Looking for a way to invest in a promising company on the ground level? Start by investing in their IPOs (Initial Public Offerings), which offers an exciting opportunity for investors to invest in new companies. But IPO allotment is not as easy as it sounds. From oversubscription to allotment delays, it offers many challenges.
Fortunately, with digitalisation, IPO apps offer ways to overcome these challenges, simplify the process, increase the chances of IPO allotment, and encourage even beginners to start their investment journey. Let’s take a closer look at the challenges and how digital platforms can help to overcome them.
What is IPO Allotment?
While an IPO refers to when a private company decides to go public and sell its shares for the first time, an IPO allotment is the process of distributing shares to applicants. In an allotment, officials evaluate the process depending on factors like investor category and subscription level.
Understanding the Common Challenges in IPO Allotment
Sometimes, IPO applications can be complex and highly competitive. Following are some of the common challenges faced by investors when applying for an IPO:
- Oversubscription: When demand for popular IPOs is high, applications often oversubscribe. When the number of applicants exceeds the shares available, lottery systems usually determine allotments, leading to the loss of shares by some applicants.
- Time Constraints: IPOs mostly have tight deadlines, making it confusing for first-timers to complete the complex application and get an allotment. Common mistakes include incorrect or missing information, incorrect bid amounts or submitting last-minute applications. Learn more about the IPOs and their allotment process from a trusted IPO app and then proceed.
- Technical Glitches: Over demand for shares and last-minute submissions can cause you to lose your allotments due to potential technical issues with the portals.
- Multiple Bids: If an investor submits multiple bids from the same PAN number, the allotment may be rejected.
- Delayed Funds: Sometimes, refunds after application rejection can be delayed. Bidding in multiple IPOs also makes it hectic to track everything at once and disrupts investment goals.
How IPO Apps Can Help Overcome The Challenges?
To overcome the above-mentioned challenges, investors must use IPO apps and here’s why:
- Simple Process: With a user-friendly interface and expert guidance, investors can easily navigate through and proceed with the application process seamlessly in time.
- Allotment Updates: Apps provide real-time updates on subscription rates and numbers, helping investors adjust their bids and make decisions quickly.
- Refund Management: Investors who didn’t get the allotments don’t have to worry about refund delays as apps automatically initiate the refund process and ensure the investors’ funds are returned as quickly as possible.
- Other Investment Options: Trusted platforms like Bajaj Finserv allow investors to create a diversified portfolio and invest in several other assets, such as MF online, helping them track and manage their investments in one place.
- Resources: Apps come equipped with various learning materials, helping beginners to learn about IPOs and other assets and get the necessary insights before investing.
Choosing the Right IPO App
Investors must select an app that offers a straightforward process for smooth application. Here are some features to check out:
- The platforms must have an easy-to-use interface, making the navigation simple for experienced as well as beginner users.
- The app must allow users to invest in various assets, helping them diversify their portfolio in one platform.
- Look for features such as real-time updates and track your progress and investments.
- Ensure the platform is trusted and has security features, such as encryption and multi-factor authentication, to keep personal and financial information safe.
Conclusion
Besides numerous challenges, investors can make the most of their investments with successful applications by using online apps. Reliable IPO apps like Bajaj Finserv promise a seamless and affordable investing experience with zero-cost account opening, budget-friendly subscriptions, lower brokerage fees, and a user-friendly interface.
Whether you want to invest in an IPO, mutual fund or even both, look for a platform that offers the above-mentioned features and makes your investment journey smooth and stress-free.
