IPO Opportunities: Mastering the Art of Allotment Success

2024 will go down in history as the year the Indian IPO market went into overdrive! With economic growth firing on all cylinders, market conditions playing fair, and investor confidence skyrocketing, companies have made the most of it—raising jaw-dropping amounts of money.

This year alone, 298 companies debuted on the National Stock Exchange (NSE) and BSE, raking in a whopping ₹1.40 lakh crore. That’s more than double the ₹58,827 crore raised in 2023, with the IPO count shooting up by 22.6%. Talk about leveling up!

From Hyundai Motor India's ₹27,870 crore blockbuster IPO in October 2024 to Swiggy's massive ₹11,327 crore debut in November 2024, the IPO market has been buzzing with unprecedented excitement. With these record-breaking milestones, India now proudly stands as the world’s second-largest IPO market in 2024, trailing only the U.S.—a remarkable achievement worth celebrating! 

But here’s the catch: in this oversubscribed frenzy, getting an IPO allotment feels like hitting the jackpot. Don’t worry, though—we’ve got you covered with tips to up your game and snag those prized shares. Let’s dive in! 

1. Play Smart with Multiple Demat Accounts

Increase your chances of IPO allotment by applying through multiple family accounts! Family members, minors, or even a Hindu Undivided Family (HUF) account—each can have their own demat account, giving you multiple entries in the allotment process. Don’t limit yourself—maximize your opportunities today! 

For example, if your family has four members with unique demat accounts, applying through all four instantly multiplies your chances. Just ensure each account is linked to a distinct PAN to avoid any disqualifications. 
Why settle for one application when you can apply through multiple demat accounts? 

If the IPO belongs to a company that has a listed parent entity, owning even one share of the parent can unlock a hidden advantage—the shareholder quota. This category is often underutilized, increasing your chances of allotment compared to the oversubscribed retail category.

For instance, a single share in Tata Motors can make you eligible to apply under the shareholder quota for Tata Passenger EV’s IPO. During the application process, select “Existing Shareholder” as the investor type to claim this edge. 

Always apply for the IPO at the higher end of the IPO price band . Usually, the cut-off price is the highest price in an IPO’s price band, and bidding at this price demonstrates your willingness to pay the maximum if required. This simple step ensures your application is not disqualified due to a price mismatch.

For example, if the price band is ₹500-₹510, and you bid at ₹505 but the IPO closes at ₹510, your application won’t make the cut. Always go for the cut-off price to secure your spot. 

A tiny mistake in your application can lead to outright rejection. From your PAN and demat account number to your bank details, ensure every piece of information is accurate.

Don’t forget to approve the UPI mandate request. Without this step, your application won’t be processed. 

Many investors wait until the last day to submit their IPO applications, which often leads to server crashes, payment delays, or missed deadlines. Avoid the stress and apply as early as possible for a seamless experience. 
With the ArihantPlus app, you can use the Pre-Apply IPO feature to apply early and enhance your chances of success.

What are you waiting for? (Apply now and stay ahead in IPO applications!) 

The IPO landscape in India is thriving, offering incredible opportunities for investors. By applying through multiple accounts, exploring the shareholder category, bidding at the cut-off price, and avoiding errors, you can significantly enhance your chances of success.

Stay informed, stay prepared, and make the most of the IPO boom. The next jackpot could be yours! 💸