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How to Increase IPO Allotment Chances?

Learn how to increase your chances of receiving shares in an IPO by carefully filling out forms and applying early. Find the tips below to Increase IPO Allotment Chances.

 

by Mathelene

Updated Mar 28, 2024

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How to Increase IPO Allotment Chances?

What is IPO Allotment?

Assigning shares to buyers who showed interest in purchasing them during an initial public offering is known as IPO allocation. Although companies set their own share offerings, there are instances in which demand exceeds supply. Fair distribution is ensured in such instances by the allocation.

It takes into account things like the total amount of money each investor wants to invest and whether or not they are retail or institutional investors. Equitable share allocation that takes investor preferences and the company's goals into account is the aim. Investors can find out how many shares they will receive by following the announcement of allotment results, which usually happens after the IPO subscription period concludes.

In allocating shares to investors who choose to follow the company's progress, this procedure guarantees transparency and equity.

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How to Increase IPO Allotment Chances?

Avoid Large application

In IPO do not make big applications. If too many people apply, you may not get many shares even if you put in a lot of money, like ₹1 lakh. It is good to use small amounts of money. In popular IPOs many people are applying so you can invest less money with various accounts.

So that you can invest your extra money on other IPOs. SEBI treats all the small applications equally, so a large amount of money with many applications does not give any advantages.

Use multiple demat accounts for applying

To increase your chances of receiving shares in an IPO, try to apply with multiple demat accounts. Do not invest all your money in one account instead of that you can spread your money among many accounts. This can be helpful when there is a high demand for the IPO.

You can only use one PAN number for all your applications, but still you can apply from various accounts. If your family and friends help you by applying through their accounts it will improve your chances also. Using many demat accounts can help to increase your chances of getting some shares in tha IPO.

Always choose the cut-off price to bid

It is best to always pick the cut-off price when bidding for an IPO. This means you are ready to pay the price which the company decides at the end. You have to bid at the highest price band when you choose the cut-off option. If the final price is lower, you will get a refund for the extra money. When filling out the IPO application form, it is a better option to select the cut-off choice.

Apply during the first two days

To increase your chances of getting shares in an IPO, apply within the first two days of its opening. Even if the IPO is only open for three days, you can apply early to increase your chance. So do not wait until the last day because it may cause technical issues.

Some investors are waiting to see how others react, so applying early may increase your chances to get shares. So try to complete your application within the first two days. 

Complete the details properly

To increase your chances in an IPO you have to give your details properly. When filling out the IPO papers, concentrate and take your time to verify that you submit all of the correct information, such as the amount, your name, DP ID, and bank information. The safest way to apply for the IPO is through ASBA, which you can access through your bank.

You have to check once before submitting your application. To increase your chances of success, fill out the IPO form carefully.

Disclaimer : The above information is for general informational purposes only. All information on the Site is provided in good faith, however we make no representation or warranty of any kind, express or implied, regarding the accuracy, adequacy, validity, reliability, availability or completeness of any information on the Site.

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