While people are thinking about whether to subscribe to Zomato IPO or not, what caught my attention is Paytm money launching Pre-booking of IPO. Now that’s great marketing. Why?
Even if you Pre-book, your order would be passed on only when the subscription opens on the due date.
Pre-booking doesn’t guarantee you getting lucky. It’s not like Pre-booking of a movie ticket where seats are confirmed. IPO is a lottery system. Allotment depends on luck.
The demand in the Pre-booking would cater to the grey market price movement.
off course this is marketing funda to catch retailers.
but i don’t think that the allotment is based on lottery system.
As per my experience & assumption, you don’t get allotted if applied for 1-4 lots. But applied for more lots then there are chances to get allotted, in past, me & my friend applied for some IPOs, i has applied with one lot at sharp opening time & my friend applied after noon with big lots, & he got one lot, but i didn’t got any allotments. & this happened atleast 5-6 times before 2014, later i didn’t tried in IPOs as IPOs aren’t my crush from there.
Rules before 2014 was different.
But now, for oversubscribed IPOs, regardless of you apply 1 lot or multiple lot, allotment chances are same. It is a lottery