When a new company launches its Initial Public Offering (IPO) in India, millions of investors rush to apply, hoping to get an allotment and enjoy potential listing gains. However, many investors are left disappointed when they find that their application wasn’t successful. So, how can you increase your chances of getting an IPO allotment?
In this detailed and practical guide, we’ll explore how IPO allotment works in India, what factors affect your allotment probability, and expert-backed tips to improve your odds of success — all explained in simple, easy-to-understand language.
Understanding How IPO Allotment Works
Before diving into tips, it’s essential to understand the allotment process set by the Securities and Exchange Board of India (SEBI).
In India, IPO shares are allotted using a lottery-based system for the retail investor category. When an IPO is oversubscribed (more people apply than the number of shares available), the allotment process becomes entirely computerized and random.
➤ Retail investors can apply for IPOs with an investment of up to ₹2 lakh.
➤ Each retail investor is treated equally in terms of allotment probability—meaning even if you apply for multiple lots, your chances remain the same as someone who applies for just one lot.
➤ The allotment is done in a fair and transparent process, usually conducted by the registrar of the IPO, such as Link Intime or KFin Technologies.
For example, if an IPO is oversubscribed 30 times in the retail category, your chance of getting an allotment is roughly 1 out of 30.
Why IPO Allotment Is So Difficult
In recent years, many IPOs in India—especially from popular sectors like fintech, healthcare, and manufacturing—have seen massive oversubscriptions.
Let’s look at an example:
In the Zomato IPO, the retail portion was subscribed around 7 times, while in the Paras Defence IPO, it was over 300 times. That means the probability of getting a single lot was less than 1%.
So, while IPOs can offer high listing gains, the odds are often against small investors—unless you know how to increase your chances strategically.
Top Tips to Improve IPO Allotment Probability in India
Now that you know how the allotment works, let’s move to the part that matters most: how you can actually improve your chances of getting shares allotted.
Each of these tips is practical, SEBI-compliant, and proven by experience.
1. Apply Through Multiple Demat Accounts (Legally)
➤ One of the smartest ways to increase allotment chances is to apply using multiple Demat accounts under different PAN numbers.
You can apply in the name of your family members — spouse, parents, or siblings. Each application must have:
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A unique PAN number
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A separate Demat account
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A unique bank account for UPI
This way, if an IPO is oversubscribed, you’ll have multiple entries in the allotment draw, legally boosting your odds.
2. Always Apply at the Cut-off Price
➤ When filling out your IPO application, always choose the Cut-off Price option.
This means you’re willing to buy shares at the highest price within the IPO’s price band. Doing this ensures that your application is considered valid, even if the final price is set at the upper limit.
Many investors miss out on allotments simply because they bid below the cut-off price.
3. Don’t Apply for Multiple Lots in One Account
➤ Many investors believe that applying for multiple lots (say 10 lots instead of 1) from a single Demat account increases their chances.
That’s not true. Under SEBI rules, in case of oversubscription, allotment is done on a lottery basis per applicant, not per lot.
So whether you apply for 1 lot or 10 lots, your probability remains the same. Instead, spread your applications across multiple accounts.
4. Apply Early but Not Too Early
➤ While applying early ensures your UPI mandate is processed on time, sometimes technical issues or UPI delays can cause rejections.
Experts recommend applying on the second day of the IPO window, after ensuring that the registrar’s systems are running smoothly and early glitches are resolved.
5. Use Reliable UPI Apps Linked with Your Bank
➤ Many IPO rejections happen because of UPI payment failures or delays in mandate approval.
Always use a reputed and stable UPI app like BHIM, Paytm, or the official app of your bank. Avoid using newly launched or unstable apps that may cause technical errors.
6. Ensure Sufficient Funds in Your Bank Account
➤ Before applying, make sure your bank account has enough funds to cover the IPO application amount.
If your UPI mandate fails due to insufficient balance, your application is automatically invalid. Always keep a small buffer over the required amount.
7. Check the Registrar and Subscription Data
➤ During the IPO period, check the daily subscription data released by NSE or BSE.
If the retail portion is already oversubscribed heavily (say 40x), you may want to allocate your funds elsewhere or try for allotment under another category (like HNI or employee quota, if eligible).
8. Consider Applying in the HNI (NII) Category
➤ If you have funds over ₹2 lakh, you can apply under the Non-Institutional Investor (NII) category.
This category is divided into two parts:
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Small HNI (₹2–10 lakh)
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Big HNI (above ₹10 lakh)
While the subscription levels are usually high, the allotment method is proportional, meaning higher investment often results in a partial allotment.
9. Avoid Technical or Minor Errors
➤ Even a small error can lead to rejection — such as incorrect PAN, mismatched name, wrong UPI ID, or mismatched Demat details.
Always double-check your application before submitting.
10. Track the Allotment Status After Closing
➤ Once the IPO closes, you can check your allotment status on the registrar’s official website (Link Intime, KFintech, or BSE India).
If you didn’t get allotment, don’t worry — your funds will be unblocked automatically within a few days.
Pro Tip: Stay Consistent and Patient
Many investors feel disheartened after several failed attempts, but persistence pays off. IPO allotment is partly luck-based, but consistent applications across multiple accounts over time statistically increase your success rate.
Conclusion: Smart Strategy Beats Luck
Getting an IPO allotment in India may seem like a game of luck, but smart investors know it’s also about strategy, timing, and accuracy.
By applying through multiple accounts, bidding at the cut-off price, avoiding errors, and using reliable UPI methods, you can significantly improve your chances of getting allotment — all while staying within SEBI’s rules.
Remember, every IPO is different. Research the company, understand the demand, and apply wisely. Even if you don’t get an allotment every time, discipline and consistency will eventually lead to success.
In the IPO world, patience, preparation, and precision often beat pure luck.
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