The Basis of Allotment in an IPO is prepared by the Registrar to the Issue, in consultation with the stock exchanges. It explains how shares are allocated to investors across different categories. The allotment is done using predefined rules to ensure fairness and transparency, which may include Proportionate allotment (based on the level of demand), or Lottery / draw of lots when applications exceed available shares, especially in the retail category. This process is designed to ensure fairness and transparency, so investors can clearly understand why they received shares, fewer shares, or no allotment at all.
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