TMI BlogILLUSTRATION EXPLAINING THE PROCEDURE OF ALLOTMENT for retail individual investors [See regulation 47(3), 49(5), 145(5), 192(1)(a), 204(4), 267(3), 143(3) and 268(5)]X X X X Extracts X X X X X X X X Extracts X X X X ..... the issue, in varying number of bid lots i.e. between 1 16 bid lots, based on the maximum application size of up to two lakh rupees. (6) Out of the one lakh investors, 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. (7) As the allotment to a retail individual investor cannot be less than the minimum bid lot, subject to availability of shares, the remaining available shares, if any, shall be allotted on a proportionate basis. The actual entitlement shall be as follows: Sr. No. Name of Investor Total Number of specified securities applied for Total number of specified securities eligible to be allotted 1 A 320 20 specified securities (i.e. the minimum bid lot) + 38 specified securities [{35,00,000 - (1,00,000 * 20)} / {140,00,000 - (1,00,000 * 20)}] * 300 (i.e. 320-20) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... No. of investors who shall receive minimum bid-lot (to be selected by a lottery) A B C D= (B*C) E 1 20 10,000 2,00,000 8,750 = (1,75,000/2,00,000)*10,000 2 40 10,000 4,00,000 8,750 3 60 10,000 6,00,000 8,750 4 80 10,000 8,00,000 8,750 5 100 20,000 20,00,000 17,500 6 120 20,000 24,00,000 17,500 7 140 15,000 21,00,000 13,125 8 160 20,000 32,00,000 17,500 9 180 10,000 18,00,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 40 to 1660 specified securities), based on the maximum application size of up to ten lakh rupees. (8) Out of the five hundred investors, there are five non-institutional investors A, B, C, D and E who have applied as follows: A has applied for 340 specified securities. B has applied for 500 specified securities. C has applied for 1,000 specified securities. D has applied for 1,400 specified securities and E has applied for 1,660 specified securities. (9) As the allotment to a non-institutional investor cannot be less than the minimum application size, subject to availability of shares, the remaining available shares, if any, shall be allotted on a proportionate basis. The actual entitlement shall be as follows: Sr . No . Name of Investor Total Number of specified securities applied for Total number of specified securities eligible to be allotted 1 A 340 340 specified securities (i.e. the minimum applications size) 2 B 500 340 specified securities (i.e. the mini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upees. (8) As per the allotment procedure, the allotment to non-institutional investors shall not be less than the minimum application size, subject to availability of shares. (9) Since the total number of specified securities on offer to the non-institutional investors applications under 3(a) is 5,00,000 and the minimum application size is 340 specified securities, the maximum number of non-institutional investors who can be allotted this minimum application size should be 1,471. In other words, 1,471 applicants shall get the minimum application size and the remaining 48,529 applicants will not get any allotment. The details of the allotment shall be as follows: No . of lots No . of shares at each lot No . of investors applying at each lot Total no . of shares applied for at each lot No . of investors who shall receive lots according to minimum application size ( to be selected by a lottery ) A B C D = ( B * C ) E 17 340 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,80,000 29 40 800 1,000 8,00,000 29 41 820 1,000 8,20,000 29 42 840 1,000 8,40,000 29 43 860 500 4,30,000 15 44 880 1,000 8,80,000 29 45 900 1,000 9,00,000 29 46 920 1,000 9,20,000 29 47 940 1,000 9,40,000 29 48 960 1,000 9,60,000 29 49 980 1,000 9,80,000 29 50 1000 1,000 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 73 1460 500 7,30,000 15 74 1480 500 7,40,000 15 75 1500 500 7,50,000 15 76 1520 500 7,60,000 15 77 1540 500 7,70,000 15 78 1560 500 7,80,000 15 79 1580 500 7,90,000 15 80 1600 500 8,00,000 15 81 1620 500 8,10,000 15 82 1640 500 8,20,000 15 83 1660 500 8,30,000 15 TOTAL ..... X X X X Extracts X X X X X X X X Extracts X X X X
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