Greeting Friends!

In a previous blog, I discussed the advantages of using IPO as well as a fundamental thumb rule for doing so.

Applying for an IPO used to be a time-consuming process, but with the advancement of technology, the process has changed dramatically. It is now incredibly simple to apply for an IPO with a single click of a button and with lightning speed.

The IPO process used to be lengthy, and the entire application amount was debited from the bank account and blocked for the time. Thanks to SEBI, it is now obligatory to apply through ASBA (offline/online), where the application payment is only held for a short period of time and then charged after allotment.

IPOs are now only open for 3 to 10 working days, and listings are completed in three weeks or less. A UPI id generated by your bank can also be used to apply for an IPO.

Many brokers and payment apps assist us in applying for an IPO in under a minute using UPI. Always preferably use a single bank account for all IPO and stock market operations.

To encourage retail participation, SEBI has also cut the minimum application amount to just 15000 rupees. Individual/retail clients are defined as all applications with a value of less than 2 lakh rupees. HNI applications are those with a value of more than two lakhs. 

How can you improve your chances of getting an allotment? 

Firstly To boost your chances, open demat accounts in everyone’s name and apply for an IPO in everyone’s name. Multiple demat accounts in the same person will not fulfil the purpose because they all have the same PAN number. 

You can also urge staff to open demat accounts in their names and assist them. 

To boost your chances of receiving more shares and allotment, apply for an IPO under the HNI category. 

The methods listed above are some of the ways to improve your chances of receiving more allotments.

I hope you find these blogs interesting to read. Please provide comments. 

Thank you, and good luck with your investments. 

Nitin Kumar Bhandari 

About the Author :

Nitin Bhandari, a passionate & certified research analyst with over 15 years of experience in Equity Markets and founder of Heet Investment, a financial brooking firm in Bengaluru. You can get in touch with him on nitin@heetinvestment.co.in