How to Increase IPO Allotment Chances: Smart Tricks

Hello everyone! There are so many exciting IPOs like #NSDL and #AnthemBiosciences constantly coming to the market, now getting the IPO allotment is very hard. While the final allotment does involve a lottery system, there are smart, proven ways to significantly increase your odds.

Let's break down these strategies to help with the IPOs!

Tip 1: Use Multiple Demat Accounts

This is arguably one of the most effective tricks in the book! You can apply for an IPO using different Demat accounts, provided each account is linked to a unique Permanent Account Number (PAN).

If your family members – such as your spouse, parents, or adult children – have their own Demat accounts, each individual can submit an application. More unique applications translate to significantly better chances in the IPO lottery!

Remember: SEBI rules strictly enforce only one application per PAN. Any duplicate applications tied to the same PAN will lead to rejection.

Tip 2: Always Bid at the "Cut-Off Price"

When you're submitting your IPO application, you'll see a price range, often referred to as the "price band." It's crucial to select the "cut-off price" option. This indicates your willingness to pay the highest price set within that band.

Why is this important? In popular IPOs, which are almost always oversubscribed, shares are typically allotted at the upper end of the price band. If you bid at a lower price, your application might be automatically rejected if the final offer price is set higher than your bid. Bidding at the cut-off ensures your application remains eligible, even if the issue is heavily oversubscribed.

Tip 3: Opt for a Single Lot in Oversubscribed IPOs

This might sound a bit odd, but if an IPO receives an overwhelming response and gets subscribed multiple times over (e.g., 20x, 50x, or even more!), applying for a large number of lots as an individual investor doesn't necessarily improve your chances.

SEBI regulations often prioritize ensuring that as many unique retail investors as possible receive at least one lot. Therefore, applying for a single lot from each valid family Demat account can actually be your secret weapon, increasing the probability of getting at least a small allocation across your applications.

Tip 4: Don't Wait Until the Very Last Minute!

While the IPO allotment system is not about "first come, first served," submitting your application early is still a smart move. The last day of an IPO subscription period often witnesses a massive rush, which can lead to technical glitches, server overloads, or payment processing issues.

Moreover, ensure your UPI mandate is approved immediately after you apply. Delays or failures in approving the UPI mandate can result in your application being rejected, simply due to a procedural oversight. Applying early gives you a buffer to resolve any potential hiccups.

Final Thought: Research & Stay Patient

Beyond these tactical tips, always conduct thorough research on the company before you invest your hard-earned money. Understand their business model, financial health, and future prospects. And remember, securing an IPO allotment can still be challenging, even with all these strategies.

The world of IPOs offers exciting opportunities. Keep trying, keep learning, and keep investing smart! Good luck!