IPO Allotment Tips

IPO Allotment Tips – How to Increase IPO Allotment Chances

Getting an IPO (Initial Public Offering) allotment is mostly a game of luck in India due to the high demand for popular IPOs. However, there are several strategies to improve your chances. Here are some key IPO allotment tips:

1. Apply Through Multiple Demat Accounts

  • SEBI follows a lottery system for retail investors.
  • Applying through multiple family members’ accounts increases your chances.

2. Apply for a Single Lot

  • Retail investors have a better chance when applying for a single lot rather than multiple lots.
  • This is because IPO allotment in the retail category follows the proportional distribution method.

3. Use Different PAN Numbers

  • Submitting multiple applications from the same PAN won’t work.
  • Ensure each family member applies separately using their own PAN and Demat account.

4. Apply via UPI for Faster Processing

  • Use UPI for ASBA (Application Supported by Blocked Amount) as it speeds up the process.
  • Ensure the UPI mandate is accepted on time to avoid rejection.

5. Choose Cut-off Price

  • Always select the “Cut-off Price” option while applying.
  • This means you are willing to pay the highest price within the price band, improving your allotment chances.

6. Avoid Technical Rejections

  • Double-check details like PAN, Demat account number, and bank details.
  • Ensure sufficient funds in your account for ASBA blocking.

7. Apply Early

  • Don’t wait until the last day to apply.
  • Sometimes, banks and brokers face technical glitches on the final day, leading to unsuccessful applications.

8. Apply in Shareholder or Employee Category (If Eligible)

  • Some IPOs reserve shares for company shareholders and employees.
  • If you hold shares in the parent company (like SBI for SBI Cards IPO), apply in the shareholder category for better chances.

9. Check Subscription Status

  • If an IPO is heavily oversubscribed, chances of allotment reduce.
  • In such cases, avoid applying for more than one lot and focus on applying through different accounts.

10. Consider Small & Less Popular IPOs

  • Many investors chase big IPOs, which are often oversubscribed.
  • Applying for smaller IPOs with decent fundamentals increases the probability of allotment.

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