Putting money into Initial Public Offerings (IPOs) is one exciting approach to potentially boost your returns on the stock market.But obtaining an IPO allotment is not so simple, and many investors want to know how to improve their chances of acquiring an IPO allotment.This method is comparable to lotteries, where chance is frequently a component. Your chances of success in this cutthroat market can be significantly increased by learning how to increase your chances of receiving an IPO allotment.We’ll discuss top 5 strategies for improving your chances of getting an allotment in an oversubscribed offering during this post. You can maximize your investment opportunities and have a better understanding of the complexities of IPO applications by implementing these tips for increasing IPO allotment chances.
Top 5 strategies to ensure your ipo allotment
To optimize your chances of being allocated to an IPO, it is imperative that you adopt a strategic approach that makes the most of your opportunities.Take into account the following strategies to improve your chances of acquiring shares in popular IPOs.Steer clear of submitting bulk applications over ₹ 2,00,000, as SEBI treats all retail applications equally up to this threshold.
It can be wiser to use different accounts to distribute your funds among multiple smaller bids in oversubscribed initial public offerings.This method spreads your risk by allowing you to participate in multiple IPOs concurrently, diversifying your chances even furtherSecond, think about involving close friends or family members in the application procedure.Using multiple accounts connected to different PAN cards to apply will boost your chances of receiving at least one IPO allotment.
Because each program runs on its own, you have more possibilities overall without breaking any SEBI restrictions.Third, during the IPO application process, place a bid at the cut-off price. This means that after the book-building process, you are willing to accept the final price that the firm sets.Indicating your dedication by placing a bid at the cut-off price raises your chances of being accepted into IPOs that are in high demand.
Top best tips to ensure your ipo allotment
Here are the top best tips to ensure your ipo allotment;
- Pursue IPO Success with Ingenuity and Persistence: Steer clear of placing large bids, particularly in oversubscribed IPOs, to increase your chances of being allotted.It may be advantageous to divide your investment among several smaller bids, since SEBI treats all retail applications equally up to ₹2,00,000.You can increase the likelihood of at least one successful allocation by using this strategy to diversify your applications.You lessen the chance of losing out owing to oversubscription by spreading your investment over several applications.
- Take a Democratic Lottery Approach: Applying for an IPO with multiple accounts will improve your odds.This can be achieved by urging close friends or family members to use their own demat accounts to apply for the same IPO.Your chances of being allocated are greatly increased by the fact that each application stands alone.By utilizing the compounding effect of multiple applications, this strategy increases your overall odds of success.
- Open Accounts with Multiple Brokers: By opening accounts with various brokerage houses, you can diversify your IPO applications. The number of IPOs from which a broker may receive allocations increases your exposure to potential allotments.By ensuring that you are not reliant on the allocation capacity of a single broker, this clever approach raises your chances of obtaining shares in an initial public offering (IPO).
- Make the Most of Family Participation: Persuade your loved ones to submit IPO applications alongside you. Your chances of receiving at least one allocation are greatly increased if you pool money and apply through multiple family accounts.This cooperative approach increases the chance that family members may obtain IPO shares while distributing risk.
- Investigate Lesser-Known Brokerages: Don’t overlook smaller or less well-known brokerage companies when submitting an IPO application.These companies might have less competition than bigger, more well-known brokers for allotments. Find hidden gem brokers who might offer special opportunities to purchase IPO shares by conducting in-depth research. In competitive IPO situations, diversifying your application sources increases the likelihood of a successful allotment.
- Remain Knowledgeable and Critical: Follow market trends and upcoming initial public offerings. Investigate companies thoroughly before applying, taking particular note of their financial stability and market potential.You’ll be able to make better decisions and increase your chances of getting successful allotments by using this proactive approach.
- Track IPO Subscription numbers: Keep tabs on IPO subscription numbers, especially for different investor categories including retail, HNI, and QIB.You can design your application strategy and boost your chances of allocation by having a thorough understanding of demand patterns.
FAQs
Is IPO allotment based on luck?
Ans. No ipo allotment is not based on luck, follow above strategies to ensure your ipo allotment.
Will l get my money back if my IPO is
not allotted?
Ans. Yes, you will get your money back.
