Basis Of Allotment
The basis of allotment defines the criteria for distributing shares to investors, typically during IPOs. It outlines key details like the share allocation ratio, bids, demand, and final price. Allocation criteria differ by investor type, including Retail Individual Investors (RII), Qualified Institutional Buyers (QIB), Non-Institutional Buyers (NIBs), High Net-worth Individuals (HNIs), and Anchor Investors. Each category may face a unique basis of allotment, reflecting their bid size, demand, and investor classification.
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