Just one question that I have, Knowing that an issue will be oversubscribed and you are going to get minimum allotment, is it ok to apply in minimum lot category always??
Just one question that I have, Knowing that the issue will be oversubscribed and you are going to get minimum allotment, is it ok to apply in minimum lot category always ?
Have a question: Knowing that an issue is going to be oversubscribed many times and you are going to get minimum allotment, is it ok to apply in minimum lot category?? I saw that all categories get allotment in same ratio.
10. CLD| Link| Bookmark|
September 10, 2014 1:22:22 PM
Top Contributor (500+ Posts, 100+ Likes)
By now every wise investor is knowing that if the retail subscription is more than total share allocation, then each eligible applicant is going to get maximum one lot. However it is seen that some retail investors still subscribe for a large number of shares hoping that by doing so they may get preference. Some even subscribe for maximum limits. It is clear that such people either do not know the new rules or are just hoping against no hopes. Besides they are losing interest on such amounts.
Advice: Please do not apply for more than one lot if you find good subscription response. You are not going to get more than one lot in any case irrespective of your subscription.
Caution: In an issue if you find less subscription, do not get tempted to apply for more share lots. You may get full allotments even for Rs. 2 lakh subscription but then you know the fate of such company shares on listing & there after. Such shares are normally not worth the price these have been floated & trade in loss to IPO price.
Fair comment - I agree there is no point in blocking maximum amount when the chances to get allotment is same as if you apply for one lot (e.g. for Snowman and I''m sure for Shemaroo also.
But my understanding is that if you apply using ASBA then you will be still getting the interest on the blocked amount (4% saving interest) .. isn''t it so?
What you say holds true for the few goods issues in the very recent past. However, I decide whether to apply or not based on the company''s fundamentals, irrespective of whether others are applying for it or not. So basically, I subscribe for large lot sizes, and hope that people undersubscribe, and I get more allotment.
The thing about recent good public issues has been that they''ve been small. If you go back 18 months, there''ve been good large issues where it has made sense to bid for more than one lot. Such issues include Engineers India FPO, Power Grid FPO, Repco Home finance, PC Jewellers,
Thanks CLD ..but in near past i havent been allocated so,i thought that been happend becaof one lot application.. so, i guess there must be no particular way to hit the lot..unless ur superlucky:)