When we look at most of the comments on the high subscribed IPOs we found a few the questions like “I have not been allotted any shares”, “I haven’t got allotment in multiple applications”, “why I am not getting allotment in the last five IPO”. The things are very much clear that the lucky person gets the allotment in high subscription IPOs.
Sometimes there are few good IPOs in which even people who applied through just 1 application get the allotment while some apply in multiple numbers but still do not get an allotment. The things are clear in the scenario that the process is automated and the lucky winner is getting the allotment. We are here with some of the tricks and tips which can give a more chances to get the allotment in a good and high subscribed IPO. It will surely help you to increase IPO allotment chances.
Let’s talk about the IPO Allotment Process:
As per SEBI after October 2012 allotment of shares in a retail category is on a proportionate basis if the IPO is oversubscribed. In the case of oversubscription if one is applying for Rs.1,00,000, Rs.1,50,000, or Rs.2,00,000 the stock will be allotted as per the lottery system. The same stock will be allotted to the higher subscribed amount.
The basis of allotment for all the applied bids will be the same. As per current guidelines, there will be no allotment is less than the minimum bid lot size. You can check IPO subscription status on our portal with live numbers.
How to increase chances for IPO Allotment:
There are a few things you need to check before applying for the IPO. Here we recommend you to follow the below steps which will increase your chances to get the allotment in oversubscribed IPOs.
Step 1. Apply in more than 1 account for the same IPO
Do not apply with a maximum bid in just 1 account but use the multiple accounts for the subscription. You should apply via multiple IPO accounts for a high subscribed IPO. If the IPO subscribed 6 times and you applied in 6 different accounts it means you will get 1 application for sure.
The application numbers should be in line for the same. More accounts can give more chances for the allotment. In IPOs which highly oversubscribed and have a good listing gain expects IPOs with multiple accounts have more chances to have an allotment.
Step 2. Go for minimum bids, No big applications
As per the SEBI rules, the retail investors will get the allotment of the minimum shares in all the bids from minimum to maximum. We recommend that go for minimum bid only. For the oversubscribed IPOs, one should go for minimum bids with multiple accounts. That will help you to invest spare money in multiple IPOs as well.
Step 3. Apply with different application numbers
When you are applying IPOs that are going to have a huge subscription in retail one should apply with different application numbers. Do not apply in with numbers that are in one raw otherwise, you might not get the stock. if the IPO subscribed over 20 times and you applied in 6 different accounts then apply with the different numbers so in a lottery you might get a chance to have an allotment.
Step 4. Select cut off price / higher price band
For applying for the IPO one should keep in mind that those who apply with the higher price band aka cut-off price will get a maximum chance of the allotment. We recommend you to apply with a cut-off price for the IPOs in which you want to get the allotment in case of oversubscription.
Step 5. No last moment subscription
If you have a mindset that you are going to apply for the IPO then go for it on the very first day or on the second day. If you are going to apply it on the last day but it might cause a few issues like your bank account is not responding due to HNI and QIB high subscription. It is to take care that you do not miss the good IPOs.
Step 6. Fill in the details properly
Do not hurry in filling out the IPO forms. One should fill in the details properly like the amount, name, DP id, bank details, and more. There are printed forms also available so one should go with it as well. It’s a secure way to subscribe for IPO. You can go with ASBA via your bank but in which you need to check the details before applying the same. It will surely avoid technical rejection.
We are here to try to give the best of the information about IPO allotment. Just go through all the information about IPO like price band, company financial, grey market premium, Kostak rates, and more which can help you to apply for the good IPOs. Invest in the IPOs which are good to give the listing gain and the long-term gain as well.