A lot of IPO investors focus on subscription numbers, GMP, and listing buzz, but one detail often gets missed: oversubscription does not always mean better allotment chances.
In heavily oversubscribed mainboard IPOs, retail allotment usually works through a computerised lottery. So applying for more lots may block more funds, but it may not improve your chances if the number of applicants is higher than the available lots.
This is especially important to understand before applying for popular IPOs, where demand can run hundreds of times higher than the shares on offer.
A good reminder for investors: look beyond the hype. Check the category-wise subscription, read the RHP, understand the allotment process, and use GMP only as one data point — not the full decision-making basis.
Before applying for an IPO, it helps to understand how allotment actually works, what category-wise subscription means, and why GMP should not be the only factor in your decision.
We’ve explained this in detail here: https://aliceblueonline.com/blog/ipo-oversubscription-allotment-impact