How does the allotment process work if the IPO is oversubscribed or under subscribed?

How does the allotment process work if the IPO is oversubscribed or under subscribed?

  • Oversubscribed IPO: An IPO is said to be oversubscribed when the number of applications exceeds the shares available for allotment. In such scenarios, the registrar will conduct a lottery to allot shares to the applicants.
  • UnderSubscribed IPO: - An IPO is said to be under subscribed when the number of applications is less than the shares offered. In such scenarios, the registrar will allot shares to all of the applicants.