IPO Allotment Tips
Investing in Initial Public Offerings (IPOs) has become increasingly popular in India, especially with many companies offering strong listing gains. However, with oversubscription becoming the norm, getting an IPO allotment is not guaranteed. If you’re wondering how to increase your chances of IPO allotment, this FAQ guide covers the most effective IPO allotment tips for retail investors.
1. How is IPO allotment done?
IPO allotment in India is done as per SEBI guidelines. In the retail investor category, if an IPO is oversubscribed, allotment is done using a lottery system, where each applicant has an equal chance of getting one lot. It is completely computerized and unbiased.
2. What are the best tips to increase IPO allotment chances?
Here are some proven IPO allotment tips:
✅ Apply from multiple PAN accounts: You can increase your chances by applying from different PAN accounts (such as from family members), each with one lot.
✅ Avoid large bids in the retail category: Oversubscribed IPOs allocate only one lot per person. Bidding for more than one lot doesn’t improve your chances.
✅ Use ASBA via multiple banks: Apply using ASBA (Application Supported by Blocked Amount) through different bank accounts linked with separate PANs.
✅ Apply early: While timing isn’t guaranteed to increase chances, applying on Day 1 helps avoid technical issues during the last-minute rush.
3. Can I get IPO allotment using more than one Demat account?
You can’t apply for the same IPO multiple times using the same PAN, even if you use different Demat accounts. However, you can apply through multiple unique PANs, such as from your spouse, parents, or siblings, to improve your household’s overall chances.
4. Does applying at cut-off price increase allotment chances?
Yes. Retail investors should always select the “cut-off price” option. It ensures your application is considered at the final issue price decided by the company, improving your chance of valid allotment.
5. Does the number of lots increase my chances?
In oversubscribed IPOs, all retail applicants get only one lot if allotted, no matter how many they apply for. It is smarter to apply for one lot from multiple PAN accounts instead of placing a big order from one account.
6. Is there any advantage in using a specific broker or app?
No broker or trading app can guarantee IPO allotment. However, using a reliable app with easy ASBA integration (like Zerodha, Groww, Upstox, or your bank’s net banking) can help ensure your application is submitted without errors.
7. What if I don’t get allotment?
If you don’t get IPO allotment, the blocked amount will be automatically refunded to your bank account within a few days. You can check your allotment status on the registrar’s website (e.g., Link Intime, KFintech).
