IPO Allotment Process in Nepal – Step by Step Information
Understanding how IPO allotment works in Nepal is crucial for every investor. Here is a step-by-step guide explaining the IPO allotment process, from pre-allotment to final allotment, along with common myths and facts.
Step 1: Pre-Allotment
In the pre-allotment process, all invalid applications are sorted out before the actual allotment. This process selects only those applications that are valid. All valid applications received from different DPs and Mero Share applications are sorted in a tabulated form based on their applied timing.
Common Reasons for IPO Rejection:
- Applying from multiple accounts by a single person in a single IPO
- Insufficient balance in CASBA bank account
- Incorrect entry of BOID
- Unregistered CRN
- Selection of odd-lot unit
Step 2: Allotment
On the day of allotment, applicants are selected using a lottery system. The allotment program is live-telecasted through social media channels by issue managers. Journalists, representatives of investors, and other stakeholders also take part in the allotment program.
For the allotment, a first random number is selected from the basket. The number 1–9 determines who will get the first IPO. After that, the skip value is added to determine who will get the next IPO. This ensures a fair, transparent process.
Myths About IPO Allotment in Nepal
Is IPO allotment fair?
Yes! The allotment is done by software using a lottery method. There is no bias or favoritism — everyone has an equal chance.
Does Demat account matter?
No, there is no relationship between IPO allotment and which bank or DP holds your Demat account. There is an equal chance for all applicants regardless of their Demat account bank.
Does apply timing make any difference?
No. Since the information of applicants is randomly sorted, there should not be any importance of timing. Applying early or late does not affect your chances.
Is "Unverified" status a rejection?
No, "Unverified" signifies that your application is yet to be checked by the system. It does not mean rejection. The final status will be updated during the allotment process.