I am not interested in any IPO at present per se. But interested for any opportunity. As you can see, many SME IPOs are now akin to lotteries. In fact almost every week I find companies are being listed more than double the issue price. Taking the lot size into consideration, it amounts to almost 1 lac gain for lucky ones. In some cases I have observed profit of more than 2.5 lacs. So you can understand the opportunities here and that is the reason we are having more than 1000 times subscription in some cases .
Returns depends upon the amount one has to keep in cash to get the allocation. Retail portion is based on lottery and is not scalable. There is very low chance of allocation as people are applying from multiple accounts also. Once a while one can get lucky but no strategy can be made out of it due lack of scale.
The hni quota is based on the proportion to the amount applied for. So people are applying in higher quantities to get confirmed allocation. One strategy used is to apply in higher quantities and keep rotating with higher quantities to scale.
Another problem is that IPOs work best in bull market. One can easily use the money kept for IPO in secondary market and get better returns.
Strategy of buying on listing date and holding for long term can be used on poor listing with undervaluation. In most cases there is nothing left for investors after listing gain.
@Yogesh_s what are your thoughts on Capacite infra now? Do you see value?
don’t know where you are getting the data from
Allocation is based on lottery and not on ticket size; most people get the minimum lot if oversubbed
they go by PAN card, so multiple accounts dont matter
Read basis of allotment of any SME IPO.
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https://x.com/ipo_mantra/status/1755078221614248257?s=20
Quote:
"2 points to note here to get HNI Allotment in SME IPOs:
- HNI Allotment is proportionate.
- You need to apply equal to or more than HNI Subscription to get confirm allotment.
Example:
If HNI subscription is 40x then apply at least 40 lots to get confirm allotment
If HNI subscription is 150x then apply at least 150 lots to get confirm allotment
If HNI subscription is 470x then apply at least 470 lots to get confirm allotment
And So On …"
Huge amount is required for confirmed allocation. It would be better utilised in secondary market.
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Hello sir ,
I have few questions regarding the lot size you have mentioned . Yes what you have mentioned in here about subscription rate and chances of allotment makes sense .
However , If I calculate , most of the IPO applicants are using IPO financing as a tool to apply , which also has a limit of 1crore as maximum lending option per individual . So for SME IPO person A can apply maximum of 70-80 lots if he is using IPO loan facility which might be less number for IPO with HNI subscription of 100 times or more .
Now if you say , an Individual B may have 6 crores for the required amount where IPO is 400times subscribed in HNI category , will he really apply that much amount for an IPO.??
I hope you are getting my point . please revert back if I am wrong somewhere in calculations.
Yes some people are actually applying in crores for SME IPO. You can check basis of allotment document of any highly subsidised ones. In retail also, people are applying from multiple accounts of relatives for higher probability of allocation. Whole SME market is running on sentiments now. Some people are doing IPO investing only.
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Yes , you are absolutely right .
Hi, any further thoughts on Deem Roll Tech on entering now?
Can anyone confirm getting allotment in good SME IPO issues ? Because I am convinced that some kind of scam is going on in the allotment process. Me, my family members and friends are participating in most IPO issues during last one year, with minimum application amount under retail category. Total applications are more than 200 during last one year, including good mainboard issues. But I am yet to get a single allotment. There is no transparency in allotment process. We are also in the dark if SEBI representatives supervise this.
So I am convinced that whole process is rigged. Want to take up with SEBI. Any suggestions?
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I have had luck with few main board IPOs.
The process of allotment is allegedly lottery based.
However all the time when I got allotment, I applied on day 1 first thing in the morning using ASBA from a bank account.
Thanks a lot for your information.
Prabhat
Family member got allotment in KP Green Engineering Ltd due to large size of IPO. Otherwise it is very difficult to get allotment due to the small size of IPO and large subscription.
For example, in Winsol Engineers for 10 lakh offered shares in retail, 80 crore shares were bid for ie 780 times oversubscription. That too in lots, so there is very low chances of getting allotment in retail.
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Yes, I know the oversubscription status and difficulty in getting allotment. And I don’t consider KP engg as a good issue.
My point is I am yet to come across any one who got allotment in a good issue like Winsol. Because listing gain in this case is more than 4 lac. So it is sufficient to induce people to adopt unfair means. And that is the reason why I apprehend a scam. I am yet to get confirmation that allotment process is fullproof from any misdoings.
And I know that oversubscription is sometimes more than 700 times. But still in the smallest issue 500/600 retail investors are getting allotment.
So can we take up with SEBI to make allotment process fullproof ? I am writing this because Individual complaint to SEBI may not yield desired result.
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Even I feel the same but how to take up this to SEBI and what SEBI can do on this will they share the allotment list to public? I was just curious on this…
which bank? I not got a single allotment from past 6 IPO’s I applied just wanted to try in you way 
I am a normal retail investor. Me too got lucky many times. I don’t follow any rule to apply and most of the time I apply at the last hour. I use ICICI direct and family accounts are with HDFC and Kotak.
Latest Go digit IPO too got an allotment.
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I use Yes Bank. I don’t know if Bank will make a difference.
The last IPO I looked fwd, applied on day 1 and got was Tata technologies. Applied in both retail and shareholder quota. Got allotted in retail category not in shareholder quota.
My broker insisted that we apply for Winsol Engineers sme IPO since GMP was huge. Saw his message on last day, applied and didn’t get lucky.
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Thanks for the Info 
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