IPO Shares: How They're Assigned and How to Improve Your Chances

Have you ever applied for a popular Initial Public Offering (IPO) but were disappointed when you didn't get any shares? You are not the only one. For many regular investors, getting shares in a big IPO feels like a lottery win. This makes people wonder: "Do some brokers like Zerodha, Groww, or Upstox have a better success rate for getting IPO shares?"

Let's look at how IPO shares are given out, explain the process, and share some tips that could improve your chances of getting them.

How IPO Shares Are Given to Regular Investors

When a company goes public, it sells its shares to investors for the first time in an IPO. The company and its managers gather all the valid applications. If more people apply for shares than are available, it's called an oversubscribed IPO. In this case, a lottery system decides who gets the shares among regular investors.

The Securities and Exchange Board of India (SEBI) oversees this process and sets rules to make sure it's fair. When an IPO has too many applicants, a computer lottery gives out the shares randomly and fairly to regular investors. This basically means getting shares in a popular IPO comes down to luck.

The Big Question: Do Some Brokers Give You a Better Chance?

Investors talk about this a lot. Does using a certain platform like Zerodha, Groww, or Upstox give you an advantage?

The simple answer is no. Your choice of broker does not affect your chances of getting IPO shares. The IPO's official registrar handles the process using a random, computerized system, especially for regular investors. Every broker is treated the same in this lottery. It doesn't matter if you apply early or late, or use a big bank or a discount broker. Your application enters the same lottery pool as everyone else's.

So, when looking for the best broker for IPOs, you should choose one with an easy-to-use application process, not one that claims it can get you more shares.

How You Can Possibly Improve Your Chances of Getting IPO Shares

While you can't guarantee you'll get IPO shares, some common tips may raise your chances. This isn't about finding secret tricks, but about knowing the rules and applying in a smart way.

1. Apply Using Different Demat Accounts

This is one of the best ways to improve your chances. SEBI rules say you can only send one application per person, which is linked to your unique Permanent Account Number (PAN). If you send more than one application with the same PAN, they will all be rejected.

However, you are allowed to apply using the separate Demat accounts of your family members (like your spouse, parents, or adult kids). Each person must use their own unique PAN. This puts more applications from your family into the lottery, which raises the chance that at least one of you will get shares.

2. Apply for Just One Lot in a High-Demand IPO

When an IPO has very high demand from regular investors, it's smart to apply for only one lot (the smallest number of shares you can buy). SEBI rules make sure that in a high-demand IPO, every valid application from a regular investor has an equal chance in the lottery. It doesn't matter how many lots you apply for (up to the ₹2 lakh limit). Your chance of getting one lot is the same whether you apply for one or for the maximum amount. Applying for a single lot is a good plan to get shares in a popular IPO.

3. Bid at the Cut-Off Price or the Highest Price

When you apply for an IPO, the company gives you a price range for the shares. To have the best chance, it is a good idea to bid at the "cut-off price." Choosing this option means you agree to buy the shares at the final price the company sets. Most popular IPOs end up being priced at the top of their range, so this makes sure your application is included in the lottery process.

4. Make Sure Your Application Has No Mistakes

Many applications are rejected because of simple mistakes. Before you submit, always double-check your details, like your PAN, Demat account number, and UPI ID. A mistake-free application is a basic step to make sure you are part of the lottery.

5. Don't Wait Until the Last Minute

Applying early doesn't give you a better spot in the lottery, but it helps you avoid website problems that can happen on the last day when many people are applying. Sending in your application on the first or second day helps make sure everything goes through without any stress.

The Main Point

There is no magic trick or special broker that can promise you'll get IPO shares. However, understanding the process and applying smartly can definitely help. The main point to remember is that giving out IPO shares to regular investors is a lottery, which is made to be fair and random.

You should focus on using legal tips, like applying with different Demat accounts from your family and making sure your application is filled out correctly and sent in on time. This method, along with some good luck, is your best chance to get shares in the next big IPO.