📋 Table of Contents
- Apply for One Lot in the Retail Category
- Use Multiple Demat Accounts with Different PANs
- Always Bid at the Cut-Off Price
- Avoid Last-Minute Applications
- Double-Check Your Application for Errors
- Approve the UPI Mandate Request
- Apply Under the Shareholder Quota
- Common Reasons for IPO Non-Allotment
- FAQs
- Final Thoughts
🧠 Introduction
Participating in an How to increase your chances of ipo Allotment IPO (Initial Public Offering) is one of the most exciting ways to enter the stock market. However, if you've applied for several IPOs and haven’t received any allotment yet, you're not alone. In popular IPOs, shares are often oversubscribed, especially in the retail category, making it difficult to get allotted.
In this guide, we’ll explain why you may not be getting an allotment and share smart strategies to boost your chances of getting IPO shares.
✅ Apply for Only One Lot in Retail Category
Contrary to popular belief, applying for multiple lots does NOT improve your chances in a highly subscribed IPO. In case of oversubscription, allotment is done via a computerized lottery system where every valid retail application has equal chances, regardless of how many lots are applied for.
Example:
- IPO Retail Quota: 3,000 shares
- Lot Size: 25 shares (1 lot)
- Total Retail Applicants: 150
- Allotment will go to 120 applicants (3,000 ÷ 25)
Whether you applied for 1 lot or 10 lots, only 1 lot will be allotted if selected in the lottery.
📝 Tip: Apply for just 1 lot to avoid capital lock-in and improve efficiency.
📊 Use Multiple Demat Accounts with Different PANs
You can’t apply multiple times using the same PAN number, as SEBI allows only one application per PAN.
But you can legally apply through family members’ or friends’ demat accounts, each with unique PANs. More valid applications mean a higher probability of winning the allotment lottery.
💡 Pro Tip: Use the names of your spouse, parents, or adult children to apply from multiple accounts.
💸 Always Bid at the Cut-Off Price
In book-building IPOs, the price is offered within a range (e.g., ₹60–₹65). You should always select the cut-off price option while bidding, which ensures that your application will be considered regardless of the final issue price.
If you bid below the final price (say ₹62 when the cut-off is ₹65), your application will be rejected.
✅ Best Practice: Always tick the “Cut-off price” box in the IPO application form.
⏳ Avoid Last-Minute Applications
Many investors wait until the last day to apply, but this can lead to:
- Bank server errors
- UPI payment failures
- Missed the cut-off time (usually 4:00 or 5:00 PM)
Apply early to avoid these technical glitches and ensure smooth processing.
🧾 Double-Check Your Application for Errors
A small mistake can cost you the allotment. Common errors include:
- Wrong Demat Account number
- Incorrect UPI ID
- Incomplete PAN details
- Choosing the wrong investor category
🔍 Tip: Review all details carefully before submission.
✅ Approve the UPI Mandate Request
If you're applying via UPI, you'll receive a mandate request on your mobile app to block the IPO amount.
If you forget to approve this before 5:00 PM on the last day, your application becomes invalid.
⚠️ Reminder: Check your UPI app and ensure the payment block is approved immediately after applying.
👨👩👧 Apply Under the Shareholder Quota (If Available)
Some IPOs reserve shares for existing shareholders of the parent company.
If you own shares of the parent company, you can apply under both:
- The Shareholder Category
- The Retail/HNI Category
This dual-application option increases your chance of allotment.
📈 Example: Holding shares of Tata Group may make you eligible for IPOs of its subsidiaries.
🚫 Common Reasons for IPO Non-Allotment
Even if you apply correctly, these factors can reduce your chances:
1. 📈 Massive Oversubscription
Top IPOs like Latent View Analytics (326x) or Paras Defence (304x) had extremely high subscription rates. When the demand far exceeds the supply, most applicants simply don't get allotted due to limited slots.
2. ❌ Incomplete or Incorrect Application
Mistakes like an invalid demat account, UPI errors, or wrong category selection often result in application rejection.
3. 🕓 Last-Minute Bidding Failure
Bidding at the last minute increases the risk of technical failures, like server downtime or payment timeouts.
4. 🔻 Bidding Below Issue Price
If you don’t select the cut-off price, and the final issue price is higher than your bid, your application is automatically excluded.
5. 🧾 UPI Mandate Not Approved
If the mandate is not approved on time, the application becomes ineligible, regardless of how early you applied.
🏁 Final Thoughts
While there is no guaranteed way to get IPO allotment in an oversubscribed offering, these smart strategies can significantly improve your chances.
Remember: patience, careful planning, and attention to detail matter just as much as luck.
🔍 Frequently Asked Questions (FAQs)
Q: Can I apply for IPO from multiple accounts using the same PAN?
A: No. Only one application per PAN is allowed. Multiple applications will be rejected.
Q: Does applying for more lots increase my chances?
A: No. In oversubscribed IPOs, every applicant can get only one lot if selected.
Q: What happens if I miss the UPI mandate approval?
A: Your application becomes invalid and won’t be considered for allotment.
