How IPO Allotment Works: The Retail Lottery Explained
IPO guide
By IPO GMP Status desk · Updated 31 October 2026 · How we compile these figures
When an IPO gets more bids than it has shares, not everyone gets an allotment. Who does depends on the category you applied in and, for retail investors, on a computerised lottery.
The investor categories
| Category | Who | Application size |
|---|---|---|
| Retail (RII) | Individuals | Up to ₹2 lakh |
| Small NII (sNII) | Individuals, HUFs, companies | ₹2 lakh to ₹10 lakh |
| Big NII (bNII) | Individuals, HUFs, companies | Above ₹10 lakh |
| QIB | Mutual funds, banks, insurers, foreign institutions | Any |
Each category has its own share of the issue and its own subscription figure, shown live on the subscription page.
The retail lottery
If the retail category is oversubscribed, SEBI's rules aim to give as many applicants as possible the minimum lot. The registrar runs a computerised lottery among valid applications; the winners get one lot each. So when retail is subscribed, say, 20 times, roughly one valid application in twenty gets a lot.
Because each application gets at most one lot in the draw, bidding for more lots does not raise the chance of getting the first one. Applying from different family members' PANs does — each is its own application. You can check all those PANs at once.
NII and QIB allotment
Small NII applications are also allotted by a draw for the minimum NII application size. QIBs are allotted in proportion to their bids. Anchor investors are allotted a day before the IPO opens.
The timeline (T+3)
- T — the IPO closes for bidding.
- T+1 — the basis of allotment is fixed and the status goes up.
- T+2 — money is unblocked for those not allotted, and shares are credited to the demat accounts of those who are.
- T+3 — the shares list on the exchange.
Each IPO's dates are on the IPO calendar.
Frequently asked questions
How is IPO allotment decided for retail investors?
If the retail category is oversubscribed, a computerised lottery picks the applications that get the minimum lot.
Does applying for more lots increase allotment chances?
Not in an oversubscribed retail category: each application gets at most one lot in the lottery.
What is the chance of getting an IPO allotment?
Roughly one divided by the retail subscription: an IPO subscribed 20 times in retail gives about a one-in-twenty chance per application.
When are shares credited after allotment?
On T+2, one day before listing, to the demat account linked to the application.
More IPO guides
- What Is IPO GMP? Grey Market Premium ExplainedIPO GMP (grey market premium) explained in plain words: what it is, how it is quoted, how to read the expected listing price, and why it is only an estimate.
- Kostak and Subject to Sauda in IPO: Meaning ExplainedWhat Kostak and Subject to Sauda mean in the IPO grey market, how they differ from GMP, and the risks of selling an application before allotment.
- How to Check IPO Allotment Status for Multiple PAN CardsApplied for an IPO from several family members' PANs? Check the allotment status of every PAN together in one tap instead of one by one on the registrar's site.
- SME IPO vs Mainboard IPO: What Is the Difference?SME and mainboard IPOs compared: where they list, issue size, lot size and minimum investment, liquidity and risk — what to know before applying.
- How to Apply for an IPO with UPI: Step by StepApply for an IPO with UPI through your broker app: placing the bid, approving the UPI mandate, cut-off times, the ₹5 lakh UPI limit and what happens after.
Nothing here is investment advice; see the disclaimer.