Allotment & Guide27 Sept 2026
Oversubscribed 80 Times? How the Computerized IPO Lottery System Really Works
When an IPO says oversubscribed 80x, why won't applying for 10 lots help? Learn SEBI's proportionate vs lucky draw rules using the festival sweet box raffle analogy.
IPOChacha Research Desk
5 min read
Understanding Oversubscription Numbers
When business news reports an IPO is oversubscribed 80 times, it means the public applied for 80 shares for every single share available for sale. For beginners, this sounds intimidating, but how does the registrar decide who gets shares?
Real-World Analogy: The Festival Sweet Box Raffle
Suppose a popular sweet shop prepares only 1,000 limited-edition festive sweet hampers, but 50,000 eager customers queue up outside. The shopkeeper cannot break the boxes into crumbs. Instead, SEBI rules mandate a computerized lucky draw: each unique applicant gets exactly one raffle token. Applying for 5 lots under the same PAN does NOT give you 5 tokens—it is treated as 1 single entry in retail.
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