Applying an IPO doesn’t guarantee IPO allotment

Applying for the shares in an IPO  will not guarantee you with a certain amount of shares after allotment. It is generally the bidding for shares are the allotment is determined  according to the number of bids from different categories and the price at which the  investor applied.

Once the IPO is closed, the registrar of the issue will collect the bidding information and prepare a ‘Basis of Allotment’ document that gives information about the bids and the investors from different category at different prices.