123ArticleOnline Logo
Welcome to 123ArticleOnline.com!
ALL >> Investing---Finance >> View Article

Here Is How To Increase The Chances Of Ipo Allotment

Profile Picture
By Author: harish
Total Articles: 3
Comment this article
Facebook ShareTwitter ShareGoogle+ ShareTwitter Share

Initial Public Offering is a form of the public offering. It involves a process wherein company shares are sold to retail and institutional investors. This type of investment garners significant returns. It helps investors with long-term investment goals. Hence, it has become relatively popular these days. First-time IPO investors usually face allotment issues. Even after multiple applications, they fail to bag in even one.
Although luck plays a factor in this, it also boils down to certain other aspects. Here are some tips that help you increase your chances of IPO allotment:

Apply via multiple Demat Accounts

If you want a successful IPO allotment, it is wise to apply through multiple accounts. This is highly effective than applying for various IPO lots from the same Demat Account. Many investors use this common trick to boost their IPO allotment likelihood. But before you do so, remember a few things. For example, use different PAN numbers for each Account. Open them under the family members’ names.

Avoid ...
... multiple applications

Applying for multiple IPO lots is not necessarily profitable. At times, it negatively impacts your IPO allotment status. Instead, you should opt for a single lot application, especially if you want to invest in small-sized IPOs. Go for multiple slots only when dealing with an unsubscribed or big IPO. Also, assess your risk capacity while doing so.

Fill your details carefully

Sometimes, IPO forms get disapproved due to minor discrepancies. It could be a mistake in your PAN number. Or perhaps, even a spelling error of your name. Hence, it is best to avoid such blunders. Before you hit submit, check for spelling mistakes and typos. Cross-check your details while filling out the form. The last thing you want is silly mistakes to affect your IPO status.

Bid at cut-off prices

Always choose a cut-off price that indicates that you pay the highest price in the price band when the shares are allotted. If you want to invest in an undersubscribed IPO, select the cut-off price only after thorough research. IPO forms with a bid for low bands are often rejected. Hence, considering this tip is a must to garner desired outcomes.

Check your allotment status frequently

Stay systematic and check IPO Allotment status regularly. Although it does not enhance your chances of securing a position, it clarifies the probability of the same. It helps you stay updated.

Purchase parent or holding company shares

When dealing with a subsidiary, consider buying the shares of its parent company first. You can invest as little as a single share of the parent company before the allotment process begins. After that, you could apply for the IPO of its subsidiary via the shareholder’s category.
This is an excellent strategy followed by many seasoned investors. It improves the chances of your IPO allotment considerably.

Total Views: 41Word Count: 455See All articles From Author

Add Comment

Investing / Finance Articles

1. What Is A Term Loan? - Comprehensive Guide To Term Loans
Author: ravi ranjan

2. Same Day Loans Online: A Good Cash Deal Without Any Sleep Loss
Author: Sarah Ferguson is a financial adviser of payday

3. Ataya Construction Products In Egypyt
Author: ataya team

4. The Role Of Unsecured Business Loans In The Growth Of Business
Author: Biz Advance Now

5. All About Usda Home Loans Alaska And Idaho For First Time Home Buyer
Author: vikram kumar

6. Apply For Usda Home Loan If You're A First Time Home Buyer
Author: vikram kumar

7. Unsecured Loans Vs. Secured Loans- Factors That Help You Make The Right Choice!
Author: Anil Sinhanni

8. Quick Personal Loan In India - Offeringfinserve
Author: offring services

9. Tips For First-time Home Buyers No Down Payment Loans:
Author: vikram kumar

10. Things To Know About Usda Home Loans For First-time Home Buyer
Author: vikram kumar

11. Approach Usda Lenders As Your Assisting Hands To Obtain A Secure Residence With A Usda Rural Housing Loan
Author: vikram kumar

12. Prepare A Budget And Then Own A Home: Usda Makes It As Easy As It Sounds
Author: vikram kumar

13. Buy A Property, Make A Home: Home Help For The Rural Residents
Author: vikram kumar

14. Planning To Buy A Property First Time You Can Call Home? Know About Usda Home Loan Programs
Author: vikram kumar

15. Home Loans In Hyderabad
Author: Pooja Jain

Login To Account
Login Email:
Forgot Password?
New User?
Sign Up Newsletter
Email Address: