LG Electronics’ IPO came, Groww’s IPO came… Apart from this, many other companies applied for IPO, but not even one came out, this is the complaint of most of the retail investors. Their complaint increases when there is a bumper listing of the application in which they had applied, but they remained empty handed in the allotment.
In fact, in the last few years, retail investors IPO Participation has increased rapidly. People are placing bets in IPO after seeing each other. In such a situation, if an acquaintance gets shares allotted in IPO, then the question arises in the mind that how to apply so that we too get allotted shares.
At the same time, a question arises in the mind whether there is any irregularities in the allotment. Because some people always complain that they never get a good IPO. There is something wrong, but the reality is that if someone is getting it, then he is getting it as per the rules, and if someone is not getting it, then he also did not get the allotment as per the rules.
Today we will tell you some tricks, which increase the chances of allotment in IPO. You can strengthen your claim only by following some rules related to application.
1. Apply the very next day
If you have decided to apply for IPO, then definitely apply on the first day or second day, applying on the last day creates many problems. UPI ID is also used for IPO applications. There may be technical problems in UPI on the last day, and the payment may get stuck. Therefore, it is better to apply on the second day.
2. Apply in the names of different family members
If the IPO is oversubscribed then there is no benefit in applying more and more lots from one PAN card. In such a situation, the allotment of IPO is done through lucky draw, the registrar monitors this process. hence retail investmentA. You should bid from separate demat accounts in the name of your family members. So that it can be released in someone’s name.
When you apply for IPO from multiple accounts, the possibilities of share allotment increase. The application requires only a demat account, which is linked to a bank or UPI. Therefore, you should also open a demat account in the name of other family members and then apply in their name.
This process of allotment
In case of oversubscription, allotment is done in a special way. For example, if the IPO of M company is three times oversubscribed. That means, three times as many applications were received as the number of shares that were offered. In simple words, there were three claimants for one share. In such cases, allotment of IPO is done through computerized draw.
Let us explain to you the process of IPO Allotment in detail, the IPO of a good company is always oversubscribed, that is, applications from investors are many times more than the shares available in the IPO, then shares are not allotted to everyone.
But if the number of shares offered in the IPO were the same number of applications, all the investors would have been allotted shares in the IPO. When the IPO is oversubscribed then allotment becomes a bit complicated. In such a situation, there are some rules for the allotment process.
IPO oversubscribed simply means receiving more applications than the available shares. In such a situation, the retail investors to whom shares are allotted. Their number is calculated by dividing it by the number of equity shares available for allotment. That is, shares are allotted to investors on a proportionate basis only.
Retail investors who get allotment in IPO definitely get at least one lot. Therefore, there is an advantage of applying in different names.
What is IPO?
When a company offers its shares to the public for the first time, it is called IPO. Through IPO the company collects funds and spends those funds in the development of the company. In return, people who buy IPO get a stake in the company. The shares allotted in IPO are usually listed on stock exchanges like BSE or NSE. Where people can buy and sell these shares comfortably.
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