IPO
Due to the sudden increase in the number of investors investing in IPO, many investors are not getting IPO allotment. Many investors complain that they are tired of investing money but they have not yet received IPO allotment of any good company. If you are also among those investors who are disappointed due to not getting IPO allotment, then we are giving you some tips. If you follow them, then your chances of IPO allotment will increase. Let us know how you can increase your chances of IPO allotment.
Apply with more than one Demat account
Market experts say that if you want to increase your chances of IPO allotment, then apply from different demat accounts. However, remember that these demat accounts should not be linked to the same PAN. If this happens, there will be no benefit. You should apply from the demat account linked to the PAN of your wife, child. By doing this, the chances of allotment will increase. Applying through multiple PAN-linked demat accounts is a popular strategy. Instead of applying for the entire amount through one account, splitting it into multiple accounts increases your chances of getting more “allotment”. Just make sure that each account is linked to a new PAN, as multiple applications under the same PAN will be rejected.
Understand this with an example-
Suppose you have ₹100000. You are planning to apply in an IPO.
Option 1: Apply for ₹100000 from a single Demat account. Option 2: Apply for ₹100000 from 4 or 5 Demat accounts.
Experts say option 2 would be better as applying through multiple PAN-linked demat accounts will increase your chances of getting an allotment. Some investors also use family or friends’ demat accounts for this purpose.
Shareholder quota is also a method—
Another surefire way to get an IPO of a good company is through shareholder quotas. If you hold shares in the IPO’s mother company, you may be eligible for a reserved allotment. For instance, the Bajaj Housing IPO had set aside 7.62% for shareholders of Bajaj Finserv and Bajaj Finance. Similarly, electric vehicle startup Ather, which is preparing for its IPO, has reserved a portion for shareholders of Hero MotoCorp—one of its key promoters—following the successful listing of its larger EV rival Ola Electric.
The maximum amount one can apply for in an IPO is Rs 2 lakh in the shareholder category, even if you apply from another category. Interestingly, the IPO of Life Insurance Corporation of India (LIC) also included a quota for policyholders.
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