10X Your IPO Allotment Chance, Following These Methods || By INVESMATE

We can see a continuous bullish trend in the recent Stock market; this is the time when most of the companies preferred involving themselves more in releasing their IPOs. Whereas with our INVESMATE daily Social media posts and telegram channel updates, we already alerted you about the forthcoming IPO news beforehand of the release, i.e., Idea Forge, Ikio Lighting Ltd., Cyient DLM Ltd., and Senco Gold Ltd., we are thrilled to share that these IPOs were easily managed to give an estimated return of 40% to 100% on the listing day itself, which was appreciated by many of our students and readers. But in the process, we have also noticed a very genuine problem that bothers many of the investors, and that is the low chance of getting IPO allotments in the lottery system.

Where INVESMATE is already expecting a good chance in the Grey Market Premium (GMP) for further IPO releases, we think this is the correct time to educate those investors who missed the chance of the previous IPO disbursement for some reasons.

With these types of IPO insurance, what we see most of the time is that an investor desires to apply with his/her several Demates accounts in the hope of getting more IPO Lots of the company. But in most cases, even after these many applications, the investor can’t manage to get an IPO lot. That is because we, the retail investors, unknowingly make some mistakes while applying for an IPO, which, as a result, decreases our chance of getting it.

Here are some sure yet simple steps that we hope will help you the next time you wish to enroll in an IPO. 👇

But before that, let us understand exactly what an IPO is. 

An IPO is a process in which a company declares itself a public company by offering its shares to the general public (the citizens of a country) for the first time, after which it enlists its shares on the stock exchange.

Here, many of us think that getting an IPO is all about luck since the whole process is conducted through a lottery system. In this case, if you follow a certain procedure discussed in this blog, you can greatly increase your chances of getting an IPO without any extra effort.

Let’s Dive Deep

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Avoid Applying Large Amounts

As we know, the system of the Securities and Exchange Board of India (SEBI) is similar for all retail investors (capital less than 200,000); therefore, even if you submit a substantial application of 1 lakh, you may not be considered for oversubscription, as we know that if an IPO is oversubscribed, then at least one lot is allotted to each applicant who applied for it first. So we don’t see a suitable point for applying more than one lot, because no matter If you get selected in the lottery system, you will only be eligible for that one lot—not more than that. But suppose an IPO size is very large and the retail section may not be oversubscribed easily, then you can apply for more lots, and if they are available, you will definitely get the lot you applied for.

Applying multiple times with different demat accounts

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Another wrong notion about IPO application is that if we apply from different demat accounts, then our chances of getting the IPO increase, which is completely wrong information because, in the lottery system through which the whole process gets conducted, and here

one PAN number is treated as one lottery. 

Pro TIP: So in this case, you can open several demat accounts in the names of others in your family and apply for it. If you apply with separate PAN numbers, the chances of getting an IPO will increase. 

Bid at a Cut-Off Price

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While applying for an IPO, it is always advisable to apply at the cut-off price because if you specify a certain price but, by chance, the IPO gets allotted at a price higher than that, then obviously you will lose here. On the other hand, if you bid at the cut-off price, then you will get the allotment at the same price as the IPO.

Earlier is Better. Don’t Wait for the Last Moment

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Always apply on the first or second day of the IPO opening instead of waiting till the last moment because there might be a lot of traffic on the last day and also a high chance of technical errors related to the bank account or broker, and because of this, Maybe your application didn’t punch on time. So if you have decided that you will apply for the very IPO, then it is always better to do it in its initial days.

Must Avoid Mistakes While Applying For an IPO

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  • While filling out the IPO application form, you have to be careful with the bid amount or bid price because the wrong information may cause your IPO application to be rejected.
  • Also, while filling in the bank details, ensure you are giving the correct information. Also, recheck the other information, like name, amount, DP ID etc

Approve the Bank Mandate Request

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Sometimes we forget to accept the payment request from the bank. Don’t forget to accept it; otherwise, your application will not be considered complete.

Hold the Shares of the Parent Company

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This is another hack that can be beneficial for your IPO investment opportunity: holding at least a share of the parent company. In that case, you can easily apply under the shareholder category. But remember, not all IPOs employ this strategy. 

Whereas this can be a simple way to increase your chances of getting an IPO through shareholder quota, if the listed company wants to list its internal company separately, then there will be a separate quota for the shareholders of the parent company, from which they can avail the opportunity very easily as the competition is very low there.

So if you want, you can apply for the shareholder quota of that company by buying it on the stock market.

Hope the ideas listed in this blog will help you increase your chance of getting the IPO allotment in the future. As we already told you, with the recent update and market conditions, INVESMATE is expecting a lot more IPO enrollees in the coming months. To stay updated and get all these IPO release updates before time, you can follow us on our social handles<. Also, you can share with us which IPO you are going to apply for next in the comment section.

Arunava Chatterjee
Founder of INVESMATE. I am a Certified Research Analyst, Value & Growth Investor, Trainer and Tech Entrepreneur. With 15 years of capital market experience, I have trained 10000+ students on INVESMATE. I have created several YouTube videos, mostly related to in-depth fundamental analysis.


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