How IPO Allotment Is Calculated: A Simple Guide for Retail Investors

IPO allotment depends on shares reserved for each investor category, number of valid applications, and oversubscription level.

Applying for several lots does not improve the chance of receiving shares in a heavily subscribed retail issue.

For an IPO subscribed 10 times in the retail category, the number of valid applications matters more than the total shares applied for.

A retail investor's chance of receiving one lot is approximately the number of minimum lots available divided by valid applications; example shows a 33.33% probability.

Common reasons for rejection include incorrect PAN, name-demat mismatch, duplicate PAN, UPI mandate failure, and bid below the final price.