The IPO season is back. Several new-age businesses are looking to raise money from the public to expand their businesses. 87% of the IPOs that came in 2024 are trading above their listing price which is why many retail investors look at IPO investments very positively.

However, receiving an IPO allotment is not at all easy. The IPO allotment technique is similar to a lottery, where chance is a big factor. A lot of times, you may end up not receiving any allotment and ultimately lose out on huge listing day gains.

Get ready to invest: Apply in the best Upcoming IPOs now!

In this article, let's explore strategies to boost your chances of getting IPO allotments in oversubscribed issues. By following these tips, you'll gain insight into the complexities of IPO applications and improve your investment opportunities.

Apply for a Single Lot

To improve your odds of getting an IPO allotment, it’s wise to avoid placing large bids, especially in oversubscribed offerings. Instead, spread your investment across multiple smaller applications.

SEBI treats all retail applications equally up to Rs 2 Lacs and by diversifying your bids, you increase the likelihood that one of your applications may be successful.

Use a Multiple-Account Approach

You can improve your chances of getting an allotment by submitting applications through different accounts. You can apply for an IPO through your family member's demat account as well.

By pooling resources and applying through several family accounts, you can increase the odds of receiving at least one allocation. This approach distributes risk and increases the likelihood of securing shares across multiple family members.

Consider Investing with Lesser-Known Brokers

Don’t overlook smaller or lesser-known brokerage firms when applying for IPOs. These brokers face less competition for allocations compared to larger, more well-known ones.

Conduct thorough research to find smaller brokers who offer unique opportunities to secure IPO shares. Once you find that the broker is reliable enough, go ahead and apply for a single lot.

However, the catch is that all the Demat accounts should have a different PAN number. If the PAN number is the same across different IPO applications, you won’t get an allotment even on a single application. In such cases, it’s advisable to use your HUF or your business’s PAN number.

  Open Multiple Brokerage Accounts

Just as you would find new smaller brokers, you could also consider opening demat accounts with many brokerage houses. This will increase your exposure by opening multiple accounts with different brokerage firms.

Since each broker may receive IPO allocations independently, this strategy gives you access to more opportunities for allotment. By this, you are not relying solely on one single broker, you increase your chances of success in obtaining shares from various IPOs.

Once again, make sure to apply through different PAN numbers.

Maximise IPO Opportunities

Stay informed about upcoming IPOs and be proactive in applying for them. Participating in several IPOs not only broadens your portfolio but also increases your likelihood of securing allotments.

This strategy requires you to be alert and act swiftly when new IPO opportunities arise.

Buy Parent Company Shares

If the company preparing for an IPO has a parent company, you can purchase shares of the parent firm beforehand. In some cases, owning even a small amount of parent company shares, such as a single share, can increase your chances of securing an IPO allocation when the process begins.

Stay Persistent in the IPO Process

Persistence is key in the IPO market. Even if your early attempts don't result in success, continue applying consistently. Over time, your understanding of the IPO process and market trends will grow and improve your chances of getting an allotment.

This consistent approach helps you refine your strategy and leverage past experiences for future success.

Conclusion

To improve your chances of getting an IPO allotment, use smart strategies and stay persistent. Apply through multiple accounts and keep yourself informed about upcoming IPOs.

Bidding at the cut-off price helps you align with the final offering, especially in oversubscribed IPOs. Apply early, and make sure to fill out the application correctly to avoid rejection. Getting family members involved can also increase your chances. Be patient and keep adjusting your approach as the market changes.

By following these tips, you can overcome IPO challenges and increase your chances of making profitable investments. Each application helps you grow your investment portfolio and work toward your financial goals.

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