Securing an Initial Public Offering (IPO) allotment can feel like winning a lottery ticket. With popular issues often oversubscribed by 50x or even 100x, the odds seem stacked against the average retail investor.
However, getting an IPO allotment isn’t purely luck. It’s about playing the system intelligently, leveraging regulatory guidelines, and meticulously avoiding technical rejections. By adopting a handful of proven, high-probability strategies, you can dramatically increase your chance of securing shares and boosting your potential listing gains.
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Here are the 10 best working tricks to turn the odds in your favor and maximize your IPO allotment success rate.
Top 10 Strategies to Increase Allotment Chances
In the retail category (applications up to ₹2 Lakh), the allotment process is a computerised lottery. Since every valid application has an equal chance, the goal is simple: increase your number of valid lottery entries.
1. Leverage Multiple Family Demat Accounts (The PAN Rule)
This is the single most effective legal strategy. SEBI allows only one application per Permanent Account Number (PAN) per IPO. If you apply twice with your own PAN, both applications will be rejected.
The trick is to use Demat accounts registered under the unique PANs of eligible family members (spouse, parents, adult children).
Applicant
PAN
Application Status
Probability Impact
Your Account
PAN A
Valid Entry 1
1X
Spouse’s Account
PAN B
Valid Entry 2
2X
Parent’s Account
PAN C
Valid Entry 3
3X
Your Account (2nd attempt)
PAN A
Guaranteed Rejection
0X
Pro Tip: Ensure each application uses a unique Demat account, a unique PAN, and ideally a bank account/UPI ID linked to that specific PAN.
2. Bid Precisely at the Cut-Off Price
When filling out your IPO application, you are asked to enter a bid price within the given band (e.g., ₹100-₹105).
Fixed Bid: If you bid ₹100, but the final issue price is discovered to be ₹105, your application is rejected.
Cut-Off Price: Selecting the “Cut-Off Price” option means you agree to pay the highest price within the band (₹105 in this example).
Why it works: In an oversubscribed IPO, bidding at the cut-off price ensures your bid is always valid, eliminating the risk of rejection due to incorrect pricing.
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3. Stick to the Single-Lot Strategy in Retail
A common misconception is that applying for the maximum quantity (e.g., ₹2 Lakh worth) increases your chances. This is false for the retail category.
For heavily oversubscribed IPOs, the lottery system is designed to give at least one lot to as many unique retail applicants as possible. Whether you apply for 1 Lot or 13 Lots, you get one entry into the lottery.
Strategy: Instead of submitting one maximum-lot application, submit multiple single-lot applications across all available family PANs (Trick #1).
4. Apply Early (Day 1 or Day 2)
While the lottery is random and the time of application does not affect the draw, applying early dramatically reduces the chances of a technical rejection.
Waiting until the final hours of Day 3 can lead to:
Server Overload: Broker/Bank systems slow down or crash.
UPI Mandate Expiry: Delay in approving the payment mandate can invalidate the application.
5. Approve UPI Mandates Instantly
If you apply via the UPI route (ASBA), you will receive a payment request mandate on your UPI app (PhonePe, GPay, etc.). This mandate is time-sensitive.
Failure to approve the mandate before the deadline (usually 5 PM on the closing day) will result in your application being considered invalid and instantly rejected. Set an immediate reminder or approve it right after applying.
Advanced Strategies & Technical Safeguards
These tricks are for investors who want to go the extra mile or are eligible for specific quotas, and for those looking for a technical edge.
6. Target Reserved Quotas (Employee/Shareholder)
Many IPOs set aside a portion of shares for specific groups:
Employee Quota: If you are an employee of the issuing company or a subsidiary, apply under this category. This quota is often undersubscribed or less subscribed than the retail pool, greatly boosting your chances.
Shareholder Quota: If the parent company of the IPO issuer is already listed, investors who hold shares of the parent company are eligible.
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7. Consider the HNI/NII Category (for large capital)
The retail category uses a lottery system. The High Net-worth Individual (HNI) or Non-Institutional Investor (NII) category (application amount above ₹2 Lakh) uses a proportionate allotment system.
Key Difference: If the HNI category is subscribed 50x, an HNI applicant is virtually guaranteed to get 1/50th of the shares they applied for. If you have the capital and want a guaranteed allotment (though smaller), this is the route to take.
8. Use the ASBA (Bank) Facility Over Pure UPI
While UPI is fast, using the ASBA (Application Supported by Blocked Amount) facility through your Net Banking portal is often considered a safer, more robust option.
The ASBA process blocks the money directly in your bank account, minimizing the risk of a technical glitch or payment failure associated with the UPI ecosystem during high-traffic times.
9. 🤫 Ninja Trick: Leverage Less Congested Banking Channels
You may have heard that applying through a specific bank (like Canara Bank or a smaller private bank) gives better allotment chances. This isn’t because the bank “cheats” the system, but rather a subtle technical edge:
Avoid Peak Congestion: On the last day of a highly-subscribed IPO, the UPI and ASBA servers of the largest, most popular banks face maximum load. This increases the chance of a payment mandate delay or a technical processing error.
Strategy: Applying through a mid-sized or lesser-used Self-Certified Syndicate Bank (SCSB) can sometimes mean your application data is processed faster and smoother, ensuring it is uploaded to the exchange system without a hitch, thus avoiding the technical rejection that plagues last-minute applicants.
10. Avoid Common Rejections: Double-Check Everything!
Nearly 10-15% of applications are rejected on technical grounds. Don’t let a small mistake cost you a golden ticket.
Rejection Ground
Mitigation Trick
Insufficient Funds
Keep 10% more than the required bid amount in your bank account.
Duplicate PAN
Only one application per PAN. Use family member PANs for multiple applications.
Mismatch
Ensure the bank account, UPI ID, and Demat account are all linked to the same PAN of the applicant.
Incorrect Price Bid
Always select the Cut-Off Price option.
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📊 Allotment Strategy Comparison
Feature
Retail Investor (RII)
HNI/NII Investor (Above ₹2 Lakh)
Investment Range
Up to ₹2,00,000
₹2,00,001 and above
Allotment Method
Lottery System (All valid applications have equal chance of 1 lot)
Proportionate Basis (Guaranteed percentage of applied shares)
Best Strategy
Maximize unique applications (multiple PANs) & apply for 1 Lot per application.
Maximize application amount to guarantee a higher number of shares.
Probability
Low chance of allotment, but if allotted, you get a minimum of one lot.
Higher probability of getting some shares based on application size.
Disclaimer:This article is for informational and educational purposes only. Initial Public Offerings (IPOs) are subject to market risks, and there is no 100% guarantee of allotment or listing gains. The strategies discussed above aim to improve the statistical probability of allotment in a fair and regulatory-compliant manner. Investors should conduct their own research and consult with a certified financial advisor before making any investment decisions.
