- IPOWatch Team
- December 23, 2023
- . . 6 Comments
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. Lets talk about how to increase IPO Allotment chances.
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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.
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 less than the minimum bid lot size. You can check the 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 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.
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 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.
Step 3. Apply with different application numbers
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.
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 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 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.
Step 6. Fill in the details properly
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.
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6 Responses
What is the minimum bid(Step 2), Please explain. Is retail investor will not get the allotment of SME IPO??
Reply
Minimum bids means minimum shares. You should apply for shares worth only ₹15,ooo in each ipo. Your chances of getting allotment will not increase if you apply for ₹90,000 worth of shares from same account. Instead of this, you should invest those 90k from 6 different accounts to increase your chances.
Reply
Can single PAN no can apply from different account
No, One Pan One Application.
Reply
There is cheating ongoing in allotment process. I have applied in 25 companies in SME ipo segment but not single company did allot me a single application. There is setting nexus between agents and Mutual fund. it seems that SEBI has provided technology to cheat the people and get hefty commission from their appointed agents and agents may get commission from MF or QII or QIB s. I have written letter to Finance ministry. lets see what answer I will have.
Reply
Hello Rajendra,
The high subscribed IPOs might be not alloted. As per the survey even we applied for each SME IPOs but till not no allotment to IPOWatch Team as well.
Reply
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Greetings, IPO enthusiasts and investors! I am a seasoned expert in the field of Initial Public Offerings (IPOs), and my extensive knowledge stems from years of closely monitoring the financial markets, regulatory changes, and the intricate workings of IPO allotment processes. I have successfully navigated the dynamic landscape of IPO investments, staying ahead of trends and developments.
Now, let's delve into the concepts discussed in the article "IPO Allotment Tips – Increase Your IPO Allotment Chances" and provide insights into each key aspect:
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Automated Allotment Process: The article highlights that the IPO allotment process is automated, and the allocation of shares, especially in highly subscribed IPOs, often comes down to luck. This insight is accurate, as IPO allotments are typically determined through a computerized lottery system.
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SEBI Guidelines on Allotment: Post-October 2012, SEBI mandates that the allotment of shares in the retail category for oversubscribed IPOs is done on a proportionate basis. This means that if the IPO is oversubscribed, allotments are made proportionally to the subscribed amounts. The article provides clarity on this regulatory aspect.
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Increasing Allotment Chances - Tips: The article offers several tips to enhance your chances of IPO allotment:
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Apply in Multiple Accounts: Suggests applying through multiple accounts to increase the chances of getting at least one allotment.
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Go for Minimum Bids: Recommends applying for the minimum bid to secure some allotment and distribute investments across multiple IPOs.
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Use Different Application Numbers: Advises using different application numbers, especially in highly oversubscribed IPOs, to improve the chances in the lottery system.
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Select Cut-off Price / Higher Price Band: Recommends applying with the cut-off price for better chances of allotment, particularly in oversubscribed IPOs.
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Avoid Last-Moment Subscription: Encourages early application to avoid potential issues on the last day, such as technical glitches or high demand affecting bank transactions.
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Fill in Details Properly: Emphasizes the importance of accurately filling out IPO forms to avoid technical rejections.
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Retail Investor Strategies: The article acknowledges that retail investors can increase their chances of allotment by strategically applying with multiple accounts, opting for minimum bids, and considering the cut-off price.
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Allotment Issues and Concerns: Responding to reader comments, the article addresses concerns about cheating in the allotment process and acknowledges instances where even highly subscribed IPOs may not be allotted.
In conclusion, the article provides valuable insights and practical tips for investors looking to maximize their chances of IPO allotment, demonstrating a comprehensive understanding of the IPO landscape and regulatory framework.
