always apply one lakh amount ...you will get high probability of allotment...this is blind formula ..even if u apply last of hour of closing.
no need to go for all those things which will put you in troubles ..small quantity is of less probability of allotment.
regards
suba
Sorry to interrupt, it doesn't work like that.
My brother used work for Karvy consultancy, who are bigggest IPO Consultancy services, so i have little knowledge from him.
Rule 1.The issuing company can only define the strategy, about percentage allocations to FII,II,Q1B,HNI,Retail,Employees,Existing Share Holders.
Rule 2.The Issuing company has NO CONTROL over actual allotment,they are obligated to hire Consultacies, like Karvy,KPMG,ABN, SBI etc.
Rule 3.Every company has their own strategies for allocation
for example
a)Company A can say to their Lead Issue Manager,we want to allocate guaranteed shares to FII and Mutual Funds and all other caterogies are Lottery.
b)Company B can say, we want every application that received should get atlest one share in Retail,HNI category
c)Company C can say, existing Share Holders will get definite allotment for the equal no.of shares that they already have.
d)Company D can say Employees has a reserve of 5%.
Let me some real examples.
My father and I applied for NTPC shares, I applied for 2000 shares, but he applied for 200 shares.
So the allotment was like this.
i).FII - total 10% shares - if 10 FIIs apply, each FII will get 1%of shares
ii)Q1B - Total 10%shares - if 100 Q1Bs apply - eac Q1B get 0.5 % of shares
iii)MFs- Total 50% shares - if 5 Mfs apply - each will get 10% of shares
iv)HNIs-Total 10% shares, again divide HNIs in to 10 categories,
1)those applied for 1000 to 2000 shares
2)those applied for 2001 to 5000 shares
3) those applies for 5001 to 10000 shares and so on
so NOW each category are allocated 1% of shares, that mean if there are 100 applications in category (1) 1% of shares are divided by 100.
v)Retail investors - Total 10% shares
Further retails investors are categorised into
1)those applied for less than 100 shares
2)those applied for 101 to 200 shares
3)those applied for 201 to 300 shares
The TRICK here is, since there were more no. of applications in Retail category, they have gone for application lottery. that means 1:5 (one in every 5 application is only choosen) for less than 100 shares
1:10 was choosen for 101 to 200 shares.
Simply telling, I got 168 shares though I applied for 2000 shares, because they were divided among my group/category
My father go 168 share thouhg he applied for 200 shares, because he was choosen by the lottery.
My friend got 100 for 100 he applied
This is a very very big process and extremely confusing especially with big IPOs.
It happened completely differently with Punjab Bank, my father got 61 shares for 100 applied, I got ZERO for 2000 applied.(because they went for lottery in my category also)
In a NUT shell there is NO guaranteed way.Just try your luck, imagine if reliance energy is coming, how lucky the allottees?
