Enhancing Your IPO Allotment Chances with Srishti Gosavi's Expert Tips

Srishti Gosavi, a renowned finance influencer, offers insightful advice for investors looking to make the most of their opportunities in the soaring Indian stock market. While investing in Initial Public Offerings (IPOs) may seem like a lottery, there are strategic steps you can take to improve your chances of securing an allotment.

1. Opt for Concise Applications

The first step to enhance your chances of IPO allotment is to keep your application size in check. In cases of oversubscription, the focus shifts to ensuring that all applicants receive an allotment from at least one lot. A lengthy application might reduce your chances of success in such scenarios.

2. Diversify with Multiple Demat Accounts

Using multiple demat accounts can be counterproductive, as they are often rejected. A better strategy is to place one lot under each family member's name, ensuring that in the event of oversubscription, every individual is eligible for at least one lot.

3. Be an Early Bird

It's advisable to avoid the last-minute rush by applying during the first two days of a three-day IPO window. Brokers typically do not accept retail applications after midday, even though the exchanges accept bids until 5 PM on the final day. Early submission helps avoid the risk of missing out due to technical issues.

4. Apply in the Shareholder Quota

Applying to the shareholder quota can significantly increase your chances of allotment due to reduced competition. Another tactic is to purchase shares of the parent company, as owning even a single share can qualify you for the shareholder quota, enhancing your likelihood of allotment.

5. Pay Attention to Bid Price

It's crucial to be aware of the IPO's price band. If you bid below the final issue price, you might miss out on the allotment. In highly anticipated IPOs, it's safer to bid at the upper limit or ceiling price to secure your chances

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Maximizing Your IPO Allotment Potential

By following Srishti Gosavi's expert tips, investors can optimize their approach to IPO investments and increase their chances of allotment. While there are no guarantees in the stock market, these strategies provide a solid foundation for making informed decisions and maximizing your investment opportunities.