While IPO participation is at an all-time high, the actual probability of allotments in IPO remains slim for the average investor. By September 2025, 58 mainboard IPOs had been listed during the year, and all of them were oversubscribed, showcasing the intensity of demand. Making it through these steep odds requires more than just capital, it requires a planned approach to how and when you bid.
7 Must-Know Tips to Improve IPO Allotment Odds
Follow these proven ways to improve your chances of receiving an IPO allotment:
- Apply at the Cut-Off Price
One of the simplest yet most impactful strategies is applying at the cut-off price, indicating you agree to pay whatever price the book-building process finalises.
For example, in the Urban Company IPO, which was oversubscribed around 104 times, retail bids at the cut-off remained fully valid while any below-cut bids risked invalidation. Applying at cut-off ensures:
- Your application remains valid regardless of where the price is set.
- You stay eligible for allotment even in aggressively priced issues.
- It avoids disqualification due to bidding below the final price.
Since final allotment is based on demand, not bid price (once at cut-off), this keeps your application in play.
- Submit Only One Application Per PAN
SEBI mandates that each investor can submit only one IPO application per PAN. Multiple applications under the same PAN even through different platforms are rejected outright, cancelling your chance of allotment. To protect your allotment chances:
- Use just one application per PAN.
- Ensure bank and demat details match exactly.
- Avoid using the same PAN across multiple broker platforms.
An application with a PAN conflict is automatically disqualified, effectively reducing your probability to zero.
- Consider Multiple Eligible PANs in Your Family
A commonly used strategy among investors is applying through separate PANs within the same family for example, spouse, parents,etc. as each PAN is treated as a unique investor.
While this does not change the overall number of shares available, it increases the number of entries you hold in the allotment scheme (especially in lottery-driven allotments). Just ensure every application is legitimate and backed by genuine demat accounts.
- Apply for the Maximum Permissible Retail Amount
In many oversubscribed IPOs, allotments are made either proportionately or via a lottery. In pure lottery scenarios, applicants generally receive one lot or nothing regardless of how many lots they applied for.
However, proportionate allotment is more common when oversubscription levels are moderate. In such cases, applying for the maximum retail amount (₹2 lakh) can increase the chances of receiving a larger share allocation if selected, compared to smaller applications.
For example, in IPOs where retail subscription is strong but not extreme:
- Applicants who bid for smaller numbers may receive only one lot.
- Those applying closer to the maximum limit can be allocated their full share.
This does not necessarily increase the number of chances but improves share quantity once selected.
- Ensure Technical Accuracy and Timely Mandate Approval
Operational errors are a frequent but avoidable cause of application rejection. The most common issues include:
- Insufficient funds in the linked bank account.
- Unified Payments Interface (UPI) or Self-Certified Syndicate Bank Account (SIPA) mandates rejection or delay.
- Incorrect demat or bank details.
In oversubscribed IPOs, even valid applications can be excluded for technical reasons, so it is important to:
- Maintain ample balance before applying.
- Approve the UPI mandate immediately.
- Cross-check all personal and account information before submission.
- Keep an Eye on Subscription Levels Before the Final Day
Live subscription figures are updated daily during the IPO bidding period. Early indications of extreme oversubscription can inform whether it is worth participating at all or whether to temper expectations.
In 2025, while headline fundraising volumes were high, retail subscription dipped compared to prior years, with some reports showing average retail subscriptions around 26.42 times in certain periods.
If an IPO shows extreme oversubscription early on, it signals that IPO allotment odds will be correspondingly lower. Investors can use this insight to decide whether to participate or prioritise issues with more balanced demand.
- Understand Category-Wise Allocation Rules
IPO allotment in India is done on category basis (Qualified Institutional Buyers, HNIs, and Retail). Retail investors compete only within the retail category, irrespective of how crowded the overall IPO is.
So even if an IPO sees stronger institutional oversubscription, retail allotment will depend mainly on retail demand relative to the reserved quota. This means that category-specific oversubscription data (especially for retail bids) is more relevant to your allotment odds than overall figures.
Conclusion
IPO allotment has increasingly become a function of participation intensity rather than individual preference. With oversubscription now a common feature, allotment outcomes are largely influenced by how demand is distributed across investor categories. Viewing IPO applications through a probability-based lens helps investors set realistic expectations and better interpret results, regardless of whether an allotment is received. Financial marketplaces like Bajaj Markets offer comprehensive IPO trackers and real-time subscription data, helping investors plan their applications and handle the IPO process more effectively in a competitive space.
