How to Increase Your Chances of IPO Allotment: Smart Strategies for Retail Investors
1. 🧐 Introduction
IPO investing is exciting. When a good company announces an IPO, everyone rushes to apply. Some investors are lucky. They get IPO Allotment and get shares and enjoy profits. Others, however, get nothing. So, what makes the difference? Luck plays a part. But there are smart ways to improve your chances too. In this blog, we will explore simple yet effective steps to help retail investors like you get better results in IPO allotments.
🤷 Why You May Not Get IPO Allotment
You may apply for an IPO. Still, you might not get any shares. Why?
When an IPO gets oversubscribed, more people apply than the number of shares available. For example, if a company offers 1 crore shares but receives 10 crore applications from retail investors, only 1 out of every 10 applicants gets a lot.
In oversubscribed IPOs, the system randomly picks retail investors through a lottery. It uses an automated process to decide who gets shares. Hence, not everyone gets a share.
Still, there are methods to increase your chances. Let’s understand how the allotment system works first.
3. 📊 How Retail Investors Are Allotted Shares
Retail investors can apply for up to ₹2 lakh in an IPO. If the IPO is not fully subscribed, you may get all the shares you apply for. But when it is oversubscribed, the allotment is limited.
Each investor gets one lot on a lottery basis. A lot is the minimum number of shares you can apply for (say, 15 shares).
Let’s say 10 lakh lots are available, and 30 lakh investors applied. Then, only one-third will get shares.
So, your PAN and Demat account will be entered into a random draw. This lottery decides who gets the allotment.
4. 💡 15 Smart Strategies to Increase IPO Allotment Chances
Here are the most effective steps retail investors can take:
1️⃣ Apply Through Multiple PANs (Family Members)
Use the PAN and Demat accounts of your spouse, parents, or adult children. Each PAN is treated as a unique investor. This increases your chances across applications.
Example: If 4 family members apply, your chances multiply by 4.
2️⃣ Always Apply for One Lot (If Oversubscription Is Expected)
Don’t apply for the full ₹2 lakh. In oversubscribed IPOs, applying for one lot gives you the same chance as applying for the full amount. Applying for more won’t increase your chances in this case.
3️⃣ Apply Early (Preferably on Day 1 or Day 2)
Sometimes, banks or brokers face technical issues on the last day. Apply early to avoid rejection or delays.
4️⃣ Use UPI Through Trusted Brokers or Banks
UPI is quick and reduces errors. But always check that your UPI is correctly linked to your bank. Approve the UPI mandate on time.
5️⃣ Use Different Brokers for Each Family Member
Different brokers may have different tie-ups or systems. This reduces the chance of rejection due to system glitches.
6️⃣ Check Fund Balance Before Applying
Ensure your account has enough money. Your application will be rejected if your bank blocks less than the required amount.
7️⃣ Avoid Technical Errors (Name, PAN, UPI ID)
Double-check all details. PAN, UPI ID, bank account, and Demat details should match. Even one mismatch can lead to rejection.
8️⃣ Use Net Banking ASBA for Large Banks
ASBA is secure and reliable. It blocks your money until allotment. Use net banking ASBA if your bank supports it.
9️⃣ Avoid Multiple Applications from One PAN
If you apply more than once using the same PAN, all applications will be rejected. Apply only once per PAN.
🔟 Apply at the Cut-Off Price
Retail investors should always tick the “Cut-Off” option. It means you agree to the final price, whatever it is. This ensures your application is valid.
1️⃣1️⃣ Avoid Last-Day Rush (Banks May Set Early Cut-Offs)
Some banks or brokers stop taking IPO applications hours before the official cut-off. Apply at least a few hours before the final day ends.
1️⃣2️⃣ Don’t Rely Only on UPI Mandates
Sometimes, UPI notifications don’t come. You can check and approve the mandate directly through your UPI app (like Google Pay, PhonePe, etc.).
1️⃣3️⃣ Track Application Status with Registrar
Use registrars like KFintech or Link Intime to track your IPO application status. You’ll know if it was accepted or rejected.
1️⃣4️⃣ Monitor Subscription Levels Daily
If the retail category is highly oversubscribed on Day 2 itself, applying through multiple accounts becomes more important.
1️⃣5️⃣ Use Brokers with High IPO Allotment Success Rate
Some brokers or fintech platforms have better systems or faster approval mechanisms. Test different ones for better results.
5. ❌ Things to Avoid While Applying
- Don’t apply through the same PAN more than once
- Avoid using incorrect UPI IDs or wrong bank accounts
- Don’t wait until the last hour
- Don’t skip the cut-off price option
- Never assume IPO allotment is guaranteed
6. 🤔 What to Do If You Don’t Get Shares
No worries. You can:
- Wait for the shares to list and buy from the market (at your risk).
- Use the blocked funds for other IPOs.
- Apply again in future IPOs using improved strategies.
Remember, many successful investors didn’t get their first IPO allotment either. Patience matters.
7. 💭 Common Myths Around IPO Allotment
Let’s clear some confusion:
❌ Myth: Bigger application size = higher chance
Truth: For retail investors, one-lot applications are prioritized in oversubscribed issues.
❌ Myth: One broker gives better allotment than others
Truth: Allotment is a SEBI-regulated lottery system.
❌ Myth: Applying last minute increases chances
Truth: Last-minute rush may cause UPI or banking delays.
8. ✅ Final Thoughts
Getting shares in a popular IPO is tough. But you can still improve your odds. By applying smartly — across family PANs, on time, with correct details, and through trusted methods — you increase your chances.
While there’s no magic trick to guarantee allotment, these practical steps help you stay ahead of many applicants.
So, next time a hot IPO comes up, don’t just apply. Apply smartly.
🟢 Key Takeaways
- Apply using multiple family members’ PANs.
- Stick to one-lot applications in oversubscribed IPOs.
- Always apply early and at the cut-off price.
- Avoid errors and double applications.
- Stay patient — IPOs are a game of numbers and luck.
Share this content:
Post Comment