In case an IPO is oversubscription, the company first adds up all the retail bids to divide this amount with the minimum ‘lot’ value to know the number of retail investors to be allotted shares. For example, if a company has offered Rs. 10 lakh worth of shares and the minimum lot is Rs. 1,000, then 1,000 retail investors will be allotted shares. If there are more retail investors who have bid, the eligible retail investors are selected using a computerised draw.