It is possible that you applied for several IPOs but kept receiving the message "No Allotment." What specifically can be done to increase your odds, then? There are tactical techniques that can undoubtedly raise the possibility of an allocation, even though there is no sure-shot way to ensure one. Continue reading the blog post to know the suggestions to enhance your chances of securing upcoming IPO allotments.
With rising investor demand, allotments are getting tougher. Here are practical, proven tips to help you improve your chances of securing maximum allotment in upcoming IPOs without missing a beat.
If you are applying under the retail category (investment under ₹2 lakhs), you fall into the segment that is eligible for the lottery system. If you apply for more than ₹2 lakhs, your application falls into the HNI/NII category, where allotment is based on proportion, not a lottery. This significantly reduces the chances for small investors.
2. Use Multiple Demat Accounts
This is a tried-and-tested method. Applying through multiple Demat accounts increases your chances of hitting the lottery in at least one of them. However, you cannot use the same PAN number for multiple applications. So, apply using accounts of family members, ensuring each has a unique PAN.
3. Always Apply Through UPI and On Time
Most retail investors use the UPI-based application process via brokers or stock platforms. However, many miss out due to delayed UPI mandate approvals. Here is what you should do:
- Apply on the first or second day of the IPO opening.
- Immediately approve the UPI mandate once you get the notification.
- Ensure your UPI app is linked to your bank account with sufficient balance.
- Do not wait till the last day. Many applications fail or remain unapproved due to last-minute server overloads.
4. Avoid Technical Rejections
Thousands of applications get rejected due to simple mistakes that can be easily avoided. Always double-check the following:
- PAN is entered correctly.
- UPI ID is valid and active.
- Your name and details match the PAN and bank records exactly.
- Avoid using joint bank accounts for UPI applications.
- Make sure the bank account has enough balance, and UPI is active for IPO transactions.
5. Prefer High-Rated and Undersubscribed IPOs
Applying to upcoming IPOs that are not massively oversubscribed can actually improve your chances. Everyone runs after hyped IPOs like Zomato, LIC, or Nykaa, where the retail portion is oversubscribed 20–30 times.
Instead, look for quality IPOs with moderate demand, those with good fundamentals, positive analyst reviews, but not viral-level hype. These IPOs often offer better chances of allotment and decent listing gains.
6. Link The Correct Bank Account With The Demat
Many Demat providers now allow you to apply directly from your bank or app. However, the application can be cancelled if the linked bank account does not match the Demat holder's name or PAN. Always ensure that the Demat account and bank account are in the same name.
Also, using ASBA (Application Supported by Blocked Amount) through your bank's net banking (e.g., SBI, ICICI, HDFC) is a reliable alternative to UPI. The funds are simply blocked and not debited until allotment.
7. Do not Cancel Applications
Some investors apply and later cancel their applications based on subscription data. If you have done your research and the fundamentals are strong, it is better to stick to your application. Constantly cancelling IPO applications might not harm your chances directly, but you miss out on potential gains and waste your effort.
8. Monitor IPO Subscription Trends
You may get real-time insight into the responses of various categories (QIB, NII, and RII) by tracking subscription data during the IPO session. The likelihood of allotment increases if the retail segment is not oversubscribed by Day 2. This information is provided by websites such as BSE India and NSE India.
If you observe that the subscription is increasing gradually, you are likely at a sweet spot, where there is healthy interest but not too much demand.
Conclusion:
Technical accuracy and strategic preparation are all necessary to get an upcoming IPO allotment. You can increase your chances by applying early, using various PANs within your family, ensuring your application is error-free, and remaining consistent.
Having your Demat account and strategy in place and being IPO-ready gives you a distinct advantage as India's IPO market continues to grow.
FAQs
1. Can I increase my IPO allotment chances by applying for more lots in one application?
Every legitimate application has an equal chance in the lottery during an oversubscribed initial public offering (IPO), particularly in the retail sector. Your chances are not increased by applying for more lots. Applying for a single lot over several PANs is preferable.
2. Is it right to apply through multiple Demat accounts in a family?
Yes, every member of the family who has a distinct PAN and Demat account is eligible to file for an IPO. This is a smart and popular way to improve the possibilities of allocation.
3. What if I forget to approve the UPI mandate after applying for an IPO?
If you do not approve the UPI mandate within the time limit, your application will be invalid. Always approve the mandate promptly after applying.
4. How will I know if I got the IPO allotment?
You can check the status of the allotment on the registrar's website using your PAN, application number, or Demat ID. If allotted, you will also receive an email and SMS.
5. Is applying on the first day of the IPO better than waiting till the last day?
Yes, applying early helps you avoid last-minute technical issues and gives ample time to approve the UPI mandate. The allotment system does not prioritise based on when you apply, but early applications are safer.
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