IPO Basics

Who does the IPO allotment — the broker or Registrar to the Issue (RTA)?

IPO allotments are done by the Registrar to the Issue (RTA), not by the broker.

Here's how the IPO allotment process works:

1. Application: You apply through your broker or a syndicate member.

2. Data Collection: All applications are compiled by the lead managers and sent to the RTA.

3. Allotment: The RTA conducts a SEBI-compliant, computerised allotment process based on investor category, application volume, and oversubscription levels.

4. Result Sharing: Once finalised, allotment details are shared with the exchanges, lead managers, and brokers.

5. Update to Investor: Brokers then notify customers and credit the allotted shares to the demat accounts of successful applicants.

So, while brokers facilitate the application process, the actual allotment of shares in an IPO is done by the Registrar to the Issue, which is an independent entity appointed specifically for this purpose.