How to Increase Your Chances of IPO Allotment

If you’re looking to secure an allotment in upcoming IPO offerings, here’s what you need to know:

Basic Requirements for IPO Allotment

To increase your chances of getting an allotment, you should own only one share of NTPC. If you don’t already own it, consider buying it in advance. I know someone who has opened eight demat accounts to apply for various IPOs. This strategy allows them to apply for multiple lots, significantly increasing their chances of success. For instance, they can apply for 1 lots across their accounts, which has led to earnings exceeding ₹1 lakh this year alone. They also secured three lots from the Bajaj Housing Finance IPO, netting a profit of around ₹5,000,000.

Strategic Application for IPOs

To replicate this success, it’s essential to apply thoughtfully. Understanding which big IPOs are on the horizon this year can help you prepare effectively, thereby enhancing your chances of allotment. The first major IPO expected is from NTPC Green Energy, which is part of the National Thermal Power Corporation (NTPC) already listed on the market. This IPO is projected to be worth ₹10,000 crore, increasing your chances of allotment. Notably, a shareholder quota is available for existing NTPC shareholders, so owning just one share could help you secure an allotment.

Understanding the NTPC Green Energy IPO

The NTPC Green Energy IPO will raise ₹10,000 crore, with ₹7,500 crore earmarked for repaying NTPC’s loans and the remainder for general corporate purposes. Given that NTPC is a government-owned company with ambitious renewable energy targets, this IPO has strong potential for success. Currently, NTPC operates over 3071 MW of solar projects and 100 MW of wind projects, aiming for 60 GW of renewable energy capacity by 2032.

Expected IPO Dates

While the specific dates for this IPO haven’t been announced, management has indicated a launch before the end of this year, likely in November or December.

The Importance of Multiple Applications

With IPOs often being oversubscribed, your chances of allotment may diminish if you apply from a single demat account. For example, if you apply from four different accounts—one in your name, one in your spouse’s name, and two in your parents’ names—each application counts separately. This increases your chances of receiving an allotment.

If you haven’t yet opened multiple demat accounts, consider doing so. I’ve provided links in the description for opening a free demat account.

Upcoming IPOs to Watch

ONGC Green Energy IPO

Next on the horizon is the ONGC Green Energy IPO. ONGC, India’s largest crude oil and natural gas company, established its subsidiary ONGC Green Energy earlier this year. They’ve made substantial equity investments and aim to generate 10 GW of green energy by 2030. This IPO is not confirmed but has strong potential.

Electric Mobility Limited IPO

Another significant upcoming IPO is from Electric Mobility Limited, projected to come between January and February. The company has sold 53,000 electric vehicles this financial year, with a 69% growth year-on-year. They aim to sell 1 lakh EVs next fiscal year, making this IPO one to watch.

SJVN Green Energy IPO

In the renewable energy sector, SJVN Green Energy is planning an IPO. As a subsidiary of a listed electricity generation company, it might also offer a shareholder quota.

Mukka Systems Limited IPO

Mokk Systems Limited, known for its popular payment app, plans an IPO of ₹700 crore. The company has seen impressive growth and is expected to launch soon.

Hero Fin Corp Limited IPO

Lastly, Ro Fin Corp Limited, a financial arm of RoCup, has announced an IPO of ₹3,668 crore with a fresh issue of ₹2,100 crore. The company’s profits have increased by 32% in 2024.

Conclusion

In conclusion, if you’re keen on participating in upcoming IPOs, ensure you prepare well by staying informed about upcoming offerings and considering multiple demat accounts for applications.

Thank you for reading!