IPO allotment hacks every retail investor should know

Everyone knows how hyped IPOs get in India. A good company announces an issue, and suddenly everyone—from your neighbour to your colleague—is applying. But when the allotment day comes, many retail investors end up with nothing because demand far exceeds supply. While there’s no magic formula to guarantee shares, there are a few smart steps you can take to improve your chances.

Stick to the retail category

If you’re investing less than ₹2 lakh, you fall in the retail category. This pool has its own quota, which often makes your chances better than in the high-net-worth individual (HNI) segment. So keep your application within this limit instead of trying to go big, at least for allotment purposes.

Use family demat accounts

Here’s a simple hack—apply through multiple accounts of family members. Each unique PAN linked with a demat account can apply separately. So if you, your spouse, and your parents each put in one minimum-lot application, you increase the chances of at least one getting through. Just don’t try multiple applications from the same PAN—they’ll all be rejected.

Always select the cut-off price

When filling out your IPO application, tick the “cut-off” price option. This means you’re willing to pay the highest price in the issue’s price band. If you don’t, and the issue is fixed at the top end, your application may not even be considered.

Go small but wide

Allotments in the retail category usually happen on a per-lot basis via lottery, not by the number of shares you apply for. That means one application for one lot has as much chance as a large one. So it’s better to spread multiple minimum applications across accounts than to put all your money into one big application.

Keep funds ready in your account

Don’t forget the basics—IPO applications use the ASBA system, which blocks the money in your bank account until allotment. If you don’t have enough funds or miss approving the UPI mandate, your application won’t count. Always double-check this step.

Bottom line

IPO allotment feels a bit like buying a lottery ticket—you can’t control the draw, but you can play smarter. Even if you don’t get shares, don’t stress. Sometimes missing out can be a blessing if the IPO is overpriced. The real win is applying only to companies with solid fundamentals, not just following the hype.

FAQs

1. Does applying for more shares increase allotment chances?

Not in the retail category. Allotments are done by lottery per application, so applying for one lot or many doesn’t change the odds. Multiple small applications across accounts work better.

2. Can I apply for an IPO using more than one demat account in my name?

No. Each PAN can only have one valid application. Multiple applications under the same PAN will be rejected.

3. What if I don’t get shares in the IPO?

If you don’t get allotted, your blocked money will be released back into your bank account, usually within a few days.