People who invest in IPOs sometimes ask, “Why didn’t I get any shares in the IPO?” or “Even though I applied many times, why didn’t I get any?” or “How to increase chance of IPO allotment” It seems luck is important, especially in popular IPOs. What’s interesting is that some people with just one application get shares, while others with more applications don’t. This shows that the system is automated, and luck decides who gets shares in the end.
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We found some strategies on how to increase chance of IPO Allotment.
Choose the highest bid price (Cut-off price) when applying for the IPO
When you apply for an IPO, always choose the cut-off price. This means you agree to pay the highest price within the price range when the shares are allotted. If there are too many people wanting shares, they might reject applications with bids for the lower price, so it’s better to pick the cut-off price to increase your chances of getting IPO shares.
Apply Single Lot Application
If you apply for only one lot in an IPO, it might increase your chances of getting shares. However, it could be different if the IPO is undersubscribed or if the IPO is large, you can apply for multiple lots. But if the IPO is small, it’s better to stick to applying for just one lot.
Using More Than One Demat Account
Applying for an IPO in various Demat accounts can increase the chance of getting shares allotted. Just remember, each account needs a different PAN number from the one you are applying with.
Making UPI Payment with the Same Bank Account as Your Demat Account
If you use the same bank account for UPI or ASBA payments as your Demat account when applying for IPO, there’s a lower chance of rejection and a higher chance of getting allotted the IPO.
Avoid the Last Day for a Smoother IPO Application
It’s smart to check the membership numbers of QIB and NII, but waiting until the last moment can be tricky. You might face internet problems, issues with the bank server because At the end of an IPO, lots of people, especially big investors, try to buy shares.
Avoid Technical Rejection in IPO Applications
When you apply for an IPO, check that your demat account name, DP ID, bank details, and PAN card details are correct and match each other. Also, when you create your demat account, make sure these details are correct and match. If these details are not correct or do not match than your IPO application will be rejected.
Purchase Shares of the Parent Company
If you own a share of the main company in your Demat Account, you can apply in the Shareholder Category. But this works only if the parent company of the IPO is already listed on the stock exchange and has a reservation for its shareholders. This means your chances of getting shares are better in the shareholder category.
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FAQs
Usually, you should apply for an IPO only once from a bank account. But, banks like SBI and Axis Bank are let you apply for up to 5 IPOs from one bank account. They call this a third-party IPO application facility.
No, you can’t apply for the same IPO using different apps. The rules say all applications will be rejected if you do that. You’re only allowed to submit one application using your PAN card.
No, you will not receive IPO allotment if there is a mismatch between your PAN card and bank account details.
In an oversubscribed IPO, it will be counted as if you applied for one lot. In an undersubscribed IPO, it will be considered as if you applied for two lots. Always check the subscription status in the category you applied for, whether it’s retail, HNI, or QIB.
If the IPO is very popular, and you bid less than the upper price band, it’s unlikely you’ll get any shares.
SEBI updated the rules for how much money you can use through Unified Payment Interface (UPI) in IPOs, increasing it by Rs 5 lakh.