Over the past few years, Initial Public Offerings (IPOs) have created a real buzz in the stock market. With many new listings offering strong returns on day one, it’s no surprise that more and more retail investors like you are looking to get involved. But here’s the catch! Even after applying, you might not get an allotment at all.

It is because most IPOs, especially those of popular companies, get oversubscribed. That means far more people apply for shares than the number of shares available. Don’t let that put you off. If you know a few smart tips, you can boost your chances of getting those coveted shares. This blog talks about how to improve your IPO allotment chances by following the right tips!

What is an IPO Allotment?

When you apply for an IPO, the shares you are hoping to buy don’t automatically land in your account. Instead, there is a process called IPO allotment, where those shares are distributed to investors like you. The way it works depends on demand and the allotment method. If a lot of people apply, you might only get a portion of the shares or in some cases, none at all.

Allotments are usually handled through either a lottery system or a proportionate (pro-rata) basis, depending on the number of applications received. So, even if you applied, there is no guarantee you will get all the lots you requested.

This approach keeps things fair, especially when demand is much higher than the available shares. It ensures that shares are spread out among as many applicants as possible. Once the allotment is done, any shares you have been allocated will be credited straight into your demat account. Shares that are not allotted during this process will become available on the secondary market where you can buy or sell them once they are officially listed.

Steps to Increase Chances of IPO Allotment in 2025? Expert Tips & Insights

Check these IPO allotment tips to learn how you can improve your IPO allotment chances this year:

1. Apply for Just One Lot

A “lot” refers to the minimum number of shares you can apply for in an IPO. Companies decide this lot size in advance. For example, if one lot contains 100 shares, you must apply for at least 100 shares.

Now, here’s the trick! In oversubscribed IPOs, applying for just one lot can actually work in your favour. The allotment system is designed to prioritise smaller applications in the retail category, meaning your single-lot application stands a better chance than bulk bids. It is also wise to monitor the subscription level of an IPO before choosing the lot size.

2. Use Multiple Demat Accounts

You are allowed to apply for IPOs using multiple demat accounts as long as each account has a unique Permanent Account Number (PAN). This means you can submit applications in the names of your parents or siblings, provided they’ve got valid PANs and demat accounts.

Every additional, valid application is an extra chance in the IPO lottery. Just make sure every application is filled correctly as even a small mistake can lead to rejection. And once you have applied, don’t forget to check the IPO allotment status for each account.

3. Always Opt for the Cut-Off Price

When filling in your IPO application, you will be asked to choose a bid price within the price band set by the company. Your best move? Tick the “cut-off price” option.

This tells the company that you are willing to pay the highest possible price within the specified range. It improves your chances, especially in oversubscribed IPOs, where the final price is usually set at the upper limit. Bidding lower could leave you empty-handed.

4. Don’t Wait Until the Last Minute

It might be tempting to wait until the final day of the IPO window to apply, but that’s risky. High traffic can slow down systems, cause payment glitches, or result in failed submissions.

Apply on day one or two instead. Have your documents and bank account details ready so the process is smooth and quick.

5. Avoid Common Technical Errors

You could do everything right but still get rejected due to a simple technical issue. That’s why it’s crucial to double-check your application. Ensure that the PAN, demat account number, and bank details are all accurate.

Don’t submit multiple applications with the same PAN. Also, ensure your bank account has enough funds to cover the application as your application can be cancelled if the payment fails.
Following these basics can significantly reduce your chances of rejection due to technical reasons.

6. Consider Buying Shares of the Parent Company

This is a lesser-known IPO allotment strategy. If the IPO is being issued by a subsidiary of an already listed company, holding shares of the parent company might help.

Some companies reserve a portion of the IPO for their existing shareholders. So, if you hold shares in the parent company ahead of the record date, you could become eligible under the shareholder quota, giving you a better shot at the allotment. This isn’t guaranteed, but it’s worth looking into.

Moreover, you should consider opening demat accounts with multiple brokers to increase your chances of IPO allotment. This is because different brokerage firms have varying allocation capacities. Applying through multiple brokers will ensure you’re better positioned to make the most of the opportunities as they keep coming.

Apply on Share.Market for Upcoming IPO listed on NSE & BSE

Final Thoughts

Though an IPO is drawn by a lottery system, being consistent always helps in getting an IPO allotment. You should keep trying for different IPOs through different brokers to amplify your IPO allotment chances.

Want to stay ahead of the curve? Open a Demat account with Share.Market and regularly check for IPO announcements, subscription updates, and listing dates.

FAQs

1. How to increase IPO allotment chances for retail investors?

Apply through multiple demat accounts, stick to just one lot, and always bid at the cut-off price. Also, double-check your application details to avoid any technical rejections.

2. Does applying for more lots increase IPO allotment chances?

Not really. For oversubscribed IPOs, each retail investor stands the same chance of getting just one lot, whether you applied for one or ten.

3. Is it better to apply at the cut-off price for IPO allotment?

Yes. Choosing the cut-off price shows you are willing to pay the maximum amount within the band, which increases your odds, especially when demand is high.

4. What are the chances of IPO allotment in oversubscribed IPOs?

If more people apply than there are shares available, the registrar uses a lottery system to allot shares randomly. Everyone applying for one lot gets an equal shot.

5. Is IPO allotment a matter of luck?

Yes. If more investors show interest in an IPO, only a selected few receive the allotment as per the lottery system. It means that the IPO allotment chance is determined by pure luck here.

6. What is the role of the registrar in IPO allotment?

The registrar processes all applications, allocates shares to successful applicants, handles refunds for unsuccessful ones, and ensures everything runs smoothly.

7. How to avoid rejection of IPO applications?

Fill in accurate details, ensure your KYC is up to date, and confirm that your bank account has sufficient funds before you apply.

8. Should I apply for an IPO on the first day or the last day?

You should definitely apply early, ideally on the first or second day. Last-day rushes can cause server issues and failed applications.

9. Are SME IPO allotment chances higher?

Not necessarily. SME IPOs often have larger lot sizes and fewer retail applicants, but that doesn’t increase the chances. Allotments remain limited and depend on demand.