IPO Allotment Process & Refund Timeline 2026

Q: How long does IPO allotment take?

Under SEBI's T+3 listing timeline, allotment is finalized by T+1 (one working day after the IPO closes). Shares are credited to Demat accounts and refunds are processed by T+2. Listing happens on T+3.

Q: Does applying for more lots increase my allotment chances?

No, for retail investors in mainboard IPOs, applying for 1 lot or maximum lots gives the same probability since allotment is done by lottery where each PAN gets an equal chance.

Q: What is the difference between sNII and bNII in IPO allotment?

sNII (Small NII) covers applications between Rs 2-10 lakh and gets 1/3 of the NII reservation. bNII (Big NII) covers applications above Rs 10 lakh and gets 2/3 of the NII reservation. Allotment within each sub-category is proportional, but switches to lottery if proportional allotment results in less than 1 lot.

How IPO Allotment Works

After an IPO closes, the allotment process begins. Under SEBI's T+3 listing timeline (mandatory since December 2023), here's how it works:

T (IPO Closes) — Bidding period ends
T+1 (Basis of Allotment) — Registrar finalizes the allotment based on subscription data. Allotment status is published
T+2 (Refund + Demat Credit) — Blocked amount is released for unsuccessful applicants. Shares are credited to successful applicants' Demat accounts
T+3 (Listing) — Shares start trading on BSE/NSE

Note: "T" refers to the IPO closing date, and all days are working days. Some IPOs may have slight variations in timing, but the T+3 framework is the standard for all mainboard and SME IPOs.

Allotment for Retail Investors (RII)

Retail investors (applying up to Rs 2 lakh) get 35% reservation in mainboard book-built IPOs. The allotment process depends on the subscription level:

When subscription is less than 1x

All valid applicants receive full allotment of shares they applied for.

When subscription is more than 1x (Mainboard)

The process follows a computerized lottery system:

Each valid application (unique PAN) has an equal chance regardless of the number of lots applied
The registrar conducts a computerized lottery to select winners
Selected applicants receive 1 lot minimum
Your probability = (Total lots available for RII) / (Total number of valid applications)

Tip: Since each PAN gets equal probability, applying from multiple family members' Demat accounts increases your overall chances of getting allotment. Applying for more lots from the same PAN does not improve your odds.

SME IPO Allotment

SME IPOs (listed on BSE SME or NSE Emerge) follow a similar lottery-based approach for retail investors when oversubscribed. However, SME IPOs have larger minimum lot sizes (often Rs 1–2 lakh per lot) and the cut-off price option is not available in fixed-price issues.

Allotment for NII / HNI Category

Non-Institutional Investors (NII) are those applying for more than Rs 2 lakh. The NII category is split into two sub-categories:

sNII (Small NII) — Applications between Rs 2 lakh and Rs 10 lakh. Gets 1/3 of the NII reservation
bNII (Big NII) — Applications above Rs 10 lakh. Gets 2/3 of the NII reservation

Within each sub-category, allotment is proportional to the application size. For example, if the sNII category is 10x subscribed, you receive approximately 1/10th of the shares you applied for. However, if the proportional allotment results in less than 1 lot per applicant, allotment switches to a lottery system similar to retail.

Allotment for QIB Category

Qualified Institutional Buyers (mutual funds, banks, insurance companies, FIIs):

At least 50% of the issue is reserved for QIBs in mainboard book-built IPOs (can be higher for companies that don't meet the profitability track criteria)
Allotment is at the discretion of the book running lead manager (BRLM)
At least 5% of the QIB portion is reserved for mutual funds

How to Check Allotment Status

Allotment status is typically available by the evening of T+1 or morning of T+2. You can check through:

Registrar's website — The most reliable method. Search for the IPO on our IPO page, open the detail page, and use the allotment check option to find the right registrar portal
BSE/NSE website — Check using your application number or PAN
Your broker's app — Most brokers show allotment status under the IPO section
Demat account — Check if shares have been credited (by T+2)

IPO Refund Timeline

If you don't receive allotment, your blocked funds are released automatically under SEBI's T+3 timeline:

ASBA applicants: The bank unblocks your amount by T+2 (2 working days after IPO closes). No deduction is made from your account — the amount was only blocked, not debited
UPI applicants: Refund timeline is the same as ASBA — funds are unblocked by T+2 via your UPI-linked bank
Partial allotment (NII/HNI): If you applied for multiple lots but received fewer, the excess blocked amount is released by T+2

If refund is delayed: Contact your bank or broker. In rare cases, refunds may take 1–2 extra working days due to bank processing. If delayed beyond T+4, file a complaint on the SEBI SCORES portal or contact the registrar directly.

What to Do After Allotment

If allotted: Shares will be credited to your Demat account by T+2. You can sell on listing day (T+3) or hold for the long term
If not allotted: Your blocked amount will be released back to your bank account by T+2. No action needed from your side

Disclaimer: This guide is for educational purposes only and does not constitute investment advice. Allotment rules and timelines are based on current SEBI regulations and may change. Always refer to the official prospectus (RHP) for specific IPO terms.

IPO Allotment Process in India