The applicant might not be allotted the shares or the number applied for when there is an IPO oversubscription. The IPO allotment depends on which category you applied for.
Shares in the QIB category are distributed proportionally. If the issue is subscribed 5 times, an applicant applying for 10 lakh shares will only receive 2 lakh shares.
HNI also receives an allotment proportionately.
Case 1 - RII Applications Are Less Than or Equal to the Offered Lots
Each applicant will be first given at least one lot. The remaining lots are divided proportionally.
Case 2 - RII Applications Are Greater Than the Lots offered
This case involves a computerized draw that selects applicants for the IPO allotment.