How to increase IPO allotment chance?

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.

Tagged With: ipoipo allotmentapply ipoinitial public offering
Categories: IPO Basics
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Related FAQs

What is an IPO or Initial Public Offering?

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.

How to check IPO allotment status in India?

IPO's (Initial Public Offering) is very popular right now. Therefore getting an allotment is not easy. There are two different ways in which you can find out your allotment status. These are through the BSE India website and the company Registrar's website. Know the details and another bonus way of finding out allotment status here.

Can a minor apply in IPO?

Have you ever wondered id a minor can apply for an IPO? Yes, a minor can apply for an IPO given that he/she has a PAN card and a Demat account.

Can we apply for an IPO online on Sunday?

Yes, you can apply for an IPO application on Sunday as well but through an online application. But, you need to keep few points in mind before doing that.

Can I apply more than one IPO application in my name from different saving bank accounts in same bank or different banks?

Only one PAN card can be used for one application. No matter how many different savings account details you might utilize, if there is the same PAN number in more than two applications, then all of them would be revoked.

Can a person apply in the non-institutional bidder category of an IPO?

Yes, an individual investor can apply through a non-institutional category of an IPO given that they have enough influx to bid in the category.

How to Check IPO allotment in Zerodha?

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.

Does IPO get allocated to people who apply first?

No, IPO allotment doesn't work like that. It is not dependent on who applied first, rather it is based on the total issue demand. There isn't a formula but a set process based on which the shares get allotted to different category of applicants.

Can we sell IPO shares immediately?

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.

What is Basis of Allocation or Basis of Allotment in IPO?

It is the document issued by the owner of the IPO for share allocated as per the regulatory guidelines in an IPO. This contains all the crucial details about the Initial Public Offering.