How You Can Increase Your IPO Allotment Chances - IPO Allotment Tips
When we see any IPO with 30-40 % premium the common statement is 'I haven't got any of share in-spite of multiple applications', “I have not been allotted any shares”, “I haven’t got allotment in multiple applications”, “why i am not getting allotment in last five IPO”.
An with this we end up in the situation and mindset that the IPO's are only for the luckiest person in the world and only lucky person get the allotment in high subscription IPOs'. Many times we have situation where for good IPOs in which even people who applied through just 1 application and get the allotment while some applies in multiple numbers but still not getting allotment.
This does not mean that the luckier person will get the shares and you may not ! but with the some of the tips and tricks we'll now going to change your this situation and you'll find yourself allotted shares in the IPOs' and that too in high subscribed ipo.
Below are It will surely help you to increase IPO allotment chances.
IPO Allotment Process:As per SEBI after October 2012 allotment of shares in retail category is on proportionate basis if the ipo over subscribed.
In the case of over subscription 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 lottery system. The same stock will be allotted to the higher subscribed amount. The basis of allotment for the all the applied bid will be the same. As per current guidelines there will be no allotment is less than the minimum bid lot size.
How to increase chances for IPO Allotment:There are 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 over subscribed IPOs.
Step 1. Apply from multiple account for the same ipoIt is always advisable not to apply with maximum bid in just 1 account but use the multiple accounts for the subscription of high subscribed ipo.
There is a little trick 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 account can give a more chances for the allotment. In IPOs which highly over subscribed and the good listing gain expect IPOs multiple accounts have more chances to have an allotment.
Step 2. Always Minimum Bids Only, No big applicationsIf you are retail investor; then you'll get the minimum shares allotment in all the bid from minimum to maximum, as per the SEBI rules the retail investors will get We recommend that go for minimum bid only. For the over subscribed 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 numbersTo get the shares, follow this little trick. While applying IPOs which are going to have a huge subscription in retail one should apply with different application numbers. Do not apply in a with numbers which are in one row other wise you might not get the stock.
eg. 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. Bid price should be always cut off price / higher price bandNever bid for the IPO which is highly subscribed and you have to choose the cut off price / higher price band. As those who apply with the higher price band aka cut off price will get a maximum chance of the allotment. Using this little trick will increase your chances of allotment in IPOs in which you want to get the allotment in case of over subscription.
Step 5. Plan Well Before, No last moment subscriptionIf you have a mind set that you are going to apply for the IPO then go for it on the very first day or on the second day. If you are going to apply it on the last day but it might cause few issues like your bank account is not responding due to HNI and QIB high subscription. It is to take care that you do not miss the good IPOs.
Step 6. No Typos please, fill the details correctlyDo not hurry in filling the IPO forms. One should fill the details correctly like the amount, name, dp id, bank details and more. Try to fill online form instead of the paper application as it will surely avoid technical rejection. Most of the 3-in-1 service providers even do not ask for the personal details and take your details from your account details, this is safest way to avoid technical error and rejection due to the same.
We've cover the tricks and tips for getting allotment for the oversubscribed IPO; but investing in the same should be come from the detailed research and one should always check the information about IPO like price band, company financial, grey market premium, kostak rates which will help you to predict the returns at the time of listing and long term.
Hope with these tips you'll get shares allotted in next high subscribed IPO.
Good Luck !