IPO Allotment Secrets Revealed: How to Increase Your Chances in 2025
Introduction: What’s the Truth Behind IPO Allotment?
For new investors in the stock market, IPOs (Initial Public Offerings) offer an exciting opportunity to earn big. But many people face disappointment when they apply and get the message: “Not Allotted.”
So how does IPO allotment actually work? Is there a secret formula? In this post, we reveal the real secrets behind IPO allotment — based on SEBI rules and real-world experiences.
How IPO Allotment Works – SEBI Guidelines
Retail Investor Rules:
- Retail investors can apply up to ₹2 lakh in an IPO.
- 35% of the IPO quota is reserved for retail investors.
- Allotment is done via a computerized lottery system if oversubscribed.
Proportional vs. Lottery System:
- If the IPO is undersubscribed – proportionate allotment happens.
- If oversubscribed – allotment is through a random lottery.
Secrets Revealed: How to Boost Your IPO Allotment Chances
1. Apply with the Minimum Lot Only
Every PAN gets priority for minimum lot applications. In oversubscribed IPOs, chances are higher with minimum lot applications.
Example: In the Zomato IPO, many minimum lot applicants received allotment, while large applicants were left out.
2. Use Multiple PANs (Legally)
Apply using family members’ PANs like father, mother, wife, etc. Each PAN counts separately in the allotment process.
Note: Multiple applications from the same PAN will be rejected.
3. Approve UPI Mandate Quickly
Delay in approving the UPI mandate can lead to application rejection. Approve it instantly, preferably within 12 hours.
4. Use Trusted Brokers and ASBA
Technical issues on broker platforms can cause application failures. Use trusted apps like Zerodha, Groww, or your bank’s ASBA net banking.
5. Avoid Last Day Applications
Heavy traffic on the last day can delay your application. Apply on Day 1 or early on Day 2 for smooth processing.
6. Prefer ASBA Over UPI (Advanced Users)
Bank-based ASBA applications are more stable than UPI. You can apply via SBI, HDFC, ICICI, etc. using ASBA.
7. Ignore Common Myths
- “Applying for ₹2 lakh gives better chances” – False.
- “More money means guaranteed allotment” – False.
- “High GMP means higher allotment chance” – Totally incorrect.
Bonus Tip: GMP Has No Role in Allotment
GMP (Grey Market Premium) only indicates expected listing gains. It does not impact allotment. Allotment is based on PAN and lottery rules, not GMP.
Case Study: Nykaa vs Paytm IPO
| IPO | GMP (Pre-listing) | Oversubscription | Retail Allotment Trend |
|---|---|---|---|
| Nykaa | ₹570 | 80x | Higher allotment to minimum lot applicants |
| Paytm | ₹0 | 1.66x | Even with lower demand, many applications failed due to UPI/technical issues |
How to Check IPO Allotment Status?
Use these trusted links to check your IPO status:
Allotment results are usually published within 3–5 working days after IPO closing.
Conclusion: Smart Strategy Wins
There’s no magic to IPO allotment — it’s a transparent and rule-based process. But with smart strategies like applying early, using multiple PANs, and avoiding UPI delays, your chances can improve drastically.
Golden Rule: “Apply early, apply smart, apply legally.”
Share This Knowledge
If you found this blog helpful, share it with your friends who apply for IPOs regularly.
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