What are the factors to get an IPO allotment?

Getting shares in a popular IPO can sometimes feel like winning a lottery, and in many ways, it is. But while you can’t control luck, understanding the factors influencing IPO allotment success can definitely help in creating the odds in your favour.

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When an IPO attracts more investors than available shares, allotment happens through a structured process that aims to treat everyone fairly. In the retail investor category, this often means a lottery system, where each valid application has an equal chance of getting a small number of shares. However, there are smart tips to improve IPO allotment chances that investors can follow to avoid technical rejections and maximise eligibility.

The first rule is simple: apply correctly. Even small mistakes, such as incorrect PAN details, mismatched bank accounts, or errors in the UPI ID, can lead to your application being rejected automatically. Double check every entry before submitting. Also, applying from different Demat accounts within your household can increase your overall probability, as long as each has a unique PAN number.

Another important element in how to increase chances of IPO share allocation is to apply at the cutoff price. This tells the system you’re willing to pay the highest possible offer price within the range, which increases the likelihood of allotment in oversubscribed issues. Many investors who enter bids below the final price often miss out completely.

Applying early within the subscription window can also help avoid last minute payment issues. In addition, ensure sufficient funds are available in your bank account, since UPI based applications require the mandate to be approved promptly.

Institutional and high net worth investors follow a proportionate system, so allotment depends on the total amount they bid. But for retail investors, it’s more about getting your application right and letting the process work fairly.

Lastly, remember that oversubscription doesn’t always mean disappointment. Even if you don’t get shares in one issue, consistency matters. Over time, applying to quality IPOs with discipline tends to yield results.

In essence, while you can’t guarantee an allotment, you can definitely improve your odds by being careful, timely, and strategic. A mix of awareness and accuracy often goes a long way in securing the IPO shares.