Boost IPO Allotment Success in 2025: Proven Strategies & Tips

The Indian IPO market is on fire! 🔥  

In 2024, 69 companies have so far raised ₹1.19 lakh crore ($14 billion) from mainboard initial public offerings (IPOs), breaking the previous record of ₹1.18 lakh crore set in 2021. 

This year, the total amount raised from initial public offerings (IPOs) has exceeded ₹1.19 lakh crore ($14 billion). In fact, currently India ranks second globally in the IPO fundraising this year, trailing only the US, which has raised $26.3 billion. China grabs the third place with $10.7 billion, according to Refinitiv data. 2024 saw some big bang IPOs including the recently closed Hyundai which raised ₹27,870 crore and Swiggy that raised ₹11,327 crore. 

These numbers highlight the growing momentum in the Indian IPO market.  

Let’s be honest – getting an IPO allotment can feel like winning the lottery! 🎟️  

​​Given the high demand, what steps can you take to improve your chances of receiving an IPO allotment? ✨ ​ 

Here are some tips to get the IPO allotment status! 

1. Apply via Multiple Demat Accounts 

Applying through multiple demat accounts, particularly those under different family members’ names, will increase your chances of being allocated to an IPO. Each demat account gets its own application entry, boosting your IPO allotment chances! 

In addition to ​​​​applying via family members’ demat accounts, you can further enhance your chances by submitting IPO applications through accounts set up for minors and under your Hindu Undivided Family (HUF) account. Both minors and HUFs can have separate demat accounts, and they are treated as distinct entities for IPO applications. 

If there are four members in your family owning a separate demat account, for example, and everyone applies for a lot, you quadruple your chances of hitting the jackpot. Just ensure every demat account has a unique PAN to avoid disqualification. 

2. Take the Shareholder Route 

Here’s a clever strategy: apply through the shareholder category of an IPO, which is often overlooked by many investors. Listed companies with subsidiaries planning to go public often reserve a portion of shares specifically for their current shareholders. Owning even a single share in the parent company gives you eligibility to apply under this shareholder quota​​​​. 

For example, owning a share in Tata Motors can help you apply for Tata Passengers EV IPO under the shareholder category. The beauty is that this segment is usually undersubscribed, increasing your chances of allotment compared to the retail category. 

Don’t worry—you don’t need a huge investment to take this route. Just one share qualifies you! So, during the application process, be sure to select “Existing Shareholder” under Investor Type, and get closer to snagging those prized IPO shares. 

3. Always Bid at the Cut-Off Price 

When applying for an ​​​​IPO, always bid at the cut-off price to maximize your chances of allotment. The cut-off price is the highest point within the IPO’s price range. For example, if the price band is ₹100-₹125, choosing ₹125 signals you’re willing to pay the top price if necessary. 

​​Let’s say the price band is ₹500 to ₹510. If you bid at ₹505, but the final price settles at ₹510, your application will be rejected. By choosing the cut-off, you avoid this risk and stay in the race! ​ 

4. ​​​​Apply for a Minimum Lot Size 📦 

When it comes to IPOs, applying for just one lot can be a smart move. But what exactly is a “lot”? Well, it’s the minimum number of shares you can apply for in a single application. The company issuing the IPO sets this number, and it can vary depending on the share price and the company’s rules. 

For instance, if one lot is 150 shares, you need to apply for at least 150 shares to get one lot. This standardises the process and ensures that shares are allocated in manageable chunks. 

Now, here’s a handy tip: applying for just one lot can actually boost your chances of getting an allotment, especially when the IPO is oversubscribed (which means more people want shares than there are shares available). 

5. Ensure No Errors in Your Application ✍️ 

A single mistake can disqualify your IPO application instantly! Be extra careful when entering your PAN, demat number, and bank account details. Errors, even minor ones, will result in rejection. 🚫 

Also, don’t forget to approve the mandate request as IPO applications are made through UPI. When you apply for an IPO, you’ll get a mandate request. Make sure to accept it through your banking app or website. If you don’t, you won’t be considered for the IPO allocation. 

6. Avoid Last-Minute Applications 🕒 

Procrastinating until the last day might cost you! ⏳ Servers can crash, payment portals can slow down, and you might miss out on submitting your IPO application. Apply early. 😱 Don’t wait until the final hours – apply early for peace of mind! 🌟 

To Sum Up! 

With these smart strategies, you can drastically improve your chances of scoring that elusive IPO allotment! 🎉 Whether you’re applying through multiple demat accounts, taking the shareholder route, or bidding at the cut-off price, every little edge counts. ✅ 

Add in error-free applications and early submissions, and you’re on your way to better odds of success in this buzzing IPO market. 📈✨ 

FAQs 

How does IPO allotment work? 

IPO allotment is primarily based on subscription levels. If an IPO is under-subscribed, all eligible applicants receive full allotment. For oversubscribed IPOs, shares are allocated either proportionately or through a lottery system, depending on investor categories. Categories like retail investors (typically 35%), High-Net-Worth Individuals (HNIs, 15%), and Qualified Institutional Buyers (QIBs, 50%) have separate quotas. If one category is under-subscribed, the oversubscription from another may be adjusted, except for QIBs. For a successful IPO, a minimum subscription of 90% is required. 

Does applying for more lots increase the chances of getting an IPO? 

No, applying for more lots doesn’t always raise your chances of getting an IPO allotment. Under oversubscribed circumstances, the process gives every applicant at least one lot first priority before thinking through further allocations. For better chances, then, it’s wise to apply in smaller lots. 

How to calculate the probability of IPO allotment? 

Divide the available lots by the overall applications received to find the likelihood of IPO allotment. Let’s say that there are 15,000 lots open for retail investors in an IPO and that 30,000 total applications have been received—that is, one lot apiece. Should you apply for one lot, your chances of getting an allotment are 15,000/30,000, or 0.5 or 50%. 

Disclaimer: Investment in the securities market is subject to market risk, read all related documents carefully before investing. Securities are quoted as examples and not as recommendations.

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