Cracking the IPO code: Tips to secure allotments amid heavy oversubscription

livemint.com:

The initial public offering (IPO) frenzy is pushing more investors to test their luck, but despite the enthusiasm, most applicants seem to miss out amid heavy oversubscription, and the process remains largely a game of chance.

While strategies like using multiple Permanent Account Numbers (PANs) or shareholder quotas might slightly improve allotment chances, the odds still remain slim. Bajaj Housing's recent blockbuster IPO, for example, saw prices double, but few managed to secure the shares.

So much so, that X (formerly Twitter) was flooded with memes highlighting the struggle to secure an allotment. Bloomberg data showed that the IPO was oversubscribed more than 60 times.

However, understanding how allotments work and avoiding common mistakes is key for those looking to boost their odds and avoid rejections in today's crowded IPO space.

To increase your chances, applying through multiple PAN-linked demat accounts is a popular strategy. Instead of applying for the entire amount through one account, splitting it across several accounts gives you more «lottery tickets.» Just ensure each account is linked to a unique PAN, as multiple applications under the same PAN will be rejected.

Sample this: Let's say you had ₹60,000 and planned to apply for the Bajaj Housing IPO, here are two options:

Option 1: Apply for ₹.60,000 from a single demat account.

Option 2: Split the ₹60,000 across four accounts (minimum lot size is ₹14,980).

Option 2 would have been better, as applying through multiple PAN-linked demat accounts could increases your chances of getting an allotment. Some investors even use family or friends' demat accounts for this purpose.

However, according Securities and Exchange Board of India (Sebi) rules, you cannot