Update: I apologize for the error in this post where I opine that almost everyone has been allotted 1 lot; I spoke to a few people yesterday, and drew my conclusion from those conversations.
However, as is evident from your comments many of you didn’t get any shares. I am sorry about the error, and realize that I should have waited to get information from more people before publishing.
The MOIL IPO Allotment has been done today, and I think that everyone has been allotted 1 lot of 17 shares regardless of the quantity they applied for.
I say this based on the amount of money debited from the bank account. If you have applied for the MOIL IPO then please check your bank account, and I think it is quite likely that you see Rs. 6,056.25 debited from your bank account.
This means that you got 17 shares at the unit price of Rs. 356.25 (after 5% discount on Rs. 375).
Please leave a comment about the number of shares you applied for, and the money debited from your account, as that helps guess the ratio for future issues.
It is only apt that I highlight a comment made by Loney here earlier who accurately described what to expect in such cases where the over-subscription is reasonably high.
I think you should not have withdrawn the application. You should have applied for the minimum lot of 17 shares. Because, Karvy and NSE which will finalize the allotment has this particular habit of allotting shares even to people who bid for the minimum lot at the expense of people who apply for the maximum lot size within the limit. Therefore there was a probability that you were alloted 17 shares even if you subscribe for just one lot.
Thanks Loney!
Manshu,
Have been reading your blog for a very long time, but first time commenting here.
I’m pretty saddened by this allotment too… had applied for 221 shares (13 lots) thru ICICI direct and my application status was showing as “executed” and “accepted”. After reading your blog, went and checked Karvy’s IPO allotment site and was hugely disappointed to see not even one single share allotted!!
What’s the point of enticing the retail investors when we end up getting nothing and the money getting blocked for so many days expecting an allotment. Time for govt. to rethink their strategy i guess…
It’s a play of demand & supply Krish, and though I can understand your sense of disappointment – one should not lose the forest for the trees.
In the bigger picture where your retirement is say 30 or 35 years away or a child’s education expense that’s 10 years away – boring concepts like saving, and investing in SIPs etc. will build more wealth than getting a position of 17 shares which total to roughly 6,000 bucks or something.
So, yes, I feel that there is going to be some sense of disappointment, but in the bigger scheme of things, I hope you and others don’t get overly worked up, and start applying for IPOs that don’t have good strong fundamentals, or it will be like a Reliance debacle from some years ago.
I appled for 527 shares and got 17 shares.
I’d applied for 272 and got none.
Applied for 204. Got none.
Hi Friends,
I have applied for 517 shares (i.e. full quota of Rs. 2 lacs) for me alloted 1 lot of 17 shares.
The allotment has been done and 17 shares have been allotted to retail investors who bid for full quota of Rs.2 lakhs. Many smaller bids didn’t receive any allotment). This allotment will be decided by MOIL in consultation with the stock exchanges, Registrar and the Book running lead managers in order to be fair and equal.
I am expecting the share price on listing data it may cross Rs. 700 plus….
please share your comments with me…I am waiting for your reply…
For those who are not alloted any shares dont worry…in short period lot other good ipo’s ahead….
Thank you….have a nice day friends….
Kishore – You will find better luck in discussing these type of short term punting targets at sites like Chittorgarh, and Moneycontrol messages where there are plenty of forums for these type of discussions.
No one knows how a stock will open or close or whatever on a certain day, but that doesn’t stop people from idle speculation. To me, that’s not a useful thing to do with anyone’s time.
I had applied for 11 lots and got 1 lot alloted….
It’s ok 🙂 I just read about the logic they applied for allotment… and I think it was the most logical thing they could have done!
I had applied for 4 lots, thru’ HDFC Securities; The order is showing status as “Executed”, which means there was no error in the application;
I had applied at CUT-OFF price, which (I thought) guarantees that I’d get at least 1 lot (I had discussed this question with you guys in older MOIL post also)…
(http://www.onemint.com/2010/11/27/moil-ipo-subscription-numbers/)
BUT… I didn’t get any allocated 🙁 🙁
Sayantani – As you’ll see – you’re not alone and there are plenty of people who didn’t get anything despite applying for a much larger quantity than yours.
I had said in my earlier comment to you that if you apply at the cut – off you will get something, and I apologize for my mistake. AT that time I didn’t realize that the over – subscription is so much that they won’t be able to allot just one lot to everyone who applied.
The demand for this was just too high, and once I again I apologize for the mistake in my earlier comment to you.
allotted 17….. applied 527….
hope it may be opened at rs.600 on 15th.. after allotment v should focus on listing..
Lets move from MOIL (MOIL was a real ‘spoil’ for many of us) to P&S…Yes people its time for Punjab & Sind bank…The sale will open on 13 December and close on 16 December..The bank plans to sell around 40 million shares in an initial public offering (IPO). Retail investors will be sold shares at a discount of 5%. The government will dilute around 18% of its holding in the bank. The price band has been fixed between Rs 130 to Rs 120 per equity share for each share having face value of Rs 10 each..Lot size is 50..CARE has assigned 4/5 to the proposed IPO…Manshu please start new thread for P&S and lets hit the discussion..
Sorry MS – I have some travel and vacation planned from now on to the end of the year, and I won’t get the time to go through this prospectus – there are some post ideas on the Suggest a topic page that I have to get first, and the posting will get a little light for some time.
I have applied for 442 shares but not a single share allocated to me 🙁
Congratulations to those who got allotment!
1. In India, the retail participation is capital markets is very small.
2. A separate quota for retail investors was introduced with the aim that large investors should not block out allotment to small investors.
3. The retail participation in IPOs got reduced by the after-effects of the Reliance Power mania and the depression that followed.
4. This was further reduced by the greed of investment bankers who priced their issues very high in a way that the price cannot be explained on the basis of the fundamentals.
5. At this juncture, the Govt. decided to go in for fiscal consolidation
6. It decided to divest its holding in worthy PSUs.
7. Two of the Govt.’s public issues failed to lure investors (OIL, NHPC) and had to be rescued by LIC
8. C.B.Bhave lashes out at merchant bankers and asks them to price their issues sensibly thereby leaving something on the table for investors to get investors into IPO.
9. Govt. decides to price their issues attractively and also decides to give a 5% discount to retail investors.
10.COAL India IPO got tremendous response due to the attractive pricing mechanism adopted by the Govt.
11.Govt. wants SEBI to increase the retail limit to Rs.2 lakhs so that none of its issues would go down-under.
12.Power Grid FPO is a huge success.
13.Govt. pressurises SEBI to increases the retail limit.
14.SEBI increases the retail limit to Rs. 2 lakhs
15.Attractively priced MOIL issue comes after the huge success of PSU offers like COALINDIA and POWERGRID.
16. Investors rush to the issue leading to huge oversubscription.
17.Only 3% of the applicants to apply for the minimum lot gets allotment.
18. Only 50% of the applicants to apply for Rs.1 lakh get allotment.
19.The allotment is near 100% for applicants who apply for Rs.2 lakh.
20.Now Read points 1 and 2
I now leave it for open discussion.
very interesting analysis. in fact in this context, probably the mechanism that manshu (incorrectly) thought was being used for the moil allotments would have been the fairest.
Applied for 19 lots got 1 lot
I have applied for 34 shares only, but nothing I got.
I don’t know the system they adopted for allotment of MOIL IPO. So many of my friends have applied more than 200 shares, but they too do not got any share allotted.
Any guess about the allotment details?
MOIL issue has come and gone leaving most people unhappy. Many did not get any shares and others got too few shares not worth their efforts!
what do we learn from it?
a. should we stop subscribing in IPOs?
B. Should we limit our subscription to 1 lakh re
C. should we continue with 2 lakhs, hoping we
may be lucky to get more shares?
as the others have pointed out, your hypothesis is incorrect. i had applied for two lots, but got an email today that i haven’t been allotted anything.
the refund hasn’t come in yet either.
Yes, Aditya, and I apologize for my erroneous hypothesis.
come on, there is no need to apologize. you are not “god” and hence cannot be infallible 🙂
i’ve been following your blog since a while and have benefitted a lot from your excellent analyses. so let me also take this opportunity to thank you.
Your thoughts are much appreciated!
I have been alloted 17 shares too. Sort of disappointed 🙁
Applied for 306 shares.. Didn’t get a single share 🙁
One person I know, applied 2 full applications (2 lakh each) through his own and wife account but got shares only in for one application, nothing for second application, so there are people got no shares even with full application.
–
Jagbir
No Manshu,
This doesn’t seem to be right. I think we need to dig deeper on this allotment topic.
As far i understand the logic, it should be something like this. For people who have applied for 2 lacs they have got an allotment of 17 shares for sure. No role of probability here.
For people who have applied for anything less than that amounts, a different selection method based on some sort of lottery system has been applied. so, probability has come into picture.
For instance, people who have applied for 1 lac, probably 1 in every 2 persons has received the allotment.
Similarly people who have applied for say 50k, every 1 in 4 has received allotment for 17 shares. For people who have applied for 25k every 1 in 8 has received the allotment. and so on… with very less probability of getting allotment for people who have applied for just one lot.
I say this based on my past experience of power grid allotment and now MOIL allotment.
This time I had applied for 1.2 lacs each from 2 different accounts(Me and my wife). And have got 17 shares in 1 where as NIL in the other. So, in my case probability played out very evenly. If i had got allotment in both i would have been lucky. Whereas if i had got NIL in both the accounts, my strategy would have surely backfired.
So, in future i’ll apply in 2 different account only if am feeling lucky, whereas in single account if am not feeling so lucky 🙂 Assuming i have only 2 lacs to apply.
Regards
Raja
You’re right Raja – I spoke to a couple of people yesterday, and jumped the gun reaching the wrong conclusion.
I had applied for full lot but didnt even received 17 shares. I had applied online with ASBA facility. Difficult to predict Karvy’s allotment process.