Clare Louisea 
Investing in an Initial Public Offering (IPO) allows you to buy shares in a company when it first becomes public. This can be a great chance for investors, but often, demand exceeds supply. As a result, not everyone who applies for an IPO gets shares. However, using a trading application can help improve your chances of securing an IPO allotment. In this blog, we’ll explore how IPO allotment works, the importance of opening a Demat account, and how an online share trading app can help you increase your chances of getting IPO shares.
How IPO Allotment Works
To maximise your allotment, you need to know how IPO allotment works. When a company launches an IPO, it offers a limited number of shares to the public. Investors apply for these shares, but often, more people apply than there are shares available. In such cases, the company uses a lottery system to decide who gets the shares.
The IPO allotment process is regulated by the Securities and Exchange Board of India (SEBI). Retail investors, or individual investors, are often given preference in IPOs, but this does not guarantee that everyone who applies will get shares. Since the demand is usually high, getting an allotment can be a matter of luck.
Boosting Your Opportunities for IPO Allotment with a Trading Application
To increase your chances of obtaining an IPO allotment, use an online share trading app to simplify the application process, manage multiple bids, and track your application, which requires opening a Demat account.
Here are some key benefits of using a trading application for IPOs:
- Fast and Convenient:IPO applications can be applied directly from your smartphone or computer.
- Multiple Applications: Managing multiple Demat accounts is easy with a trading application.
- Real-Time Information: An online share trading app provides real-time updates about new IPOs. You can see how many shares are available and how many people have applied. This helps you make informed decisions.
- Faster Transactions: Trading applications often provide faster payment processes, ensuring your IPO application is processed quickly and your bid is accepted.
- User-Friendly Interface: Trading apps are designed for beginners, ensuring a user-friendly interface and guiding the process of applying for IPOs, without requiring financial expertise.
Steps to Maximise Your IPO Allotment
Now that you understand the benefits of using a trading application, here are some tips to improve your chances of getting an IPO allotment:
1. Apply Early
To maximise your chances, apply as early as possible. Many online share trading apps send alerts when a new IPO is about to open. Set these notifications to act quickly.
2. Apply for Multiple Lots
When you apply for an IPO, you can choose how many lots of shares to bid for. Applying for multiple lots can sometimes increase your chances. However, do not apply for more than you can afford. Stick to your budget.
3. Use Multiple Demat Accounts
Another strategy is to apply for the IPO through multiple Demat accounts. You can apply using accounts in the names of family members. Each application is treated separately, which can increase your chances.
4. Avoid Last-Minute Applications
Submitting your application at the last minute might lead to delays or missed opportunities. Systems can get overloaded, and payments might not go through in time. Applying early ensures that everything is processed smoothly.
5. Choose the Retail Category
Select the retail investor category when applying for an IPO, as IPOs typically allocate a portion of shares to this category, increasing your chances of receiving shares.
Opening a Demat Account
To apply for an IPO, you must open a Demat account, which holds your shares electronically, enabling you to buy, sell, and store them in digital form, and without it, you cannot participate in the stock market. Many trading applications offer easy processes for opening Demat account. To apply for IPOs and start investing, provide basic information like identification documents and bank details to set up a trading account.
Conclusion
Using a trading application can significantly improve your chances of securing IPO shares. By applying early, managing multiple applications, and ensuring fast payments, you can increase your chances of obtaining shares. Online share trading apps simplify the process, making it easier for beginners and experienced investors. Opening a Demat account is the first step, and a trading application will guide you through the process, giving you a better chance at securing IPO shares.
