{"id":6608,"date":"2024-10-30T10:33:42","date_gmt":"2024-10-30T10:33:42","guid":{"rendered":"https:\/\/navia.co.in\/blog\/?p=6608"},"modified":"2026-08-13T06:08:58","modified_gmt":"2026-08-13T06:08:58","slug":"sme-ipo-allotment-process","status":"publish","type":"post","link":"https:\/\/navia.co.in\/blog\/sme-ipo-allotment-process\/","title":{"rendered":"SME IPO Allotment Process: A Simple Guide with Examples\u00a0"},"content":{"rendered":"<ul><li><a class=\"aioseo-toc-item\" href=\"#what-is-the-sme-ipo-allotment-process\">What is the SME IPO Allotment Process?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#step-by-step-sme-ipo-allotment-process\">Step-by-Step SME IPO Allotment Process<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#1-minimum-allotment-requirement\">1. Minimum Allotment Requirement:<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#2-retail-individual-investors-rii-allotment\">2. Retail Individual Investors (RII) Allotment:<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#3-non-retail-investors-nii-and-qib-allotment\">3. Non-Retail Investors (NII and QIB) Allotment:<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#what-happens-when-the-ipo-is-oversubscribed\">What Happens When the IPO is Oversubscribed?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#why-might-you-not-get-an-allotment\">Why Might You Not Get an Allotment?<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#sme-ipo-allotment-status\">SME IPO Allotment Status<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#conclusion\">Conclusion<\/a><\/li><li><a class=\"aioseo-toc-item\" href=\"#frequently-asked-questions\">Frequently Asked Questions<\/a><\/li><\/ul>\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The <strong>SME IPO allotment process<\/strong> follows specific guidelines and involves several key steps to ensure a fair allocation of shares to investors. Understanding this process is crucial for anyone interested in investing in an <a href=\"https:\/\/navia.co.in\/ipo-account\">SME IPO<\/a>. This article will break down the process for both <strong>retail<\/strong> and <strong>non-retail investors<\/strong> and provide examples to clarify how shares are allocated.\u00a0<\/p>\n\n\n\n<blockquote style=\"border-left:4px solid #e8622f;background:#fdf1ec;padding:18px 22px;margin:1.5em 0;line-height:1.8\"><strong>&#128161; Quick Answer<\/strong><br>SME IPO shares are allotted from the Basis of Allotment prepared by the registrar. Every successful applicant must get at least one trading lot, so the number of allottees is capped at the shares on offer divided by the lot size. Retail applications above that cap go to a lottery; non-retail bids are scaled down proportionately.<\/blockquote>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-7ee07742ac4e2027648afcb6697b6e7a\" id=\"what-is-the-sme-ipo-allotment-process\" style=\"color:#023368\"><strong>What is the SME IPO Allotment Process?<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">When an SME company issues an Initial Public Offering (IPO), the allotment of shares is done based on a document called the <strong>Basis of Allotment (BOA)<\/strong>. This document, prepared by the IPO registrar, provides details on how shares will be distributed among different categories of investors, including <strong>Retail Individual Investors (RIIs)<\/strong> and <strong>Non-Institutional Investors (NIIs)<\/strong>.&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">For an SME IPO to be successfully listed on the <a href=\"https:\/\/navia.co.in\/blog\/decoding-sme-ipo-vs-mainboard-ipo\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=ipo\">SME exchange<\/a>, a minimum of <strong>50 applicants<\/strong> is required. The process of allotment begins after the closure of the IPO and follows the rules set by <a href=\"https:\/\/www.sebi.gov.in\/\" target=\"_blank\" rel=\"noopener\">SEBI<\/a>.\u00a0<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-4ff951bf178b96fbaf9092fc92521e76\" id=\"step-by-step-sme-ipo-allotment-process\" style=\"color:#023368\"><strong>Step-by-Step SME IPO Allotment Process<\/strong>\u00a0<\/h2>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-223095bef6e955b2d167d4996b2d4df5\" id=\"1-minimum-allotment-requirement\" style=\"color:#ec4d37\">1. <strong>Minimum Allotment Requirement<\/strong>:\u00a0<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">According to SEBI guidelines, each applicant must receive at least <strong>one trading lot<\/strong>. For example, if an SME company issues <strong>50,00,000 shares<\/strong>, and the <strong>lot size<\/strong> is <strong>2000 shares<\/strong>, the maximum number of allottees who will receive one lot is:\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>50,00,000 shares \/ 2000 shares per lot = 2500 applicants<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Therefore, <strong>2500 investors<\/strong> will be allotted at least one lot each.\u00a0<\/p>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-9e0216a1388461eee8d5464b9ceaa4a0\" id=\"2-retail-individual-investors-rii-allotment\" style=\"color:#ec4d37\">2. <strong>Retail Individual Investors (RII) Allotment<\/strong>:\u00a0<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Retail investors who bid for shares worth up to \u20b92 lakhs fall under this category. If the total number of applications exceeds the shares available for RIIs, the allotment is done through a <strong>lottery system<\/strong>.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>Example<\/strong>:&nbsp;<br>Suppose a company has <strong>20 lakh shares<\/strong> available for the retail segment, and the <strong>minimum lot size<\/strong> is <strong>10,000 shares<\/strong>. The maximum number of retail allottees would be:&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>20,00,000 \/ 10,000 = 200 applicants<\/strong>.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">If <strong>250 retail investors<\/strong> apply for shares, only <strong>200 applicants<\/strong> will be allotted shares, selected through a computerized lottery. The remaining <strong>50 applicants<\/strong> will not receive any allotment.&nbsp;<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Scenario<\/strong>\u00a0<\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Shares Offered (Retail)<\/strong>\u00a0<\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Lot Size<\/strong>\u00a0<\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Applications Received<\/strong>\u00a0<\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Allotted Through Lottery<\/strong>\u00a0<\/mark><\/th><\/tr><\/thead><tbody><tr><td><strong>Oversubscription Example<\/strong>&nbsp;<\/td><td>20,00,000&nbsp;<\/td><td>10,000&nbsp;<\/td><td>250&nbsp;<\/td><td>200&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h3 class=\"wp-block-heading has-text-color has-link-color wp-elements-1be2910bb45f13c86651d44bf59adc87\" id=\"3-non-retail-investors-nii-and-qib-allotment\" style=\"color:#ec4d37\">3. <strong>Non-Retail Investors (NII and QIB) Allotment<\/strong>:\u00a0<\/h3>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Investors in this category include <strong>Non-Institutional Investors (NIIs)<\/strong> and <strong><a href=\"https:\/\/navia.co.in\/blog\/understanding-ipo-allotment-and-listing-process\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=ipo\">Qualified Institutional Buyers (QIBs)<\/a><\/strong> who bid for amounts greater than \u20b92 lakhs. In case of oversubscription, the allotment is done on a <strong>proportionate basis<\/strong>.\u00a0<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>Example<\/strong>:&nbsp;<br>If an NII applies for <strong>10 lakh shares<\/strong>, and the NII category is <strong>oversubscribed by 10 times<\/strong>, the investor will be allotted:&nbsp;<\/p>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\"><strong>10 lakh shares \/ 10 = 1 lakh shares<\/strong>.<\/p>\n\n\n\n<figure class=\"wp-block-table\"><table><thead><tr><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Category<\/strong>\u00a0<\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Shares Applied<\/strong>\u00a0<\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Oversubscription<\/strong>\u00a0<\/mark><\/th><th><mark style=\"background-color:rgba(0, 0, 0, 0);color:#ec4d37\" class=\"has-inline-color\"><strong>Shares Allotted<\/strong>\u00a0<\/mark><\/th><\/tr><\/thead><tbody><tr><td><strong>Non-Institutional Investor<\/strong>&nbsp;<\/td><td>10 lakh&nbsp;<\/td><td>10x&nbsp;<\/td><td>1 lakh&nbsp;<\/td><\/tr><tr><td><strong>Qualified Institutional Buyer<\/strong>&nbsp;<\/td><td>15 lakh&nbsp;<\/td><td>5x&nbsp;<\/td><td>3 lakh&nbsp;<\/td><\/tr><\/tbody><\/table><\/figure>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-46b96c7493f1ce90c13a99cd18ff9f97\" id=\"what-happens-when-the-ipo-is-oversubscribed\" style=\"color:#023368\"><strong>What Happens When the IPO is Oversubscribed?<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">When an IPO receives more applications than the shares available, the following occurs:&nbsp;<\/p>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Retail Investors<\/strong>: The maximum number of retail investors who can be allotted shares is calculated by dividing the total shares available by the minimum bid lot. If the number of applications exceeds this, the allotment is done via a <strong>lottery system<\/strong>, where successful applicants are chosen randomly.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Non-Retail Investors<\/strong>: The allotment for non-retail investors is done <strong>proportionally<\/strong>. If an investor applies for shares that are 10 times oversubscribed, they will receive 1\/10th of the shares they applied for.<\/li>\n<\/ul>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-dcb5df259c54f79178a0b3123d767edd\" id=\"why-might-you-not-get-an-allotment\" style=\"color:#023368\"><strong>Why Might You Not Get an Allotment?<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">There are a few common reasons why an investor may not receive an allotment in an SME IPO:\u00a0 <\/p>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Oversubscription<\/strong>:\u00a0<br>If the IPO is heavily oversubscribed, only a limited number of investors will receive shares. In such cases, allotment is done through a lottery, and some investors may not receive any shares.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Incorrect Application Details<\/strong>:\u00a0<br>If your application has any incorrect details, such as incorrect PAN or Demat account information, your application may be rejected.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Non-Allotment Due to Lot System<\/strong>:\u00a0<br>The SME IPO allotment process follows a lot system. If the total number of valid applications exceeds the available shares, you may not receive allotment due to the random nature of the lottery system.<\/li>\n<\/ul>\n\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-60b6478234fde1415221a4b1c2f45808\" id=\"sme-ipo-allotment-status\" style=\"color:#023368\"><strong>SME IPO Allotment Status<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">Once the IPO issue closes, the registrar announces the allotment of shares. Investors can check their allotment status online by visiting the registrar\u2019s website and entering details such as:&nbsp;<\/p>\n\n\n\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>Company name\u00a0<\/strong><\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>PAN number<\/strong><\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\"><strong>IPO application number<\/strong><\/li>\n<\/ul>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">This allows investors to easily track whether they have been allotted shares or not.&nbsp;<\/p>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-d16d6573404be996b55a9bf8bbf79294\" id=\"conclusion\" style=\"color:#023368\"><strong>Conclusion<\/strong>\u00a0<\/h2>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">The <a href=\"https:\/\/navia.co.in\/ipo-account\">SME IPO<\/a> allotment process, while similar to the mainboard IPO process, has its own unique aspects, especially in the way it allocates shares to retail and non-retail investors. Whether through the <strong>lottery system<\/strong> for retail investors or the <strong>proportionate basis<\/strong> for non-retail investors, the allotment process is designed to ensure fairness and transparency.\u00a0<\/p>\n\n\n\n<figure class=\"wp-block-image size-large\"><a href=\"https:\/\/open.navia.co.in\/?utm_source=Organic&amp;utm_medium=blog&amp;utm_campaign=blog&amp;utm_content=ipo_CTA\"><img fetchpriority=\"high\" decoding=\"async\" width=\"1024\" height=\"149\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2-1024x149.png\" alt=\"SME IPO - Open account with navia\" class=\"wp-image-4299\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2-1024x149.png 1024w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2-300x44.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2-150x22.png 150w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2-768x112.png 768w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/08\/Open-Free-Demat-Account-2.png 1028w\" sizes=\"(max-width: 1024px) 100vw, 1024px\" \/><\/a><\/figure>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"line-height:1.8;text-align:justify\">By understanding this process, investors can better prepare for <a href=\"https:\/\/navia.co.in\/blog\/sme-ipo-performance-in-india-2024\/?utm_source=blog&amp;utm_medium=internal_link&amp;utm_campaign=ipo\">SME IPOs<\/a> and manage their expectations when applying for shares.\u00a0<\/p>\n\n\n\n<h3 id=\"key-takeaways\" style=\"color:#ec4d37\">Key Takeaways<\/h3>\n<ul style=\"margin:1em 0;line-height:1.9\">\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Allotment follows the Basis of Allotment document prepared by the IPO registrar, which sets out how shares are split between investor categories.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">An SME IPO needs a minimum of 50 applicants to be listed on the SME exchange.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Every applicant must receive at least one trading lot, so the maximum number of allottees is the shares on offer divided by the lot size.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">Retail investors bidding up to \u20b92 lakh are allotted by computerised lottery when the category is oversubscribed.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">NIIs and QIBs bidding above \u20b92 lakh are allotted on a proportionate basis \u2014 a 10x oversubscribed application receives a tenth of the shares applied for.<\/li>\n<li style=\"margin-bottom:0.8em;line-height:1.8\">You can miss out through oversubscription, incorrect PAN or demat details, or simply the randomness of the lottery.<\/li>\n<\/ul>\n\n\n\n<p class=\"has-text-align-center wp-block-paragraph\"><strong>DID YOU FIND THIS INTERESTING?<\/strong><\/p>\n\n\n\n<div class=\"wp-block-group is-nowrap is-layout-flex wp-container-core-group-is-layout-8f761849 wp-block-group-is-layout-flex\">\n<p class=\"wp-block-paragraph\"><strong>We&#8217;d love to hear from you &#8211;<\/strong> <\/p>\n\n\n\n<figure class=\"wp-block-image size-full\"><a href=\"https:\/\/form.typeform.com\/to\/bpQ8ZlDc?typeform-source=navia.co.in\"><img decoding=\"async\" width=\"300\" height=\"64\" src=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png\" alt=\"yes or no feedback form\" class=\"wp-image-8335\" style=\"max-width:100%;height:auto\" srcset=\"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button.png 300w, https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2025\/01\/Yes-No-Button-150x32.png 150w\" sizes=\"(max-width: 300px) 100vw, 300px\" \/><\/a><\/figure>\n<\/div>\n\n\n\n<h2 class=\"wp-block-heading has-text-color has-link-color wp-elements-104d8c0b4552a7bc0756abdd38ec22b9\" id=\"frequently-asked-questions\" style=\"color:#023368\">Frequently Asked Questions<\/h2>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">What is the SME IPO allotment process?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">When an SME company issues an IPO, shares are allotted using the Basis of Allotment document prepared by the IPO registrar. It sets out how shares are distributed between Retail Individual Investors and Non-Institutional Investors, and the process begins after the IPO closes.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">How many applicants does an SME IPO need?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">A minimum of 50 applicants is required for an SME IPO to be successfully listed on the SME exchange.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">How is the maximum number of allottees calculated?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Each applicant must receive at least one trading lot, so you divide the shares on offer by the lot size. In the article\u2019s example, 50,00,000 shares with a lot size of 2000 shares gives a maximum of 2500 allottees.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">How are shares allotted to retail investors in an SME IPO?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Retail investors who bid for shares worth up to \u20b92 lakh fall into this category. If applications exceed the shares available, allotment is done through a computerised lottery. In the article\u2019s example, 250 applicants compete for 200 lots and 50 receive nothing.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">How are non-retail investors allotted shares?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Non-Institutional Investors and Qualified Institutional Buyers bidding above \u20b92 lakh are allotted on a proportionate basis. If an NII applies for 10 lakh shares and the category is oversubscribed 10 times, the allotment is 1 lakh shares.<\/p>\n\n<\/details>\n\n\n\n<details class=\"wp-block-details is-layout-flow wp-block-details-is-layout-flow\" style=\"background:#f1f1f1;border-radius:4px;margin-bottom:10px\">\n<summary style=\"font-weight:600;font-size:17px;color:#1a2332;cursor:pointer;padding:16px 20px\">Why might you not get an SME IPO allotment?<\/summary>\n\n<p class=\"wp-block-paragraph\" style=\"padding:0 20px 18px 20px;line-height:1.8;color:#333;margin:0\">Three reasons in the article: heavy oversubscription means only a limited number of investors receive shares, incorrect application details such as a wrong PAN or demat account can get your application rejected, and the lot-based lottery is random.<\/p>\n\n<\/details>\n\n\n\n<p class=\"wp-block-paragraph\" style=\"font-size:13px;line-height:1.6;color:#777\"><strong>DISCLAIMER: Investments in the securities market are subject to market risks, read all the related documents carefully before investing. The securities quoted are exemplary and are not recommendatory. Brokerage will not exceed the SEBI prescribed limit.<\/strong> Full disclaimer: <a href=\"https:\/\/bit.ly\/naviadisclaimer\" target=\"_blank\" rel=\"noopener\">https:\/\/bit.ly\/naviadisclaimer<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>The SME IPO allotment process follows specific guidelines and involves several key steps to ensure a fair allocation of shares to investors. Understanding this process is crucial for anyone interested in investing in an SME IPO. This article will break down the process for both retail and non-retail investors and provide examples to clarify how [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":6628,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"ub_ctt_via":"","_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[205],"tags":[50,347,335,334,346],"class_list":["post-6608","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-ipo-investments","tag-ipo","tag-ipo-allotment-process","tag-ipo-listing","tag-ipo-process","tag-sme-ipo"],"aioseo_notices":[],"featured_image_src":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/10\/SME-Ipo-1.png","author_info":{"display_name":"Navia Markets","author_link":"https:\/\/navia.co.in\/blog\/author\/tradeplusonline\/"},"jetpack_featured_media_url":"https:\/\/navia.co.in\/blog\/wp-content\/uploads\/2024\/10\/SME-Ipo-1.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/6608","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/comments?post=6608"}],"version-history":[{"count":12,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/6608\/revisions"}],"predecessor-version":[{"id":19215,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/posts\/6608\/revisions\/19215"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media\/6628"}],"wp:attachment":[{"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/media?parent=6608"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/categories?post=6608"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/navia.co.in\/blog\/wp-json\/wp\/v2\/tags?post=6608"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}