Following is the basis of allotment for Ujjivan Small Finance Bank IPO:


Explanation of Ujjivan Small Finance Bank Allotment basis

Ujjivan Small Finance Bank IPO - Basis of Allotment essentially indicates that 400 shares will be allotted on a lottery basis as under :

• For those who applied between 400 to 3200 or for 4000 or 5200 shares, allotment will be 400 shares in the ratio 35:1102 (Chances of Allotment: 3.17%)
• For those who applied for 3600 shares, allotment will be 400 shares in the ratio 36:1135 (Chances of Allotment: 3.17%)
• For those who applied for 4400 shares, allotment will be 400 shares in the ratio 27:844 (Chance sof Allotment: 3.19%)
• For those who applied for 4800 shares, allotment will be 400 shares in the ratio 55:1727 (Chances of Allotment: 3.18%)

The basis of allotment of CARE IPO is given below:
(Click on the image for a full screen view of Basis of Allotment)



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SEBI has come out with new allotment process for IPOs, which will incorporate a mechanism. Here's an attempt to understand the new mechanism of IPO allotment through an illustration:

For our exercise, let us assume the total number of specified securities (read equity shares) on offer to be 1 crore specified securities. Let's say these securities are on offer at Rs.600/- a share. Thus, specified securities on offer for Retail Individual Investors category would translate to 35,00,000 specified securities. Let's add that the issuer decides to fix the minimum application / bid size as 20 specified securities (falling within the range of Rs. 10,000 - Rs. 15,000). Application can therefore, be made for a minimum of 20 specified securities and in multiples thereof.

Let's further assume that the issue is over-subscribed 2.5 times whereas the Retail Individual Investors’ category is oversubscribed 4 times. Assume that a total of 100,000 Retail Individual Investors have applied in the issue, in varying number of bid lots i.e. between 1 – 16 bid lots, based on the maximum application size of upto Rs. 2,00,000 (i.e. Bid Lot 1 is for 20 shares, Bid Lot 2 for 40 shares, Bid Lot 3 for 60 shares and so on till Bid Lot 16 which will translate to 320 shares)

Out of the 100,000 Retail Individual Investors, let's say there are five retail individual investors A, B, C, D and E who have applied as follows:

• A has applied for 320 specified securities
• B has applied for 220 specified securities
• C has applied for 120 specified securities
• D has applied for 60 specified securities and 
• E has applied for 20 specified securities

Now, as per allotment procedure, the allotment to retail individual investors shall not be less than the minimum bid lot, subject to availability of shares, and the remaining available shares, if any, shall be allotted on a proportionate basis

The actual entitlement for allotment, thus, shall be as follows:


Okay. Now, in the above example, we assumed an overall over-subscription of 2.5 times and retail over-subscription of 4 times. But what happens if subscription if higher? Let's find out:

This time around, let's keep total no. of specified securities on offer (at Rs. 600 per share) unchanged at 1 crore specified securities. Specified securities on offer for Retail Individual Investors’ category therefore would be again: 35 lakh specified securities. Issuer decides to fix the minimum application / bid size as 20 specified securities (falling within the range of Rs. 10,000 - Rs. 15,000). Application can be made for a minimum of 20 specified securities and in multiples thereof

Let's now assume the issue is over subscribed 7 times whereas the Retail Individual Investors’ category is over subscribed 9.37 times.

Assume that a total of 200,000 Retail Individual Investors have applied in the issue, in varying number of bid lots i.e. between 1 – 16 bid lots (i.e. 16th lot at Rs.192,000 since the maximum application size of upto Rs.2,00,000)

Again, as per allotment procedure, the allotment to retail individual investors shall not be less than the minimum bid lot, subject to availability of shares, and the remaining available shares, if any, shall be allotted on a proportionate basis

Now since the total number of shares on offer to retail individual investors is 35,00,000 and the minimum bid lot is 20 shares, the maximum no. of investors who can be allotted this minimum bid
lot will be 1,75,000.

In other words,

• 1,75,000 Retail Investors will get the Minimum Bid Lot and  
• Remaining 25,000 retail applicants will not get allotment

The allotment in this case will be as follows:

The Basis of Allocation to the Retail Individual Investors, who have Bid at cut-off or at the Issue Price of Rs.135/- per Equity Share, was finalized in consultation with BSE. This category has been over subscribed to the extent of 2.6594 times. The total number of Equity Shares Allotted in Retail Individual Investor category is 2,951,266 Equity Shares to 8124 successful applicants. The category-wise details of the Basis of Allotment are (sample) as under:

The Retail Category has been over subscribed to the extent of 1.52 times. The total number of Equity Shares allotted In Retail Individual Investors category is 19,917,874 Equity Shares to 181,496 successful applicants. The categorv-wise details of the Basis of Allotment are as under:

Category	No. of Applications	% to total	Total No. of Equity Shares applied for	% to total	No.of Equity Shares allocated	Ratio	Total No. of Equity Shares allocated
10	12,322	6.64	123,220	0.41	10	25:38	81,070
20	12,850	6.92	257,000	0.85	13	1:1	167,050
30	8,548	4.60	256,440	0.85	20	1:1	170,960
40	5,636	3.03	225,440	0.74	26	1:1	146,536
50	12,668	6.82	633,400	2.09	33	1:1	418,044
60	2,648	1.43	158,880	0.52	39	1:1	103,272
70	1,903	1.02	' 133,210	0.44	46	1:1	87,538
80	5,192	2.80	415,360	1.37	53	1:1	275,176
90	1,331	0.72	119,790	0.40	59	1:1	78,529
100	14,127	7.61	1,412,700	4.66	66	1:1	932,382
110	975	0.53	107,250	0.35	72	1:1	70,200
120	1,197	0.64	143,640	0.47	79	1:1	94,563
130	667	0.36	86,710	0.29	85	1:1	56,695
140	667	0.36	93,380	0.31	92	1:1	61,364
150	3,685	1.98	552,750	1.82	99	1:1	364,815
160	35,973	19.37	5,755,680	19.00	105	1:1	3,777,165