How to get an IPO allocation

This article is intended to better your chances on getting an IPO allocated , this would be a structured method to approach an IPO . The rest is pure luck !

1) Apply for the bid at cut off price . 

 Don't bid at a particular price either low and high 

2) Apply from as many Different accounts as possible 

This is simple math , the more applications you submit the better the probability of getting an IPO application

You can use ASBA where you just need a PAN card , there is no requirement of a Demat account and the amount remains blocked while earning interest* at the same time 

3) Keep the application details ready before hand 

 Name , DP ID , Permanent Account Number ,etc. should be filled in properly to avoid Technical rejection

4) Apply at least 4 - 5 hours before the IPO subscription window is shut down.

High Net worth Individuals and Institutional Investors tend to subscribe on the last day

 

5) Buy parent or holding companies as there might be quota for such investors 

One example I could think of the IPO of SBI cards where SBI share holders had a special quota for the same . However I didn't see the same for holders of Naukri / Info Edge in Zomato . 

SBI was an example for a parent company . Now we will consider Thyrocare Technologies which will act as a holding Company for Pharm Easy IPO 

I.P.O

The first time a company makes available its shares to the public is known as an Initial Public Offering . An initial public offering or stock launch is a public offering in which shares of a company are sold to institutional investors and usually also retail investors.

* Applying for multiple lots is not worth it as your money will remain blocked , it would be better used by applying multiple times using different Permanent Account Number . Also I assume you would be applying for a good quality IPO where it is next to impossible for a Retail Investor to get more than 1 lot.

* There is a myth that Senior Citizens have more chance in getting IPO allocation and some people do apply in their names

* I have checked the same from my account (https://www.sbi.co.in/web/personal-banking/investments-deposits/stocks-securities/asba)