Are you eyeing the next big IPO but worried about why i never get IPO allotment? Fear not, as we unveil five savvy tricks to increase your chances of securing those coveted IPO shares.
Before diving into the tricks, it’s crucial to grasp the dynamics of an Initial Public Offering (IPO). Allotment is not guaranteed, especially if the IPO is exceedingly popular and oversubscribed.
Trick 1: Decode the IPO Range:
When an IPO is launched, observe the price range. For book building issues, like the popular 72-76 range example, remember that there’s a maximum gap of 20%. Understanding this range is the first step in strategic bidding.
Trick 2: Optimal Bidding Strategy:
Avoid the common mistake of bidding the floor price thinking it will guarantee a lower expense. In oversubscribed scenarios, allotments often happen at the cap or cut-off price. Always bid at the cap price or choose the cut-off option for a smarter move.
Trick 3: Don’t Wait Until the Last Day:
Timing is crucial in IPO investments. Waiting until the last day might result in missed opportunities due to technical glitches, app malfunctions, or server issues. Invest between the 1st and 3rd days, preferably on the 2nd, to avoid such pitfalls.
Trick 4: One PAN, One Application:
If you have multiple Demat accounts, don’t make the mistake of applying for the same IPO using different accounts with the same PAN card. It won’t increase your chances, and your requests may get canceled. Stick to one application per PAN card.
Trick 5: Leverage Family Members:
If you’re considering applying from multiple accounts, involve family members with different PAN cards. This increases your chances of allotment while adhering to the one PAN, one application rule.
Bonus Tip: Utilize Shareholder Quotas:
Take advantage of shareholder quotas if available. For instance, if a company like LIC is issuing an IPO, having shares in that company or being a policyholder may increase your chances in specific reserved categories.
By mastering these tricks, you can significantly enhance your probability of securing shares in an IPO. Whether it’s the next blockbuster IPO or a niche offering, strategic bidding and timely actions can make all the difference. Happy investing!
