Need to make sure your IPO allotments get selected? Here is what you need to do!
Have you ever allotted your money for an IPO but got disappointed when it wasn't selected? We understand the frustration. IPO's are attracting massive subscriptions, and this is one of the reasons allotments are getting scarce. If you had any of the following queries like, - Why is my IPO not allotted? Or, How to get my IPO confirmed, this is something you need to read.
How To Increase The Chances Of IPO Selection?
If you thought its mere luck and gamble, you could be more wrong! Understanding the logic behind allotments helps you double the chances of getting proper allocations.
No Benefits For Big Applications-
Any application lower than 200000 is treated equally. So if you think investing 60000 instead of 14000 will increase your chances of getting selected, it won't help you get a better position?
Apply With Multiple Demat Accounts-
Using multiple applications to invest instead of investing large in one is a better choice. Use Demat accounts linked to different PAN numbers of close and reliable family members. The probability of successful funds increases to five times when you make the allotments.
The Bid Price And Cut-Off Price-
Most investors are confused between the two terms. Cut-off means the investors are ready to pay whatever price the company decides at the end of the book-building process. The investors are required to pay the amount at the highest price band. The excess amount is refunded. The retail investor should place bids at their maximum price to increase the chance of allotments.
Check The Subscription Status-
The most crucial step in increasing IPO is increasing the chances. Before placing the bids, check the subscription levels on the 1st and 2nd days in retail, HNI and QIB. If the responses are good, then it's good to apply. If it is undersubscribed and has a significant issue, you can use it in large quantities.
Avoid Last Moment Rush-
Investors depend on subscription levels in HNI, QIB and retail categories before placing bids. If the response is good, they are placing bids on the last day. It is an intelligent way to invest but look out for the disaster of your bank blocking your account at the last minute!
Avoid Technical Rejections-
The IPO applications may be rejected on technical grounds without the investor knowing about the errors too. So make sure you fill in your details most carefully.
