Bharat 22 ETF allotment

[anmolashah]

The units for Bharat ETF 22 will be allowed on first come, first serve basis? or it will be lucky draw, if oversubscribed?

[Bhuvan]

@anmolashah

The units for Bharat ETF 22 will be allowed on first come, first serve basis? or it will be lucky draw, if oversubscribed?

In case of oversubscription, the units will be allotted proportionally. Check this post for more

Price discovery of IPO

Technically IPO’s are rarely undersubscribed and FYI SBI LIfe is oversubscribed. Typically in IPOs, the issuing company appoints underwriters whose job is to find buyers for the shares and they also agree to assume the risk of buying unsold shares. So in case of an undersubscribed issue, the underwriters assume the unsold portion of the issue and hence the IPO will be fully subscribed and sail through. According to guidelines an issue must be subscribed by at least 90% for it to list, if the i…