How to Increase IPO Allotment Chances: Best Tips

With the increasing popularity of Initial Public Offerings (IPOs) in India, many investors face disappointment when they fail to secure allotments in promising companies. The excitement of applying for an IPO can quickly turn to frustration when you see the dreaded “not allocated” status. This article covers different strategies on how to get IPO allotment to help you participate successfully in the primary market.

Understanding the IPO Allocation Timeline and Process

Before exploring strategies to increase your chances of securing IPO shares, it’s important to understand when and how IPO allotments happen. Typically, the allocation process takes place within 3-10 working days after the IPO subscription period closes.

The Securities and Exchange Board of India (SEBI) has established clear guidelines for IPO allocations. For retail investors, when an IPO is oversubscribed, a computerised lottery system determines who receives shares. This means that even with perfect application procedures, there’s an element of chance involved in the process.

The greater the subscription levels, the lower your statistical probability of receiving an allotment. For instance, if a retail portion is oversubscribed 80 times, your chances drop to approximately 1.25% per application.

Effective Strategies to Enhance Your IPO Allocation Prospects

Several legitimate approaches can help you figure out how to increase IPO allotment chances without violating regulatory guidelines. Here are some of them:

Leveraging Multiple Applications Through Family Members

One of the most effective strategies is to apply through various family members. 

• SEBI allows each individual with a PAN card to apply for IPOs independently. 
• You can coordinate IPO applications with your spouse, parents, adult children, and siblings, each using their own demat accounts.
• Each application must be legitimate, with the family member having their own PAN card, demat account, and bank account. 

This approach can mathematically increase IPO allotment probability by giving you multiple entries in the allocation lottery.

Utilising Different Demat Accounts Strategically

While maintaining multiple demat accounts with different depositories (NSDL and CDSL) or brokers doesn’t directly influence the lottery system, it provides alternative application channels. This strategy helps when certain platforms face technical issues during popular IPO subscription periods.

Each demat account should be properly KYC-verified and linked to a different bank account to ensure smooth application processing. This approach is particularly useful for highly sought-after IPOs where application platforms might experience congestion.

Applying for Less Popular IPOs

The mathematical reality is that oversubscribed IPO listings have lower allotment probabilities for individual investors. 

• By researching and applying for less popular or smaller IPOs, you can significantly enhance your chances of success in securing an allocation.
• Many smaller IPOs that don’t generate media hype often provide good investment opportunities with better allotment odds. 

Staying informed about all upcoming listings rather than focusing only on headline-grabbing ones can be a strategic advantage.

Bidding Strategy Refinements

When submitting your bid, consider these tactics:

• Apply early in the subscription period to avoid technical glitches that often occur on the last day.
• Bid at the cut-off price rather than a specific price point to ensure your application remains valid regardless of final pricing.
• Check that your UPI mandate is properly approved and remains active throughout the allocation period.
• Consider the retail investor quota strategic implications and verify that you qualify as a retail applicant (investment below ₹2 lakhs).
• Ensure proper funding in your account and quick approval of UPI mandates, as delayed approvals might affect your application processing.

Top Upcoming IPOs to Watch (23rd–27th June 2025)

1. Kalpataru Ltd IPO
2. HDB Financial Services Ltd IPO
3. Globe Civil Projects Ltd IPO
4. Ellenbarrie Industrial Gases Ltd IPO
5. Suntech Infra Solutions Ltd IPO

Exploring Alternative Investment Categories

If you have a larger investment corpus, you might consider applying through the Non-Institutional Investors (NII) category instead of the retail category. While this requires higher investment amounts (above ₹2 lakhs), the competition can sometimes be less intense, potentially increasing your allocation probability.

Another approach is accepting the final price in the High Net-Worth Individual (HNI) category, where applications are sometimes processed on a proportional basis rather than through a pure lottery system.

Final Thoughts

While these strategies can help how to increase chances of IPO allotment more consistently, remember that IPO investments should form just one part of your overall investment portfolio. Even with optimised approaches, the lottery-based system means there is never a 100% guarantee of allocation.

Ready to implement these strategies for upcoming IPOs? First, ensure you have a reliable demat account. Open a free demat account with Torus Digital today and stay updated with upcoming IPO opportunities to plan your applications effectively.