I applied for Bajaj Housing ipo under NII category.
The issue was oversubscribed by 43xin this category.
One lot was for ~15k and I applied for 786 lots.
But i was not alloted any shares. Please find the alloted screenshot from kfintech
What can be the issue in my application?
When an IPO is oversubscribed in a category, allotment is done per PAN, irrespective of lots applied.
So applying 1 lot of retail/SHNI/BHNI from different pan is better than applying multiple lots from same pan
Big HNI is 67 lots. So you applying 800 lots is same chances as someone applying 67 lots (in over subscription).
as per my knowledge
I thought it was proportional to the applied amount in HNI category. That is why I applied the max I could.
Will check more on it and will update here.
Still it is not clear why I have been allotted 0 lots in this case.
@mohitmehra recently tweeted the following a couple of days ago -
When it comes to IPOs, the value-wise subscription doesn’t always determine the likelihood of allotment.
Take Bajaj Housing Finance, for example: the HNI(b) category saw a 47x subscription. But since this figure is based on value terms, it doesn’t mean you have a 1/47 chance of getting an allotment. The allotment is done through a lottery system, not on a pro-rata basis, and it depends on the number of applicants.
More applicants mean fewer chances for each one. Because large ticket applications skew the average, the actual chances of getting an allotment in HNI(b), HNI(s), and retail categories are better than the subscription numbers suggest. However, in the QIB category, allotment is done on a pro-rata basis. For the Bajaj IPO, this means if an institution applied for â‚ą209 crores in the QIB category, they would be allotted shares worth â‚ą1 crore.
In short, while big subscription numbers may seem daunting, your actual chances of getting an allotment might be better than they appear—especially for retail and HNI investors!
So even in BHNI, SHNI it’s lottery? (One lot per PAN max)
Yeah
This was very helpful and explains what would have happened, thanks.
I thought for HNI it is on pro-rata basis which was wrong.
i always thought 47x means 1:47(each lot has demand of 47 individual or pan).
they should also release how many pan is applying, that way comparing with total lots we will know real chance of getting an ipo.
Please add copy button beside IPO application number on mobile. Or make the text selectable.
Subscription ratio is based on unique PANs right?
