How Increase Ipo Allotment Chances?
Investors in initial public offerings (IPOs) frequently ask questions like, “Why haven’t I been allotted any shares in this IPO?” , “Why haven’t I been allotted any shares despite submitting multiple applications?” and “How Increase Ipo Allotment Chances?”. Therefore, you can say that allotments in highly subscribed IPOs almost go to the lucky people. Because In some initial public offerings (IPOs), even applicants who submitted a single application receive an allocation, while others who submit multiple applications fail to receive one at all. This demonstrates that the procedure is automated and that the lucky recipient of the allocation.
We are here to share some concepts that could improve the possibility of IPO allocation.
Avoid big applications
In the SEBI allotment process, retail applications (those for less than Rs 200,000) are all treated equally. In the event of over-subscription, there is no point in submitting a large application. One should use multiple accounts to place minimum bids on oversubscribed IPOs. This will make it easier to invest any extra funds in several IPOs.
Bid at cut off price / higher price band
The difference between the bid price and cut-off price frequently confuses investors. “Cut-off price” denotes an investor’s readiness to pay whatever sum the business determines at the end of the book-building process. The investor must place a bid in the highest price band after submitting the application at Cut Off. If the price is lower than what was paid, the excess is reimbursed.
Avoid last moment subscription
Go for it on the first or second day if you have already decided that you will apply for the IPO. If an investor applies on the last day, there may be a few problems, such as a bank account that is not responding because of heavy HNI and QIB subscription, or other technical difficulties. Making sure the investor doesn’t miss out on the opportunity to invest in the IPO is important.
Apply via more than one account for the same Ipo
Apply for the IPO using multiple accounts rather than one account with the highest bid. In order to apply for highly subscribed IPOs, one should use multiple IPO accounts. Using multiple accounts to apply can definitely increase your chances of getting an IPO allotment.
Fill the details properly
Take your time when filling out the IPO forms. The investor must accurately fill out all fields, including the amount, name, DP ID, bank information, etc. There are also printed forms available, so one should use those as well. Application for the IPO through ASBA is the safest way to go. One can apply for ASBA through their bank, but the investor must verify the information before doing so. Without a doubt, it will avoid technical rejection.
Buy parent or holding company shares
The methods will work for all IPOs, but this trick does not work for all IPOs. Although this advice is excellent wherever it applies. Investors are eligible to apply through the Shareholder Category if they have at least one share of the parent company in their Demat Account.
It only applies, though, when the parent company of the IPO company is already a publicly traded company and there is a reservation for shareholders in the parent company. It follows that the shareholder category has significantly higher chances of allocation. Additionally, bids maycan be made in the both shareholder and retail categories. As a result, this raises the likelihood of allocation.
Also Read – Upcoming Ipos In India
