What are tips and tricks to get an IPO allotment?

Popular IPOs are often heavily oversubscribed, and allotment in the Retail category usually happens through a lottery system. While allotment is never guaranteed, the following tips may help improve your chances, if applied correctly and legally.

1) Multiple Accounts: Use multiple accounts (Family members, friends, etc.) with different PAN Numbers for IPO application. From each Demat account, apply for 1 Lot of IPO only. As, lottery system from IPO allotment considers 1 Lot of IPO for a Single PAN Number. If Number of application are equal or higher than Retail total subscription, then there is very high probability that, we can get at least one allotment.

2) One Lot one Account: Apply for Single Lot from Single demat account. Though retail investors can apply for multiple lots with total value up to 2,00,000 rs; during oversubscription, only one lot per PAN number is considered for Lottery allotment. Instead use extra fund for applying though other person Demat account.

3) Cut-off Price: While applying IPO, always consider Cut-off price option. As most good IPOs are oversubscribed and final IPO price is set at highest price of price range. If IPOs are applied at lower price, application will get rejected.

4) Shareholder/Employee Quota: Check if the company has a quota for existing shareholders or employees. If you own shares of the parent company (before the record date), you may be eligible to apply under the shareholder category, which often has a higher chance of allotment. So from Single Demat account, 2 applications can be done for IPO (1 Regular + 1 Shareholder/employees Quota).

5) Accuracy: To avoid IPO rejections, ensure accurate details to application submitted. Prefer Broker apps / website for UPI Application as most details come prefilled. Error chances in application get low.

6) Early Bird: Apply early to IPO. Avoid last minute rush, as due to technical glitches, UPI payment failures, etc. can led to IPO rejection.