Common Misunderstandings

Many applicants believe:

  • Allotment is decided immediately after IPO closure
  • Subscription numbers guarantee allotment
  • Probability tools reflect final outcomes

In reality:

  • Allotment is finalized only after registrar and exchange approval
  • Subscription data alone does not determine individual allotment
  • Only official registrar data is authoritative

Key Takeaway

IPO allotment is finalized only after the basis of allotment is approved by the stock exchange and published by the registrar. Until then, no allotment outcome whether expected or estimated should be treated as final.

Applicants should rely only on official allotment status released by the registrar and not on assumptions, predictions, or probability estimates.

When Is IPO Allotment Finalized? | IPO Allotment Probability Calculator