How to increase IPO allotment chance?
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- Updated On:19-Mar-2021
- Replies:1
Short Answer
Subscribing for an IPO with multiple accounts, avoiding last-day applications, and choosing minimum bids are few ways to increase IPO allotment chances.
Detailed Answer
IPO allotments are quite tricky to get, provided the IPO is a hot take on all investors. IPO's are great because they are the initial offerings instigated by a company before the prices skyrocket due to the demand. However, if you want to get a piece of the action beforehand, you could apply it. however, getting allotted is the difficult process. If you're looking to increase your chances of allotment, then follow the below-given pointers.
Increase in IPO allotment chances
1. Apply with more than one account
Apply for an IPO with more than one application. Well, let's get one thing cleared. You can apply for an IPO only "once" with one PAN card number. However, you can apply for the same IPO multiple times with your family and friends' help. Thus, applying more could at least fetch you one allotment.
2. Go for minimum bids
Do keep in mind that with an oversubscribed IPO, everyone will get minimum shares based on a lottery system. Hence, don't bid maximum amount of shares but go for the bare minimum that the IPO has come out with. Also, you could use the spare money in another IPO to test your chances of getting an allotment.
3. Avoid last-minute subscriptions
If you want to apply for an IPO, then directly apply for it. Never think twice as every minute goes by; thousands are eyeing the IPO allotment. Hence, skip waiting for the last and apply then and there. You could miss out on the allotment if you choose the last day of application due to technical glitches with your bank, application error, and so on.
Conclusion
IPO allotments work based on a lottery system if the IPO is oversubscribed. Hence, don't expect anything unless and until the IPO is undersubscribed. Moreover, try to figure out undervalued IPO allotments where the subscription rates are lower. Yes, it's a gamble of an investment, but then making a fortune quickly is possible if it pays off.
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Discussion (0)
IPO prospectus is the document which gives information to the investors about the company statistics before they issue shares in public. It is mainly a 3 step process. For detailed description, read through the blog below.
An IPO or Initial Public Offering is where for the first time an earlier unlisted company sells new or existing securities and offers them to the public in the primary market.
There are many ways to check the IPO allotment status but Zerodha doesn't provide this facility on their website.** To check the allotment status you can visit the website of the registrar of the IPO**, for example, Link Intime, Karvy. With the help of a PAN number, you can easily check the status.
IPO or Initial Public Offering is the process through which a private company goes public by offering its shares to the public for the first time.
In an Initial Public Offering (IPO) a company sells its shares to investors in order to raise money. As a retail investor, you can apply for an IPO from the primary market in order to get the shares offered by the company. Once the shares get listed on the secondary market, you can sell your shares provided you have received an allotment in the primary issue.
Yes, you can apply for an IPO application under a minor or HUF's name, provided they have different PAN card numbers. Minors can open a Demat account with their parent’s PAN Card and bank account.
IPO is the primary stage where the company goes public and starts gaining investments from people. It is essential for the company to manage the details properly. For Public, IPO should remain open for at least 6 days and for maximum 10 days.
IPOs can be a good option for beginners as they provide an opportunity to get the shares of good companies at an attractive price. Though IPOs can provide good listing gains and quick profits, good companies can help you to create massive wealth in the long term.
No, the application process for an IPO can be availed with zero brokerage fees. Applying in an IPO is free of cost and you don't have to bear a fee.
Yes, it is mandatory to have a PAN number to apply for an IPO since July 2006 as per Securities and exchange board of India (SEBI).