SME IPO Share Allotment Process

This IPO News guide/article covers “SME IPO Share Allotment Process”. The page is organized around what is sme ipo allotment?, sme ipo basis of allotment, sme ipo allotment process, allotment to individual investors under new sebi guidelines, allotment to investors other than retail individual investors. IPO News presents the structured facts and tables in its own layout and wording.

Topics Covered

• What is SME IPO Allotment?
• SME IPO Basis of Allotment
• SME IPO Allotment Process
• Allotment to Individual Investors under New SEBI Guidelines
• Allotment to Investors other than Retail Individual Investors
• SME IPO Allotment Status
• SME IPO Enquiry
• Frequently Asked Questions
• 1. How to sell SME IPO shares?−
• 2. Who does allotment of shares in an SME IPO?+
• 3. What should be the minimum number of allottees in SME IPO?+
• 4. How does SME IPO shares allotted to retail investors?+
• 5. How to check SME IPO bidding details?+
• 6. Why I did not get IPO shares allotment?+
• 7. How is allotment done in SME IPO?+
• 8. Are SME IPO shares allotted on first come first serve basis?+
• 9. When shares are allotted to SME IPOs?+
• 10. Can I sell SME IPO shares on the listing day?+
• 11. Is there any lock-in period for SME IPOs?+
• 12. Are promoters holding locked in for SME IPO?+
• 13. What is the escrow account in IPO?+
• Compare Stock Brokers Side-by-Side

Key Facts

• India's trusted financial research platform since 2015. Live IPO GMP, subscription data, allotment status, Rights Issues, NCDs and unbiased stock broker reviews.
• Registrar publishes a basis of allotment by complying with the SEBI guidelines.
• Case 1: Undersubscription – Applications received < Lots reserved
• Case 2: Oversubscription – Applications received > Lots reserved
• Issue price: ₹120 per share
• Minimum application: 2 lots = 2,000 shares
• Application amount: ₹2,40,000
• The company reserves 10,000 lots for Individual Investors.
• Since each Individual Investor must apply for a minimum of 2 lots:
• Maximum number of possible allottees = 5,000 investors (10,000 lots ÷ 2 lots)
• Now assume the IPO receives 18,500 valid Individual Investor applications.
• Because only 5,000 investors can be allotted while 18,500 investors applied, the registrar conducts a draw of lots.
• This means approximately 1 out of every 4 applicants may receive allotment.
• Investors selected in the lottery receive 2 lots (2,000 shares), while the application funds of unsuccessful applicants are released or unblocked as per the IPO schedule.
• Under the retail category, if the total number of SME IPO applications exceeds the shares offered, then allotment will be done through a computerized lottery draw process.
• You can check the SME IPO subscription details online across both the BSE SME and NSE SME exchange by following the below steps;
• BSE SME IPO Subscription check
• Visit the BSE SME website.
• On the top, tap on the BSE Bid Details to check the live subscription.
• NSE SME IPO Subscription check
• Head to the NSE Emerge web portal.
• Click on the View bid details-NSE respective to the IPO of your choice.
• When an IPO opens for subscription, investors from different categories like RII and NII start applying for shares. Shares will be allotted within a week after the IPO issue closure.
• An investor can sell shares of a listed SME company on the day when the securities get listed and traded on either the BSE or NSE SME exchange.
• SME IPO shares are traded in lots only say 1 lot, 2 lot, etc. means you cannot sell a single SME share.
• Yes, for an SME company seeking to raise capital via the IPO route, promoters’ holdings upto 20% of the post-issue capital will be locked in for a period of 3 years.
• BSE SME IPO Eligibility Criteria
• SME IPO Listing Platforms BSE SME and NSE Emerge
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• SEBI's New Norms for SME IPOs: Key Changes and Implications on SMEs

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