What is the Basis of Allocation or Basis of Allotment?
Jainam Broking Limited
Last Update 2 năm trước
The Basis of Allotment is the document that the IPO Registrar issues to stock exchanges and investors with information on the IPO's final price, demand or bidding information, and the share allocation ratio. It specifies the ratio of allotment and times by which the issue has been oversubscribed. On the basis of this ratio, an investor can find out the number of applicants who will receive the allotment. For example: if the ratio is 1:6, then out of 6 applicants only 1 will receive the allotment.