How You Apply: Your Money Is Blocked, Not Taken
When you apply for an IPO through your broker’s app, you approve a UPI mandate (or use your bank’s ASBA facility). The money stays in your bank account but is blocked: you can’t spend it, and nobody has taken it. It is only debited if you get shares.
The IPO Timeline: T to T+3
- T (issue closes): bids are final. The exchanges and the registrar collect all applications.
- T+1 (basis of allotment): the registrar, with the exchange, works out who gets shares.
- T+2: shares are credited to the demat accounts of those allotted, and everyone else’s money is unblocked.
- T+3: the shares list on the exchange and start trading.
How IPO Allotment Is Decided: the Lottery
Each IPO reserves a portion of shares for retail investors. If retail investors apply for more shares than that portion (the issue is oversubscribed), not everyone can get shares. The rule is to give as many people as possible one lot each, chosen by a computerised lottery. So when an issue is heavily oversubscribed, applying for more lots doesn’t raise your chance: every valid application has the same chance of getting one lot.
How to Check IPO Allotment Status
- On the registrar’s website (named in the IPO documents), with your PAN or application number.
- On the NSE or BSE website, in the IPO bid details section.
- In your broker’s app, and from your bank: an unblock message means no allotment.
Listing Day
On listing day, a special pre-open session finds the opening price from buy and sell orders, and then normal trading begins. How those orders are matched is in What Happens When You Buy a Stock? The listing price can be above or below the issue price.
This article explains how the systems work. It is not financial or investment advice, and limits and rules change: check the current ones with SEBI, your broker or the exchange.