Understanding IPO Application Limits and Guidelines

Investing in Initial Public Offerings (IPOs) can be a strategic way to grow your investment portfolio. However, understanding and adhering to the rules and limitations is crucial to avoid any issues during the application process. This article aims to clarify the number of IPO applications that can be made through a single bank account and the related guidelines.

Number of IPO Applications per Bank Account

The allowed number of applications for an Axis Bank Simplified Application Based Auction (ASBA) IPO differs by the bank. For instance, SBI allows a maximum of five (5) applications per bank account, while ICICI Bank and HDFC Bank permit only one (1) application per account. Axis Bank and Kotak Mahindra Bank allow up to three (3) and five (5) applications, respectively, on a per-bank-account basis. Bank Name No. of IPO Applications SBI Bank 5 Kotak Mahindra Bank 5 Axis Bank 3 ICICI Bank 1 HDFC Bank 1

It is important to note that if the bank allows multiple applications, it doesn’t matter whose name these applications are on. They can be from friends, family, or even other individuals' names, as long as the bank account is in their name.

Application Limits per PAN Number

Technically, you can only have one IPO application per person, regardless of which bank account it is filed under. This limit is based on the PAN (Permanent Account Number) associated with the application. If an investor files more than one application with the same PAN number, all applications under that same PAN number will be canceled. Therefore, it is crucial to ensure that each application uses a unique PAN.

Purchasing IPO Lots

In terms of the quantity of IPOs you can purchase, you are not limited by the number of applications you can make through a single bank account. However, the number of lots you can purchase within a specific IPO is capped by the lot size specified by the issuing company or the regulator.

The overall number of lots you can subscribe to depends on the subscription limits set for that particular IPO. If the IPO is oversubscribed, you might only manage to get one lot or none at all, even if you apply in multiple demat accounts with the same PAN. It is advisable to apply through different demat accounts with the same PAN to increase your chances of getting the IPO allotment.

Additional Resources

If you want to stay updated on upcoming IPOs and recent IPO lists, you can refer to reliable sources like IPO Watch 2021 and IPO List. These resources provide detailed information on both mainline and SME IPOs.

Kudos and Final Notes

It is essential to be aware of the application limits and guidelines while investing in IPOs to ensure a smooth and hassle-free process. If you follow the rules diligently, you can leverage the potential of IPOs to maximize your equity investments.