IPO Not Allotted? Here Are the Tips to Follow

Are you frustrated by the disappointment of IPO Not Allotted shares? Investing in IPOs can be thrilling, but the high demand often leaves many investors without an allocation. But fret not! This article is here to help you improve your chances for the next time.

By understanding the reasons behind non-allotment and learning smart and ethical tips, you can significantly enhance your IPO success. Let’s dive into the strategies that can lead you to better IPO outcomes and increase your chances of getting allotted shares.

Reasons for Failed IPO Allotment:

Too Much Demand:

When IPO demand is high, some investors might not get shares or get less than applied.

Proportional Allotment:

If oversubscribed, shares get allocated proportionally, affecting those applying for many shares.

Technical Rejections:

Mistakes in application forms can lead to rejection.

Price and Market Impact:

High IPO price or bad market conditions can affect allotment.

Tips to Increase IPO Allocation:

Research Thoroughly:

Learn about the company, its finances, growth prospects, and risks. Knowing more helps you make better choices.

Apply One IPO per PAN:

Follow the rules and apply for only one IPO using your PAN. Multiple applications with the same PAN can lead to disqualification.

Retail Category Advantage:

Choose the retail category if available. It offers a separate share pool for retail investors, raising your chances.

SME IPO Opportunities:

Consider smaller company IPOs. They may have lower demand, which means better chances for you.

Lesser-Known IPOs:

Don’t always go for famous IPOs. Lesser-known ones might have less competition, giving you an edge.

Timely UPI Mandate Approval:

Approve the UPI mandate early. It makes the payment process smoother.

Apply at Cut-Off Price:

Apply at the cut-off price to get considered at the final issue price. It’s a strategic move.

Parent Company Shares (If applicable):

In some IPOs, shareholders of the parent company receive preferential allotment. If you already hold shares in the parent company, it might enhance your chances of getting allotted shares in the IPO.

Avoid Last-Minute Rush:

Don’t submit your application at the last moment. Take time to check for errors.

Closing Thoughts

Use these smart tips to increase your IPO allocation chances. Do research, stick to rules, and apply strategically. Avoid last-minute rush and consult an advisor. Now you’re all set to ace your next IPO investment journey.

IPO Faqs

  • Can IPO be applied twice?

    No, in most cases, an individual investor cannot apply for an IPO (Initial Public Offering) more than once using the same PAN (Permanent Account Number) in India. Applying multiple times for the same IPO using the same PAN is generally considered as a violation of SEBI (Securities and Exchange Board of India) regulations and can lead to the rejection of all applications made by the investor.

  • Can I sell an IPO just after listing?

    Yes, you can sell IPO shares on the stock exchange immediately after they are listed for trading, except for certain investors like anchor investors who may have a lock-in period.

Disclaimer : Remember that IPO investments come with inherent risks, so it’s vital to consult a registered financial advisor and understand your risk tolerance before proceeding.

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