If the IPO company's holding company is already listed, you can keep some of its shares in your demat account. Only one share gives you the opportunity to apply in the shareholder series, which increases your chances of getting the stock. This is a simple method that most people ignore, but it can be beneficial for you.
When a company issues a share, it refers to the price band. Speaking above this price, that is, at a higher price, gives you a priority. Therefore, it is always better to bid at a higher price instead of applying at the lowest price. This increases the value of your application and increases your chances of obtaining shares.
According to SEBI rules, retail investments up to Rs 2 lakh are considered equivalent. This means that a large amount of investment is not beneficial; Instead, it is better to apply at least from different demat accounts in the family. This increases the likelihood of receiving the stock, as applications from different accounts are considered different.
Many people make a bid on the last day, which can be dangerous. Your application may be halted due to technical problems or slow bank servers. Therefore, it is better to apply as soon as possible on the start of the IPO.
When applying for an IPO, use ASBA (application supported by blocked amount), which is available on both bank and brokerage platforms. This application reduces the risk of rejection. Also, fill in the PAN number and bank details properly and keep enough balance in the bank account, as small errors can also lead to your application rejection.
(Note: The information provided here is provided only for the purpose of information, it is important to mention here that the investment in the market is subject to the risks of the market. So always consult an expert before investing.)
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