Friends, applying for IPO is like a trend nowadays. Analyzing that trend I am here to tell you the things that should be remembered while applying for IPO. What are the things that you must take care of? What mistakes do you have to avoid while applying for IPO?

Things to be Remembered while Applying IPO in 2021/2022

Many new investors makes mistake so that they fail to get the IPO. They do not care about these mistakes and repeat them repeatedly. We get news that the IPO application of many generals gets rejected. They can not go to the final lottery allotment process. It all happens because they make different minor mistakes while applying for the IPO. 

I will mention the precautions and the recovery options that you can use to safeguard your MeroShare account and keep your information secure. As the share market is a mysterious market and we don't even know what happens next, you must keep yourself updated about the various happenings in the market and keep your information safe.

Things to be Remembered while Applying IPO in 2021/2022

I will share the different points that you should remember and keep in your mind before you apply and after you apply to Initial Public Offering - IPO.

Do you get the message that your IPO has been rejected? Does it say you have duplicated the IPO? No worry friends, you won't face these problems if you carefully apply the share market tips and suggestions while applying for IPO.

Don't just limit yourself to 10 units

If you have a good resource for the investment and you are just applying for the 10 units of share then you are doing a great mistake. Get all the data of IPO and think if it is going to be oversubscribed or not. If there is the chance of being over-subscribed then you do not need to apply for more than 10 units. If the total issue for general is in such an amount that satisfies all the Demat holders with a minimum of 10 units of share and remains surplus then you can apply more than 10 units of share.

It's a simple trick that we can use to know how many units of share to apply? When there is the chance of over-subscription then it's not worth applying more than 10 units. Rule of SEBON says allocation must be done at least for 10 shares to a person when we go in lottery system of IPO allocation. You know that IPO allocation is done using a lottery system when IPO is over-subscribed.

You cannot get the full benefit of IPO if you limit yourself to applying just 10 units.

Do not apply an IPO from two different account

There is the provision of allowing a person to create up to two Demat accounts. But that does not mean you are allowed to apply the same IPO from both DP. The main reason for providing the facility of creating two Demat accounts is that if you do not get satisfaction from one DP then you could migrate your shares to another DP. 

But we misuse this and apply the same IPO from both of the accounts. No matter we have a different account, the information in the different accounts matches, and there is the fixed possibility of being rejected on both accounts due to duplication.

You can't hide from the duplication error checking system of CDSC. It detects you in just a minute and your application from both of the DP gets rejected. Hence don't try this. This is called duplication and you can't even hope to get the IPO shares if you dare to duplicate the application.

Don't give your Mero share ID to other

There could be a high tendency of misuse of your account if you give your Demat details or MeroShare details to others. Many brokers are attending in creating different Demat accounts by collecting the required data of general, so that keep your citizenship and other documents securely. If any other open another Demat account using your name then he/she can duplicate your application. This is not an easy thing but it can happen in the share market, we have history too. 

When the IPO results are released, you should not do the mistake to share your MeroShare ID with others because they can misuse it. Many people shares their login ID and the DP details in a hurry of knowing the result.

If you have submitted the application form only one account to an IPO although it shows the error of duplication, it means that someone has created another Demat using your details illegally. You can post a letter mentioning the Demat details in SEBON. This can be resolved to consult with SEBON.

Deposit sufficient balance in your bank account

Do you know a thing? When you apply for an IPO the mero share does not show any insufficient balance error even if you don't have a bit of money in your account. So that you have to check if you have sufficient balance in your account to apply for the desired units of shares. 

When you apply for 20 units of share, in normal it needs 2000 NRS but if you have only 1900 NRS in account and apply for 20 units without checking the balance the MeroShare shows it to be successful but your application gets rejected due to insufficient balance.

Make sure you have sufficient balance before applying for the IPO.

Select the ASBA charge-free bank

Many banks in Nepal do not take ASBA charges but many charges. ASBA (Application Supported by Blocked Amount) is the system of blocking the desired amount in your bank account when you apply for IPO/FPO until it's allotted. 

Many banks charge C-ASBA charges while you apply IPO visiting bank (filling up ASBA form) or through Mero Share. We have to choose the bank which gives free service. Global IME Bank, Mega Bank, NIC Asia Bank, NCC Bank, Sanima Bank, Rastriya Banijaya Bank, and others more provide free C-ASBA services.

Apply for more units if you have capital

Don't hesitate to apply for more units of shares if you have capital. Don't just relay in 10 units. However, we do calculations on how much can be allotted to an applicant but sometimes this minor calculation may fail and we may be deprived of getting more shares. Hence if you have capital don't hesitate to invest more than 10 units when there are possibilities. 

Don't hurry in applying for IPO

Applying for the IPO at the first won't drive you the allotment. When any IPO releases in the market the MeroShare software experience different problems and we can not apply the IPO easily. Keep patience and try applying the IPO at night. Due to the higher active user, the system hangs so that keep patience and try proceeding with your application at night time.

Upcoming IPO to apply