Predict the future

The Exato Technologies SME IPO stirred a wave of optimism among retail and HNI investors. Social-media clippings of subscription numbers kept doing the rounds. But behind the hype lies a hard reality many missed:

> If you applied for Exato Technologies SME IPO, you almost certainly did NOT get even one lot.

This isn’t bearish speculation — it’s just plain math plus the structural rules of SME IPO allotment.

---

📌 Retail vs sHNI vs bHNI: The Real Picture

Many investors got confused about which category they actually qualified for.

Here’s how it works:

Retail — applies to total application value up to ₹2 lakh

sHNI (Small HNI) — applies to applications of ₹2 lakh to ₹10 lakh

bHNI (Big HNI) — applies to applications above ₹10 lakh

In many SME IPOs (including Exato’s), the minimum application size is 2 lots. This automatically pushes many applicants out of Retail, even when the total investment hovers around ₹2.5–3 lakh.

Thus:

🔹 Many who considered themselves “retail investors” were actually in sHNI category.

🔹 And once you cross into HNI brackets, the allotment dynamics change drastically — not in your favor when demand is extreme.

---

📌 Why Allotment Was Practically Impossible in Exato Technologies IPO

Unlike mainboard public offerings, SME IPOs do not rely on a “lottery” system for allotment under retail. Instead, they use proportionate allotment across all categories.

The result:

Oversubscription reduces each applicant’s share proportionately.

In extremely oversubscribed issues — especially one like Exato — the share per applicant becomes a tiny fraction. That fractional share rounds down to zero lots.

So whether you applied for ₹3 lakh, ₹10 lakh, or ₹1 crore, you all dealt with the same problem: demand far outstripped supply.

Hence — the demand was so high that, mathematically, almost no one got allotment.

---

📌 When Big Numbers Mislead: Why High Subscription Doesn’t Mean High Success

You might have seen headlines like:

Retail — 900× subscribed

NII — 300× subscribed

Total — 450× subscribed

Naturally, investors read them and felt confident.

But here’s the catch:

✔️ High subscription = intense competition = extremely low allotment chances for individual investors.

✔️ The crazier the demand, the less likely you are to get any shares — because proportions shrink.

Even a thousand applications won’t improve your proportional share — if oversubscription is that high, allotment per applicant can be rounded to zero.

---

⚠️ What Exato IPO Taught Investors: A Reality Check

✅ Knowing the correct application category (Retail / sHNI / bHNI) isn’t optional — it determines allotment dynamics.

✅ A high oversubscription ratio isn’t good news — it’s a warning flag: your share may vanish.

✅ SME IPOs with massive hype rarely end up with allotments for small investors.

✅ Always treat participation as speculative: allotment and profit are uncertain — especially in hot SMEs.

💬 Final Verdict

The Exato Technologies IPO looked thrilling on paper. But once the applications piled in, the reality set in: massive oversubscription + proportionate allotment = virtually zero allotment for most.

If you participated as a retail or small HNI — you likely faced the same fate.

The takeaway? Don’t let subscription numbers cloud your judgment. In SME IPOs like Exato’s, the dream of big gains must always walk hand-in-hand with the realism of near-zero allotment chances.