TaxTMI 
TaxTMI 
Illustration 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)]
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....cribed 4 times. (4) The issuer has fixed the minimum application/bid size as 20 specified securities (falling within the range of ten thousand to fifteen thousand rupees) and in multiples thereof. (5) 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 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 sec....
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.... (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 IDRs, the minimum application size shall be twenty thousand rupees. ^2[Part A1 - Illustration explaining the procedure of allotment for non-institutional investors Example A. (1) Total number of specified securities on offer @Rs. 600 per share: 1 crore specified securities. (2) Specified securities on offer for non-institutional investors' category: 15 lakhs specified securities. (3) Out of the total non-institut....
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....t of Rs. 2 Lakhs) + 119 specified securities [{5,00,000 - (500 * 340)} / {20,00,000 - (500* 340)}] * 660 (i.e. 1,000- 340) 4 D 1,400 340 specified securities (i.e. the minimum lot of Rs. 2 Lakhs) + 191 specified securities [{5,00,000 - (500 * 340)} / {20,00,000 - (500 * 340)}] * 1,060 (i.e. 1,400- 340) 5 E 1,660 340 specified securities (i.e. the minimum lot of Rs. 2 Lakhs) + 238 specified securities[{5,00,000 - (500 * 340)} / {20,00,000 - (500 * 340)}] * 1,320 (i.e. 1,660- 340) NOTE: For category 3(b), calculation methodology shall be similar to above. Example B. (1) Total number of specified securities on offer @ Rs. 600 per share: 1 crore specified securities. (2) Specified securities on offer for non-institutional investors' category: fifteen lakh specified securities. (3) Out of the total non-institutional investors' category, (a) Reserved for applications above two lakhs rupees and up to ten lakhs rupees -i.e., five lakhs of specified securities (b) Balance for applications above ten lakhs rupees - ten lakhs specified securities (4) The issue....
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....1,000 4,40,000 29 23 460 1,000 4,60,000 29 24 480 500 2,40,000 15 25 500 500 2,50,000 15 26 520 500 2,60,000 15 27 540 500 2,70,000 15 28 560 1,000 5,60,000 29 29 580 1,000 5,80,000 29 30 600 500 3,00,000 15 31 620 1,000 6,20,000 29 32 640 1,000 6,40,000 29 33 660 1,000 6,60,000 29 34 680 1,000 6,80,000 29 35 700 1,000 7,00,000 29 36 720 500 3,60,000 15 37 740 1,000 7,40,000 29 38 760 1,000 7,60,000 29 39 780 1,000 7,80,00....
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.... 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 50,000 4,48,50,000 1,471 NOTE: For applications under category 3(b), calculation methodology shall be similar to above.] ^4[Part A2 - Illustration explaining the procedure of allotment for non-institutional investors in case of initial public offer by SME companies. Example A. (1) Total number of specified securities on offer @Rs. 20 per share: 7.2 crore specified securities. (2) Specified securities on offer for non-institutional investors' category: 1....
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....00 18,000 specified securities (i.e. the minimum applications size) + 0 specified securities {Since, [{36,00,000 - (100 * 18000)} / {54,00,000 - (100 * 18000)}] * 6000 (i.e. 24,000-18,000) = 3000 securities; which is less than 1 lot, so no additional lot shall be allotted} 3 C 30,000 18,000 specified securities (i.e. the minimum applications size) + 6000 specified securities {Since, [{36,00,000 - (100 * 18000)} / {54,00,000 - (100 * 18000)}] * 12000 (i.e. 30,000-18,000) = 6000 securities} 4 D 42,000 18,000 specified securities (i.e. the minimum applications size) + 12000 specified securities {Since, [{36,00,000 - (100 * 18000)} / {54,00,000 - (100 * 18000)}] * 24000 (i.e. 42,000-18,000) = 12000 securities} 5 E 48,000 18,000 specified securities (i.e. the minimum applications size) + 12000 specified securities {Since, [{36,00,000 - (100 * 18000)} / {54,00,000 - (100 * 18000)}] * 30000 (i.e. 48,000-18,000) = 15000 secu....
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....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 3 18,000 600 90,00,000 60= (200/2000) *600 4 24,000 400 96,00,000 40 =(200/2000) *400 5 30,000 300 90,00,000 30 6 36,000 300 1,08,00,000 30 7 42,000 300 1,26,00,000 30 8 48,000 100 48,00,000 10 Total 2000 5,58,00,000 200] Part B - Illustration explaining minimum application size For inviting applications in multiples of the minimum value as referred to in sub-regulation (2) of regulation....