Worried about IPO allotment status ? Here is the answer !!

What is an IPO? An IPO is an initial public offering. If a company is really doing well and wants to expand its business, it can raise capital by issuing fresh shares to the public (those who buy the shares become shareholders). At the time shares are issued to the public, the company will get listed and become a fully fledged company. Getting listed is subject to fulfilling all conditions laid down by the SEBI (Security and Exchange Board of India).

Why capital raising is important: If any company has already raised funds through banks and financial institutions but wants to raise more capital, then an IPO is the best option. The latest example of an IPO is Burger King, with a face value of Rs 10 per equity share and a market value of 250 shares at Rs 60. Which means one lot costs the retailer or investor approx. Rs 15000. As we all know, Burger King shares were oversubscribed (in simple words, demand for shares was far greater than supply), which means retail investors will get shares as a lucky draw based on the number of PAN card holders who applied. Currently, Burger King is trading at Rs 180 per share, which means a 300% profit.

                                   Rules That Warren Buffett Lives By

         "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1."

So in conclusion we can say that company got capital for expansion of its business by opening new branches, upgrading from existing technology, future planning & strategies, introducing new products etc. and Share holders will get profit in the form of dividend & raised share prices.

How to check the IPO status ? Break the curiosity 

IPO can only be applied through brokers platform like Zerodha, Sharekhan, ICICI, Angel Broking etc. One must have Demat Account (Trading account) for which PAN card is mandatory.

Sample IPO Apply Window From Broker's Website

There are three ways to check the IPO status :

• Linkintime platform (best & easiest) - Post login into LINKINTIME investors needs to select the IPO of the company and search the status either by inputting PAN detail, Application number (which one received over email/text while submitting IPO) & DP Client ID (Broker Client code where investors are associated/used platform to apply IPO).

        Post inputting PAN details as one of the scenario click on search command. Below is            the status of one of the IPO applied.

IPO Status check window

As of now this platform provides details of the IPO allotment on the next day of actual date of allotment which means if the official allotment date of share is 28th Dec'20 then investors can check the status on 29th Dec'20.

• BSE (Bombay Stock Exchange) platform - Another way to check the IPO allotment status via Bombay Stock Exchange platform. Either Investor needs to directly mention BSE IPO status over Google search box or just dig into BSE web site then click on Investors tab & select Investors relation page. Under drop down one will get an option of Status Of Issue Application.

BSE IPO Status Navigator

BSE IPO Application Page

BSE IPO allotment is on real time/ same day basis however investors must have Application details as mandatory credentials along with PAN details without which one cannot get the desired output.

• Last but not the least option is to check the IPO allotment status directly from Brokers Website or wait for the message from broker with the allotment status.

IPO Application Confirmation By Broker 

Application Allotment Status By Broker

As we hear the most -  Investments are subjected to market risk and one need to read, analyze themselves, listen to the experts and use our own mind & calculation before applying for any Shares. Everyone heard about Subprime Crisis 2008 where all calculations proven wrong but always follow the Rules That Warren Buffett Lives By

           "Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1."

History of IPO popularity and Investors interest 

Period	IPOs Number	Amount Raised (In Rs Cr)	Issued Successfully	Issue Failed
2007	108	33,946.22	104	4
2008	39	18,339.92	36	3
2009	22	19,306.58	21	1
2010	66	36,362.18	64	2
2011	40	5,977.47	37	3
2012	13	6,834.17	11	2
2013	5	1,283.95	3	2
2014	7	1,200.94	5	2
2015	21	13,513.17	21	0
2016	27	26,500.82	26	1
2017	38	75,278.57	38	0
2018	25	31,731.28	24	1
2019	16	12,687.32	16	0
2020 *	16	26,628.06	15	1