Applying for Initial Public Offerings (IPOs) through MO Riise is quick and convenient. Backed by Motilal Oswal, a SEBI-registered public entity, the app is trusted by more than 40 lakh investors and is designed to simplify IPO investing. But once you place your bid, what happens next? How do you find out if shares have been allotted, and how to track them? Most importantly, when do those shares become available in your demat account?
This guide explains the complete IPO allotment process in detail, from submitting your application to checking the allotment status using the MO Riise app.
IPO application submission
First, apply for IPO shares through MO Riise during the bidding window. The steps include:
- Log in to the app.
- Click the ‘More’ button at the bottom menu.
- Click on ‘IPO’.
- Select an IPO from the ‘Current’ or ‘Upcoming’ IPOs tab.
- Choose your investor category, such as retail investor, High-Net-Worth Individual (HNI), employee, or policyholder.
- Enter bid details (e.g., number of lots).
- Provide your Unified Payments Interface (UPI) ID.
- Accept the terms and conditions to proceed.
- Finally, approve the UPI mandate through the IPO app when prompted.
Segregation by investor category
Applications are usually categorised as follows:
- Qualified Institutional Buyers (QIBs)
- Retail Individual Investors (RIIs)
- Non-Institutional Investors (NIIs)
Each category has a reserved quota, and the allotment rules vary accordingly.
IPO allotment calculation: What determines your share?
The number of shares you get depends on how many investors apply, their categories, and whether the IPO is over- or under-subscribed.
In case of under-subscription
If the number of valid applications is fewer than the shares reserved for that category, then all applicants receive the full quantity they applied for. For example, if the retail category offers 1,00,000 shares and only 80,000 are applied for, each retail applicant gets full allotment. The balance shares would be allotted proportionally.
In case of over-subscription
There are instances when the response to an IPO is so massive that distributing even one lot to each eligible investor isn’t feasible. In such cases, allotment is carried out through a lucky draw as mandated by the Securities and Exchange Board of India (SEBI). This system is automated and randomised so that there is no scope for discretion or manual interference.
The computer-based lottery mechanism is designed to treat all valid applications equally, regardless of when or how many lots were applied for.
Checking your allotment status on MO Riise
First, log into your demat account through the MO Riise app. Next, go to the section that shows your IPO applications. You will find a list of IPOs you have applied for, along with details like the application number, number of lots applied, and current allotment status.
If shares are allotted, the app will display the exact quantity. Those shares will be credited to your demat account on the listing date and become available in the share market for trading. If you do not get any allotment, MO Riise might show ‘No allotment’ or ‘Pending’ status. The blocked amount will be released to your bank account within 3 to 5 working days.
To sum up
The IPO allotment process follows strict guidelines set by SEBI and is based on fair distribution principles. Although MO Riise makes the IPO application experience simple and convenient, allotment decisions depend on investor demand and SEBI regulations.
By understanding how the IPO process works behind the scenes, you can better interpret allotment results and plan your participation in upcoming IPOs more effectively. Applying early through the MO Riise app, reading the Red Herring Prospectus (RHP), studying research reports, and analysing company financials can help you make informed IPO decisions. But keep in mind that allotment in oversubscribed issues ultimately comes down to chance within the fair lottery system.
