Why big IPOs are easier to get
When a very large company goes public, people often assume the allotment will be impossible. Usually the opposite is true: big issues tend to give retail applicants better odds than small, hot SME issues.
More lots on offer
Retail allotment is decided by the number of lots on offer against the number of applications. A big issue has many more retail lots, so even with heavy demand the retail portion is often subscribed only a few times, while small issues can be subscribed hundreds of times.
Working out your odds
If the retail portion is subscribed X times, roughly 1 in X retail applications gets a lot. A retail figure of 3 times means about a one-in-three chance per application. IPO Khata shows this estimate on every IPO's subscription page.
What to check
Big IPOs are often mostly an offer for sale, with existing shareholders selling. Read the objects of the issue, the valuation against listed peers, and the risk factors in the RHP. A better chance of allotment is not a reason to apply by itself.
Family applications
Each adult family member applying with their own PAN is a separate entry in the draw, which matters most in big issues where the odds per application are reasonable.
Related guides
- How IPO allotment works
- What is IPO subscription (times subscribed)?
- Can family members apply for the same IPO separately?
More on subscription, allotment and refunds
- How to check IPO allotment status
- IPO money still blocked? What to do
- How to improve your chances of an IPO allotment
- Why IPO applications get rejected
- What happens when an IPO is undersubscribed
- IPO shares not showing in your demat account
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Information, not investment advice. GMP is an unofficial grey-market indicator; figures come from public sources (InvestorGain) and may be late or wrong. Not registered with or affiliated to SEBI, the exchanges, the registrars or InvestorGain.