Kitta, IPO allotment and why you get 10 kitta

What is kitta?

"10 kitta" = 10 shares. In a fixed-price IPO at Rs 100, 10 kitta costs Rs 1,000 (blocked in your bank via C-ASBA until allotment).

How allotment works

1. The issue closes; the issue manager counts valid applications in each quota (general public, and any reserved quotas such as employees, mutual funds, Nepalis in foreign employment, or project-affected locals).
2. If there are enough shares for every valid applicant to get 10 kitta, everyone gets 10, and any remaining shares go proportionally to those who applied for more.
3. If there are not enough, a computerised lottery picks winners. Each winner gets 10 kitta; the rest get nothing and their money is unblocked.
4. Results are published; you check with your BOID on CDSC's IPO Result site or in Meroshare.

Estimate your chance

Real example: in one microfinance IPO, 66,152 applicants received 10 kitta each and 3,81,697 received none — roughly a 15% chance, about 1 in 7 (ShareSansar). In very popular issues the odds can fall to 1 in 50 or worse.

Reserved quotas have their own pools, so the odds there can be very different. The prospectus and allotment notice list the quotas.

Practical tips

• One valid application per person per issue. Each family member can apply from their own demat.
• Keep the blocked amount in the account until allotment — a failed block means rejection.
• Check the result with your BOID: how to check your IPO result.
• Getting allotment is luck, not skill. Nobody can 'guarantee' IPO shares — avoid anyone who promises it for a fee.

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