IPO Market / If you too do not get IPO allotment, then follow this trick, it will work.

IPO Market: Do you invest in IPOs but repeatedly get frustrated by not getting a share allotment? Many people consider it a matter of luck, but the truth is that with some smart practices, you can significantly increase your chances of getting a share allotment. Let's explore five game-changing methods that can make your IPO investment smarter.

1. Hold Parent Company Shares, Get Shareholder Quota

If the parent company of the IPO company is already listed on the stock market, hold some of its shares in your demat account. Even just one share entitles you to apply in the shareholder category. The chances of allotment in this category are higher than for retail investors. This is a simple yet effective method that most people overlook.

2. Bid at the top of the price band

The company sets a price band for the IPO. Always apply at the upper end of the price band instead of bidding at the lowest price. A higher bid gives your application priority, increasing the chances of share allotment. This small step strengthens the value of your application.

3. Apply from different demat accounts within your family

According to SEBI regulations, retail investors investing up to ₹2 lakh are considered equal. This means that applying for a larger amount from a single account offers no additional benefit. Instead, apply for the minimum lot size from the demat accounts of different family members. Applications from each account are considered separate, which significantly increases your chances of getting shares.

4. Apply on the first day itself

Many investors bid on the last day of an IPO, which can be risky. Technical glitches, server issues, or banking delays could cause your application to be stuck. Therefore, apply as early as possible, on the first or second day of the IPO's opening. Applying early ensures timely processing of your application and reduces the risk of rejection.

5. Use ASBA and fill in the correct details

Use ASBA (Application Supported by Blocked Amount) when applying for an IPO. This feature is available on both bank and brokerage platforms. ASBA blocks funds in your bank account, reducing the likelihood of application rejection. Also, enter your PAN number, demat, and bank details correctly. Maintain a sufficient balance in your bank account, as minor errors, such as an incorrect PAN number or insufficient balance, can lead to your application being rejected.