How to Increase IPO Allotment Chances

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How to increase ipo allotment: Investing in an Initial Public Offering (IPO) can be thrilling, offering a chance to own shares of a promising company at its stock market debut. However, with oversubscribed IPOs becoming the norm—especially in markets like India—securing an allotment often feels like winning a lottery. Getting an IPO allotment can be tricky due to the high demand for popular issues. However, you can increase your chances by following these strategies:

1. How to Increase IPO Allotment Chances in the Retail Category (Below ₹2 Lakh Investment)

Retail investors (applying under ₹2 lakh) have a better chance due to the SEBI allotment process, which follows the lottery system when the issue is oversubscribed.Apply for one lot instead of multiple lots. If oversubscription occurs, applying for multiple lots does not improve your chances.

2. Use Multiple Demat Accounts

Apply through different family members’ Demat accounts (spouse, parents, siblings) to increase the probability of getting an allotment.SEBI rules allow one PAN per application, so multiple applications using different PANs (family members) help.

3. Apply Using ASBA or UPI Correctly

Always apply via ASBA (Application Supported by Blocked Amount) or UPI correctly to avoid rejections. Ensure that there is sufficient balance in your account to avoid technical rejections.

4. Prefer Cut-Off Price for Retail Category

Always select the “Cut-off price” option while bidding to maximize chances.If you bid at a lower price than the issue price, your application may be rejected.

5. Timely Submission is Key to Increasing IPO Allotment Chances

Submit applications within the IPO window. Late submissions are rejected.

Final Thoughts While there’s no magic formula to guarantee IPO allotment, combining these strategies with disciplined research can significantly boost your chances.

FAQ

Below is list of Questions Frequently asked

1.What is the relevance of bidding at the cutoff price?

Bidding at the cut-off price shows that you are prepared to accept the final price set by the Company. This method can increase your chances of receiving an IPO allotment, especially in high-demand IPOs.

2. Does applying for a single lot improve my allotment chances?

Applying in the retail category works on a lottery system when an IPO is oversubscribed. Whether you apply for a single lot or multiple lots, it doesn’t increase your chances. If your application is picked in the lottery, you’ll get the allotment—otherwise, not. So, applying for more lots won’t improve your chances in such cases.

3. Should I apply through multiple Demat accounts?

Yes, applying through multiple Demat accounts with different PANs (such as those of your family members) can increase your chances of getting an allotment, as each eligible application is treated separately in the lottery process. However, ensure that all applications comply with SEBI regulations and do not violate any anti–money laundering rules. Misuse or duplication of PAN details can lead to rejection or even regulatory action.

4. Will applying early improve my allotment chances?

No, applying early doesn’t guarantee more allotments—the system is random. However, applying early helps avoid technical issues and last‑minute glitches .

5. Can investing in the parent company’s shares make a difference?

Yes! Many IPOs reserve a quota for existing shareholders. Holding even one share of the parent company on the RHP date can help you qualify for this category and improve chances.

6. How can I avoid technical rejections?

To minimize rejections, ensure: Accurate PAN, Demat & bank info, It’s linked with ASBA/UPI ,Sufficient funds in your account ,Small errors or insufficient funds can cause automatic rejection. Banks eligible as Issuer Banks for UPI Can Check here SEBI’s official website.

7. Is it better to apply for multiple IPOs rather than multiple lots?

Yes. Diversifying across several IPOs means you don’t rely on just one opportunity. It’s smart to spread risk and participation.

Also Read: Upcoming IPO List 2025 – Stay Ahead of the Market

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