Most of the recent IPOs have offered very attractive listing return. It is becoming harder for retail investors to get allotments, whether you are a newbie or an experienced one, missing allotment in IPOs left investors confused, clueless and with various questions……
- How to get confirmed IPO Allotment?
- Why I am not getting IPO Allotment ?
- What wrong I am doing while applying IPO?
Here, we are sharing some smart tricks to increase IPO allotment chances significantly.
Tips & Tricks to Increase IPO allotment chances
1. Apply with Multiple members Accounts
When you apply through more than one account, your chances of allotment increases. If you apply IPO with five Demat Account with different PAN, then Probability of successful allotment increases to five times, in comparison to if you make one application of five lots. Do remember that “One PAN per One Application is allowed”. So ensure that not multiple applications submitted for an IPO using the same PAN number.
2. Fill IPO form correctly
While applying for IPO make sure that form is filled correctly, do cross check/recheck your Demat account and other details in application. Ensure that there are no errors in the application such as PAN number of the applicant, Demat account number, Bid quantity and Bid price etc. This is one of the most common reasons for non-allotment of IPO is entering incomplete or incorrect details. Though filling form online is quite simple and less chance of mistakes then applying through the physical application. Form should be filled accurately to avoid rejection of IPO application.
3. Apply at Upper Price Band
When the IPO is getting oversubscribed always remember to apply at Upper price band only or opt for the cut-off price so that your application doesn’t get rejected due to lower bid price than the issue price. For example Burger King IPO Price band was Rs. 58 – 60 /- per share. This IPO was oversubscribed and if investor has applied at Rs. 58 or Rs. 59 he will not get any allotment, only investors applied with cut off/Rs. 60 (Upper Price Band) will have high chances of getting allotment.
4. Don’t delay in applying
If you plan on applying for the IPO allotment, do it in the initial days and do not wait till the end. It may be a good way to figure out how an IPO is perceived but it’s not the most efficient. You may lose out on a any good IPO by just waiting till last minute.
Hopefully, these tips will help every investor to act little cautious and get benefitted.
