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 that can give you more chances to get the allotment in a good and highly subscribed IPO. It will surely help you to increase IPO allotment chances.
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 less than the minimum bid lot size. You can check the IPO subscription status on our portal with live numbers.
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.
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 highly 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 that are highly oversubscribed and have a good listing gain IPOs with multiple accounts have more chances to have an allotment.
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 a 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.
When you are applying for IPOs that are going to have a huge subscription in retail you 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.
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 apply with a cut-off price for the IPOs in which you want to get the allotment in case of oversubscription.
If you have a mindset that you will apply for the IPO, then go for it on the very first day or the second day. If you are going to apply it on the last day it might cause a few issues like your bank account is not responding due to HNI and QIB high subscriptions. It is to take care that you do not miss the good IPOs.
Do not hurry to fill out the IPO forms. One should fill in the details properly like the amount, name, DP ID, bank details, and more. Printed forms are 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 IPOs like price band, company financials, grey market premium, Kostak rates, and more which can help you to apply for good IPOs. Invest in the IPOs which are good to give the listing gain and the long-term gain as well.
