Buying shares in an IPO is exciting. It can be a good way to grow your money. But many people have trouble getting the shares. Popular IPOs go fast. Even if you have tried before, you may not get any shares.
The good news is that you can increase your chances with this if you follow some easy and proven steps. In this guide, we will talk about the top 5 investment rules for IPO. We make it simple to read, with tips that anyone can use. It does not matter if you are new or have some practice.
1. Apply in the Retail Category Wisely – One of the Top 5 Investment Rules
In India, most IPOs set aside 35% of their shares for retail investors. If you apply for shares in this group, your chance to get shares will be higher than for people in other groups, like non-institutional or QIB.
Tips:
- Go for the minimum lot size first. In IPOs where there are more people who want shares than the number of shares available, who gets shares is decided by how many they ask for. If you ask for fewer shares, you have a better chance to get some shares.
- Do not send in more than one application with the same PAN. If you do this, you might be left out.
- For example, if a retail IPO lot size is 100 shares and you go for only 1 or 2 lots instead of 5 to 10, you have a higher chance to get at least one lot.
2. Use Multiple Demat Accounts Legally – A Key Investment Rule
If your family has more than one Demat account, each person can use their own account to apply for the same IPO. This can help you and your family get a better shot. There is a chance that at least one account will get shares.
Key Rules:
- You can only use the accounts from your close family, like your spouse, kids, or parents.
- Make sure every account has KYC done and is linked to a working bank account.
- For example, if your parents and spouse each get one lot in an IPO, you have more chances than if you just use one account.
3. Use ASBA or UPI for Smooth Processing
You have to use the Application Supported by Blocked Amount (ASBA). Or you can use the UPI payment method when you want to apply for an IPO.
Why it matters:
- The money you have stays in the bank. It does not go out until you get shares.
- You get your money back at once if you do not get shares.
- This way has less mistakes than when you use net banking or cheques.
Pro Tip: You should check your UPI ID or ASBA details two times. This lets your form be correct. A small error can keep your form from being accepted.
4. Apply at the Right Time Top 5 Investment Rules
Sometimes, timing changes how things happen. You can see this in IPOs when many people want to buy shares.
Best Practices:
- Send in your application during the first two or three days when the IPO starts.
- Do not wait until the last minute to apply. A lot of people go on the trading websites at that time, and there can be delays.
- If you apply early, your application will usually be handled quicker. You can get a good chance to get shares if not many people are looking for them in this IPO.
Example: In the Canara HSBC Life IPO 2025, people who put in their application early did not have to wait a long time. Each one got their amount sorted out with no problem at all.
5. Check Eligibility and Documentation Carefully
Many applications do not get approved. This could be because the paperwork is not complete. There can also be mistakes in some details.
Checklist Before Applying: Top 5 Investment Rules
- The PAN needs to be the same as what is on your Demat.
- Your bank must work right. It should be joined with ASBA or UPI.
- Your KYC must be current.
- You have to put in the right details and sign the form.
Even a small mistake can make your whole application not count, so check everything two times.
Bonus Tip: Diversify Across Multiple IPOs
Diversifying across multiple IPOs is an additional strategy, complementing the Top 5 Investment Rules for maximum allotment chances
Conclusion
By following these Top 5 Investment Rules, investors can significantly increase their probability of securing shares in any IPO
- Be sure to apply in the retail group. Take your time and pay attention when you do this.
- You can use more than one family Demat account. Just make sure you do it the right way.
- Apply through ASBA or UPI. This can help you get fast and easy steps done.
- Send your forms early in the IPO period. Do not wait too long.
- Check who can apply and go over your papers carefully.
If you use these tips, you can have a better chance to get IPO shares. You will feel good and feel sure about your investing in the fast-growing stock market in India.
Remember, you need to be patient and pay attention to the small details. If you do each step right, you will have more chances to get good results.
Frequently Asked Questions (FAQ) – Top 5 IPO Investment Rules 2025
1. Can following these rules guarantee IPO allotment?
These Top 5 Investment Rules are designed to help both new and experienced investors navigate IPO allotments successfully No plan can make sure you will get every share you want. A lot of the popular IPOs get many people who want the shares. There are not enough shares for all of them. Still, if you follow these steps, you will have a better chance to get some shares.
2. What is the minimum investment in an IPO?
The least money you need to put in will depend on how many shares are in one lot and the price range of the IPO. Most people will spend around ₹14,000 to ₹15,000 to buy one lot. If you want more info, read the IPO details.
3. Can I use multiple Demat accounts for IPO applications?
Yes, you can have more than one family Demat account in your name. You can use the account of your husband, your wife, your kids, or your parents. This gives you a better chance. Do not use fake accounts. If you do, you may be kicked out.
4. Is it better to apply early or later during the IPO period?
It is a good idea to apply early in the IPO time. This can help you avoid problems with the system. The process will go smoother, and you feel better about it. You might not always get shares if you apply early, but there is less chance for mistakes in your application.
5. What is ASBA, and why is it important?
ASBA (Application Supported by Blocked Amount) holds your money in the bank until you get a share. It helps keep your money safe. If something goes wrong or you do not get a share, your money will go back into the bank. Most IPOs want you to use ASBA.
6. Can I apply for multiple IPOs simultaneously?
Yes. If you go for more than one IPO at once, the risk will not be all in one place. This can help you get at least one IPO. The chance to get one is higher if you have more tries in the same time.
7. What happens if my IPO application is rejected?
If the request is not taken, the money that ASBA or UPI has will go back to your bank. You usually get it in one or two working days.
8. Do retail investors have a higher chance of allotment than institutional investors?
Retail investors get 35% of the shares set aside for them. If an IPO is popular, people who want a few shares will have a better shot to get picked. Bigger companies that ask for lots of shares may not get a spot as often.
Check our full guide on How to Apply for Canara HSBC Life IPO 2025 https://nayakgrowth.com/canara-hsbc-life-ipo-2025-details-guide/