Hyundai, Swiggy set for IPOs: Here’s how to boost your chances in the allotment game

Hyundai, Swiggy IPOs: India is set to witness one of its largest IPOs yet, as Hyundai Motor India plans to debut in October or November. Reports suggest the automaker is eyeing to raise $3 billion, with a potential valuation ranging between $18 billion and $20 billion.

In addition, food delivery giant Swiggy is preparing for its Rs11,000 crore IPO . The company aims to raise Rs 5,000 crore through a fresh issue of shares. The buzz surrounding Swiggy 's IPO has reached new heights, particularly after the massive success of rival Zomato ’s market debut. 

Celebrities like Rahul Dravid, Madhuri Dixit Nene, and Amitabh Bachchan are amongst the high-profile investors who have acquired around 200,000 pre- IPO shares ahead of Swiggy ’s November launch.

The mounting enthusiasm surrounding IPOs, from Hyundai to Swiggy , has both seasoned and novice investors eager to test the waters. 

However, the increasing oversubscription of these IPOs often leaves many empty-handed, with only social media posts left to express their disappointment. Despite the lottery nature of IPO allotments, there are a few key strategies with which investors can secure a spot in the  upcoming major IPOs.

Tips to improve IPO allotment odds

Multiple PAN-linked demat accounts

Investors should consider applying through multiple demat accounts linked to different PANs rather than placing one large application from a single account. Splitting the application across several accounts increases the odds of securing an allotment. 

Notably, each account must be linked to a unique PAN, as multiple applications under the same PAN will be rejected. Many investors use demat accounts of family or friends to enhance their chances.

"Avoid submitting multiple applications using the same PAN-linked demat account, and ensure there is no mismatch between the names on the demat and bank accounts used for the application," said Ravi Singh, SVP - Retail Research at Religare Broking.

Shareholder's quota

Holding shares in the parent company of the IPO can make investors eligible for a reserved allotment. For example, Bajaj Housing Finance reserved 7.62 per cent of its IPO for shareholders of Bajaj Finserv and Bajaj Finance. Similarly, Hero MotoCorp shareholders may have a reserved portion in the upcoming IPO of EV player Ather, one of its key promoters. However, the maximum investment amount in the shareholder category is capped at Rs 2 lakh.

Employee quota

Some companies also offer an employee quota, so investors should check with their employers to see if they are eligible.
Singh also highlighted the importance of adhering to payment protocols to avoid complications during the IPO application process.

"Payments should only be made from the account holder’s bank account, and using UPI IDs of family members should be avoided," Singh added.

Understanding SME IPO allotments

Unlike mainboard IPOs, where allotments are determined through a lottery system, SME IPOs follow a pro-rata basis, except for single-lot retail applications. This difference in allocation methods provides an additional opportunity for investors to consider while building their portfolios through IPOs.