IPO Multiple Bids is an area of such a big confusion for beginner level investors that they assume they will have a better chance of getting IPO lots if they do so.
No, no, no!
That is not the way it works. If getting an IPO lot was that simple, everyone would have been just playing around with the system.
One of the most prominent IPO related queries investors have is whether they can place Multiple IPO bids, especially if the upcoming IPO is a highly lucrative one. Now, we understand that the retail upper limit of an IPO bid from a single PAN Card (read Demat Account) is ₹2 Lakh.
In case the IPO is highly lucrative in terms of its returns, then without a doubt, it is going to get oversubscribed. This oversubscription, at times, can be 10, 20 times (sometimes even more) the actual number of shares available for bidding.
That is the reason why most of the investors look for situations on how they can apply IPO Multiple Bids so that their chance of getting an allocation increases multifold. In case you apply for IPO Multiple Bids through a single PAN card, then all your applications will be rejected. Yes!
Thus, make sure whatever applications you are putting in, those are not from the same PAN Card (linked to a demat account). Further, to remind you again, do not try to act smart either by opening multiple demat accounts against your name and then applying for the IPO from all those accounts. All such applications will be rejected.
Use the right strategy and invest in the best IPO like the LIC IPO.
In order to increase your chances, you can certainly apply from different demat accounts of your family members.
This is understandable that IPO shares are allocated in form of lots. Thus, in case you apply from let’s say 4 different accounts of your family members, then the chances of getting the allocation of lots increases as well.
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