KRN IPO Allotment
IPOs, as known in the market, are amongst the most eagerly awaited events in the stock market. This presents the investment chance for possible investors to invest in a company before the entire procedure fully becomes available for trading in the public. The KRN IPO, with its growth potential and attractive financial metrics, attracts much attention from retail investors lately. However, many investors have been confused in their efforts to understand how the IPO allotment process works. Below, we will break down the KRN IPO allotment process and what an investor should know.
What is an IPO Allotment?
An IPO allotment is the process of giving out equity offered to public for the first time among the applicants who sought subscription. In most of the visible IPOs, such as KRN, demand always outstrips supply and thus leaves some applicants without getting their allotted stock. Allotment ensures that shares reach the demographically balanced across different strata of retail investors, institutional investors, and HNIs.
Key Steps in the Process of Allotment of KRN IPO
The process of allotment of a KRN IPO has a defined sequence and, broadly speaking, can be put as follows:
- Filing an IPO Application:
An investor who wishes to make an application for KRN IPO is required to apply for allotments via the brokerage platform by filling out the prescribed application form. You can apply for lots of shares, and normally the number of shares forming one lot is predetermined. - Share Bidding:
Most IPOs are linked with a price band, and thus, the investor would have to bid at prices that are within that range. In case of KRN’s IPO, the investors are permitted to place bids for various different prices considering the exact price band declared by the company. Considering the market demand, the cut off price is calculated. - Over-subscription and proportional allotment:
If, on the other hand, people applying for shares far outnumber available shares in KRN IPO, then allotment gets proportionate. For example: if the IPO subscribed 10 times, meaning only 10% of the applicants will get a share allotment. This may turn out to be partial allotment or nil allotment, respectively. - Basis of Allotment (BoA):
The allotment status is determined basis the total number of applications received basis the total number of applications received. The basis of allotment is worked out by a registrar appointed by the company after the IPO closes. While there could be oversubscription, allotment made to the retail investors is generally done through a lottery system. High net worth individuals and institutional investors could receive differential treatment in this regard, often depending upon the size of the bids received. - Refunds in case of failed applications:
If shares are not allotted to you after applying for the KRN IPO, then the blocked amount in your banking account would be returned or freed. It will happen according to the ASBA process wherein the money would be in your bank but gets debited only if shares are allotted to you. - Credit of Shares:
Share in KRN IPO: If you have been allotted shares in the KRN IPO, then the same will get credited into your demat account in a couple of days post allotment. The same can be seen in the ‘holdings’ section within your trading account. - Listing and Trading:
Once credited to your account, the shares will next be listed on the stock exchanges. Here, shares will begin trading; price may float dependent on the demand and supply. This is when investors would start buying and selling the newly listed shares .
Factors Affecting Your KRN IPO Allotment Chances
The KRN IPO may well generate much interest in the company issuing the same. However, there are some reasons that can reduce your chances of getting an allotment to a great extent.
- Retail Investor Quota:
Traditionally, a part of the issue is separately reserved for a group of investors, known as retail investors. If the applications exceed the total numbers of shares allocated for issue, chances of an allotment for you reduces considerably. - Application Size:
Applying for multiple lots of shares does not necessarily bring a higher chance of allotment. Rather, applying for a smaller number of lots may give a higher chance in cases of oversubscription, since allotment is done on a proportional basis. - Cut-off Price:
Bidding at a cut-off price ensures that your application will be considered for allotment. If you have bid lesser than the final cut-off price, all your applications might not get consideration.
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How to Check the KRN IPO Allotment Status
Once the allotment is over, you can know the allotment status online also through different websites such as the official registrar’s website or through your broker. You will need your PAN (Permanent Account Number), application number, or Demat account number to know the status.
The allotment process of the KRN IPO has garnered immense enthusiasm in the market, so it is very much important for investors to understand the allotment process beforehand so that they can garner a piece of the offering. Meanwhile, while the allotment procedure may base itself on factors like demand, application size, and the bidding price, it is mainly at the mercy of dynamics in the market and the interest of its investors. Keep information at the best level and follow the process to the letter and chances of getting allocated allotment increase with this investing opportunity.
Best,
Happy Investing!
FAQs:
What time is KRN IPO allotment?
The allotment of shares in KRN Heat Exchanger IPO is set to be finalised today (September 30). The issue opened for subscription from September 25 to September 27 and witnessed strong demand across investor categories
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