(1) The allotment of specified securities to applicants other than anchor investors shall be on proportionate basis within the specified investor categories and the number of securities allotted shall be rounded off to the nearest integer, subject to minimum allotment being equal to the minimum application size as determined and disclosed by the issuer:
value of specified securities allotted to any person in pursuance of reservation made under clause (a) of sub-regulation (1) or clause (a) of sub-regulation (2) of regulation 42, shall not exceed one lakh rupees.
(2) The executive director or managing director of the designated stock exchange along with the post issue lead merchant bankers and registrars to the issue shall ensure that the basis of allotment is finalised in a fair and proper manner in accordance with the allotment procedure as specified in .
SEBI (Issue of Capital and Disclosure Requirements) (Amendment) Regulations, 2009, w.e.f. 11.12.2009
SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2010, w.e.f. 12.11.2010
SEBI (Issue of Capital and Disclosure Requirements) (Fourth Amendment) Regulations, 2012, w.e.f. 12.10.2012
ICDR – SCHEDULE XV
Schedule XV
[See regulation 50 (2), 106 and Schedule XI]
ILLUSTRATION EXPLAINING PROCEDURE OF ALLOTMENT
A.
(1) Total no. of specified securities on offer@ Rs. 600 per share: 1 crore specified securities.
(2) Specified securities on offer for retail individual investors‘ category: 35 lakh specified
securities.
(3) The issue is over-subscribed 2.5 times whereas the retail individual investors‘ category is oversubscribed 4 times.
(4) Issuer decides to fix the minimum application / bid size as 20 specified securities (falling
within the range of Rs. 10,000 – 15,000). Application can be made for a minimum of 20 specified securities and in multiples thereof.
(5) Assume that a total of one lakh 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.
(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 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 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) |
| 2 | B | 220 | 20 specified securities (i.e. the minimum bid lot) + 25 specified securities [{35,00,000 - (1,00,000 * 20) / {140,00,000 - (1,00,000 * 20)}] * 200 (i.e. 220-20) |
| 3 | C | 120 | 20 specified securities (i.e. the minimum bid lot) + 13 specified securities [{35,00,000 - (1,00,000 * 20)} / {(140,00,000 - (1,00,000 * 20)}] * 100 (i.e. 120-20) |
| 4 | D | 60 | 20 specified securities (i.e. the minimum bid lot) + 5 specified securities [{(35,00,000 - 1,00,000 * 20)} / {(140,00,000 - (1,00,000 * 20)}] * 40 (i.e. 60-20) |
| 5 | E | 20 | 20 specified securities (i.e. the minimum bid lot) |
B.
(1) Total no. of specified securities on offer @ Rs. 600 per share: 1 crore specified securities.
(2) Specified securities on offer for retail individual investors‘ category: 35 lakh specified
securities.
(3) The issue is over subscribed 7 times whereas the retail individual investors‘ category is over subscribed 9.37 times.
(4) Issuer decides to fix the minimum application / bid size as 20 specified securities (falling within the range of Rs. 10,000 – 15,000). Application can be made for a minimum of 20 specified securities and in multiples thereof.
(5) Assume that a total of two lakh 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, as per the table shown below.
(6) As per allotment procedure, the allotment to retail individual investors shall not be less than the minimum bid lot, subject to availability of shares.
(7) 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 applicants will get the minimum bid lot and the remaining 25,000 retail applicants will not get allotment.
The details of allotment shall be as follows:
| No. of Lots | No. of Shares at each lot | No. of retail Investors applying at each lot | Total No. of Shares applied for at each lot | No. of investors who shall receive minimum bid-lot (to be selected on 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 | 8,750 |
| 10 | 200 | 15,000 | 30,00,000 | 13,125 |
| 11 | 220 | 10,000 | 22,00,000 | 8,750 |
| 12 | 240 | 10,000 | 24,00,000 | 8,750 |
| 13 | 260 | 10,000 | 26,00,000 | 8,750 |
| 14 | 280 | 5,000 | 14,00,000 | 4,375 |
| 15 | 300 | 15,000 | 45,00,000 | 13,125 |
| 16 | 320 | 10,000 | 32,00,000 | 8,750 |
| Total | 2,00,000 | 328,00,000 | 1,75,000 |
Note: For the purpose of IDR, minimum application size shall be twenty thousand rupees.