what is share application money pending allotment?

A company receives certain amount from shareholders' on application (known as share application money). Share Application Money Pending Allotment means amount received on application on which allotment is not yet made (pending allotment). Share Application Money Pending Allotment to the extent not refundable is included in Shareholders' Fund (as it is the amount received by the company against which allotment will be made). On the contrary, Share Application Money received and against which no allotment will be made (eg in case of oversubscription) is shown as Other Current Liability under Current Liabilities as the amount is refundable at some later date.