Although buying an Initial Public Offering (IPO) presents an interesting prospect, it is not always assured to get shares during the allocation procedure. High demand causes many retail investors to fight for allocated shares. Still, you increase your odds by using the correct techniques. This tutorial will go over doable strategies to maximize your IPO investment through the finest trading platform and mobile trading apps, therefore improving your chances of allocation.
1. Apply across several demat accounts
Applying through several Demat accounts under different names—family members like spouse, parents, or siblings—is one of the most successful strategies to raise your chances of IPO allotment. For retail investors, IPOs use a lottery-based approach, hence several applications can raise your chances. But steer clear of submitting several bids from the same PAN since this could be rejected.
2. Select the Cut-Off Price for Your Bidding Efforts
Choose the “cut-off price” option always when applying for an IPO. This guarantees that your bid is set at the company’s selected price, therefore increasing your chances of getting an IPO allocation. Many of the investors bid at a lower price in order to save money, but this can lessen their allocation likelihood.
3. Handle payments faster using UPI
Nowadays, several trading platform systems let IPO applications be made using UPI. By use of UPI, payment processing is guaranteed faster and more smoothly, so avoiding delays that could cause rejection. Verify that your UPI ID links to your bank account and has enough money for blocking.
4. Invest in small and medium-sized IPOs
Highly popular IPOs often get overwhelming responses, which lowers the possibility of IPO allocation for ordinary investors. Rather than concentrating just on large IPOs, think about applying for solid fundamental small or mid-sized companies. These IPOs can have less competition, which raises your possibility of getting shares.
5. Stay clear of last-minute requests
Many investors apply just on the last day, which occasionally causes technical problems or transaction failures. Apply on the first or second day of the IPO launch using a trustworthy trading platform or mobile trading app to guarantee seamless processing of your bid.
6. Safe Transactions Using ASSA Facility
The application supported by Blocked Amount (ASBA) facility guarantees that the bid amount stays in your bank account until the IPO allocation process is finished. This approach guarantees your money as well as increases your eligibility for the distribution process. For convenience most mobile trading apps and internet trading platform services offer ASBA-based IPO applications.
7. Submit a minimum lot size only application
Applying for one lot (minimum investment) usually increases your chances of being assigned than bidding for several lots. Retail investors should This is so because bigger bids do not imply priority and IPO allotments in the retail category are done at random.
8. Review Previous Performance of Your Broker
A few trading platforms have greater records of success with regard to IPO allocation. Before deciding which mobile trading app or online trading platform is fit for IPO applications, investigate many brokers and their allocation records.
Conclusion:
Getting a good allocation for an IPO calls both strategic preparation, early application, and the correct technique. Your chances of getting shares in an IPO investment will be much increased by using several Demat accounts, bidding at the cut-off price, using the finest trading platform, and applying through mobile trading apps with UPI and ASDA facilities.