Increase IPO Allotment Chances: Proven Strategies for Investors

Missing out on popular IPOs like Bajaj Housing Finance or Waaree Energies can be frustrating for investors. However, there are strategies to boost your IPO allotment chances.

IPO allotments vary across different investor categories:

1. Retail Individual Investors (RII): Maximum investment of ₹2,00,000.

2. Small HNIs: Investments between ₹2,00,000 to ₹10,00,000.

3. Large HNIs: Minimum investment of ₹10,00,000.

Most small HNIs often apply in the Small HNI category, but this is a mistake. For example, in the Waaree Energies IPO, the Small HNI category had a 53x subscription rate, while the Big HNI category had 71x. However, the math reveals that Big HNI investors have better chances. After adjusting for the application size, the Big HNI category’s effective subscription rate was 14x, compared to 53x for Small HNIs.

To maximize your chances:

• Invest ₹10 lakh or more: Apply in the Big HNI category.

• Invest less than ₹10 lakh: Stick to the Retail category and consider applying through multiple Demat accounts (one per PAN card).

Common Mistakes to Avoid:

1. Don’t apply multiple times on the same PAN card.

2. Be patient with UPI mandates to avoid disqualification.

3. Always apply at the cut-off price band.

Tips to Increase Your IPO Chances:

• Use family members’ Demat accounts with unique PANs.

• Monitor subscription data before the application closes.

• Diversify your applications across multiple IPOs.

Final Thoughts: By understanding IPO allocation categories and applying probability-based strategies, investors can significantly improve their chances of receiving allotment.