One Demat vs Multiple Demat – Which is Better for IPO Allotment?

Introduction

Have you ever applied for an IPO, waited eagerly for the allotment, and then… nothing? No shares, no profits, just disappointment. If IPO allotment had a theme song, it would be “Better Luck Next Time.”

This frustration hits almost every investor, especially when IPOs receive too many applications. Some believe that using multiple Demat accounts increases their chances. They assume that more applications mean better odds. But does this trick actually work, or does it just create extra paperwork?

In this blog, we’ll break it down:

• How IPO allotment actually works (no, it’s not rigged)
• Whether one Demat account is enough or if multiple accounts give an advantage
• What SEBI says about this strategy
• The best way to increase your chances of getting an IPO allotment

By the end, you’ll know whether to stick with one account or go big with multiple ones. Either way, at least you’ll have a clear strategy instead of just hoping for the best.

How IPO Allotment Works

If you’ve ever applied for an IPO and waited eagerly for the results, you know the drill. You check your status, refresh the page a hundred times, and then… nothing. No shares. Just heartbreak. But is it just bad luck, or is there a way to crack the system? Let’s break it down.

1️⃣ The Lottery System – It’s All About the Draw 🎟️

For retail investors (like most of us), IPO allotment works on a lottery system. SEBI ensures that every applicant has an equal chance, no matter which broker they use or how early they apply.

• A company issues 10 lakh shares but receives 20 lakh applications? Only half of the applicants will get shares.
• The selection process? Pure luck. No VIP treatment, no shortcuts.

2️⃣ Oversubscription – The Real Problem 🚀

Most IPOs today get way more applicants than available shares. This makes getting an allotment even tougher.

• Apply for 1 lot? Your name goes into the lucky draw once.
• Apply for multiple lots? Doesn’t help. You’ll still get only one lot if selected.
• Unlucky? No shares, no profits—try again next time.

Example: If an IPO is 10x oversubscribed, only 1 in 10 investors will get an allotment. If it’s 100x oversubscribed, well… your chances are about the same as winning a game of musical chairs against Usain Bolt.

3️⃣ One PAN, One Application – No Tricks Allowed

Each IPO application links directly to a PAN number. Try applying multiple times using the same PAN? SEBI rejects all of them.

Some investors think applying from different accounts will increase their chances. But SEBI’s rule is clear—one PAN, one valid application. No loopholes, no extra chances.

Key Takeaway

IPO allotment works like a lottery. Applying for more shares doesn’t help, but smart strategies might. Let’s look at whether one Demat account is enough or if multiple accounts give an edge.

How to Increase Your IPO Allotment Chances (Legally!)

Getting an IPO allotment often feels like winning a lottery. But some smart moves can improve your chances. Let’s take a simple example to understand how.

A Simple Example: Raj vs. Ankit

Raj and Ankit both want shares in a popular IPO.

• Raj applies using just one Demat account.
• Ankit applies using three Demat accounts—one for himself, one for his wife, and one for his father.

On the allotment day:

• Raj gets no shares.
• Ankit gets one lot in one of the three accounts.

What made the difference? More applications = More chances in the IPO lottery.

Simple Strategies to Improve IPO Allotment Chances

1. Use Multiple Demat Accounts – More accounts mean more entries in the lottery. You can apply through family members’ accounts (with different PANs).
   
2. Apply for One Lot Per Account – SEBI’s system gives every retail investor an equal chance. Whether you apply for one lot or ten, your chances are the same. Instead of applying for more lots in one account, apply through multiple accounts.
   
3. Use UPI Instead of Bank ASBA – UPI transactions are faster and reduce the risk of application failure.
   
4. Apply Early, Not at the Last Minute – Broker apps can crash on the last day due to heavy traffic. Applying early helps avoid this issue.
   
5. Choose a Reliable Broker – Some brokers face technical issues during IPOs. A good broker ensures your application goes through smoothly.

Quick Comparison Table

Strategy	Why It Helps
Apply Through Multiple Demat Accounts	More applications increase chances
Apply for One Lot Only	SEBI’s lottery system treats all small investors equally
Use UPI for Payments	Faster and fewer chances of failure
Apply Early	Avoids last-minute technical issues
Use a Reliable Broker	Prevents application failures

Final Takeaway

Winning an IPO allotment isn’t about luck alone. A few smart decisions—using multiple Demat accounts, applying early, and choosing the right payment method—can increase your chances.

One Demat vs. Multiple Demat – Which One is Better?

Now that we know applying through multiple Demat accounts can improve IPO allotment chances, let’s compare one Demat vs. multiple Demat accounts in a simple way.

Quick Comparison

Factor	One Demat Account	Multiple Demat Accounts
Ease of Use	Very easy	Little Hard to manage
IPO Chances	Low	Higher
SEBI Rules	Fully compliant	Allowed if PAN is different
Costs	Low fees	Higher fees but you can smartly skip it by open account Here.
Trading Backup	No backup	Can use another broker
Tax Filing	Simple	More complex only for taxpayer

When Should You Stick to One Demat Account?

• If you don’t want extra paperwork or tracking multiple accounts.
• If you apply for IPOs occasionally and are okay with lower chances.
• If you want to avoid extra maintenance charges from multiple brokers.

When Should You Use Multiple Demat Accounts?

• If IPO allotment is your priority, applying through family accounts increases chances.
• If you apply for IPOs frequently and want better odds.
• If you have family members willing to open accounts (with different PANs).

Final Takeaway

A single Demat account is simple and easy to manage but limits IPO chances. Multiple accounts increase the probability of allotment but come with extra effort. Choose based on your investment style.

Things to Keep in Mind While Using Multiple Demat Accounts for IPOs

Using multiple Demat accounts can increase IPO allotment chances, but there are some important things to keep in mind. Ignoring these can lead to rejected applications or unnecessary costs.

1️⃣ Each Account Must Have a Different PAN

• SEBI allows only one IPO application per PAN.
• If you submit multiple applications from the same PAN, all will be rejected.
• To apply through family members, ensure each has a unique PAN-linked Demat account.

📌 Example:
Rahul applies for an IPO using two accounts, both linked to his PAN. Result? Both applications are rejected. Instead, if he applies through his wife’s and father’s accounts (different PANs), he gets two valid entries.

2️⃣ Managing Multiple Accounts Can Be Tricky

• More accounts = More tracking 📊.
• You need to remember login details, monitor balances, and manage UPI mandates for each account.
• Missing a payment authorization on any account cancels the IPO application.

💡 Tip: Use a spreadsheet or a notes app to track IPO applications across accounts.

3️⃣ Extra Maintenance Charges May Apply

• Many brokers charge Annual Maintenance Charges (AMC) for each Demat account.
• If you open multiple accounts without checking fees, you might end up paying ₹300–₹500 per account yearly.
• Free Demat accounts exist, but some have hidden charges, so always read the fine print.

📌 Example:
Amit opens four Demat accounts without checking AMC. Later, he realizes each account costs ₹400 per year. Total extra cost? ₹1,600 per year! That’s money that could have been invested instead.

💡 How to Avoid AMC?
If you want to apply through multiple accounts but don’t want to pay unnecessary AMC, consider opening a free Demat account with Angel One. They offer zero AMC on certain plans, helping you save costs while increasing IPO allotment chances.

🔗 Open a free Angel One Demat account today and maximize your IPO strategy without extra charges!

4️⃣ Bank Accounts Must Match Demat Account Holders

• The bank account used for an IPO must belong to the same person as the Demat account.
• You can’t pay for a family member’s IPO application using your own bank account.

💡 Solution: Ensure family members have their own bank accounts linked to their Demat accounts.

Final Takeaway

Using multiple Demat accounts increases your IPO chances, but only if managed correctly. Keep track of applications, check for hidden fees, and ensure bank accounts match to avoid rejections.

Final Verdict – Multiple Demat Accounts Win!

If your goal is better IPO allotment chances, then using multiple Demat accounts is the way to go.

A single Demat account limits you to one lottery entry, making it much harder to get shares, especially in oversubscribed IPOs. On the other hand, applying through multiple accounts (with different PANs) increases your number of entries, improving your chances.

Why Multiple Demat Accounts Are Better for IPOs

✔ Higher chances of allotment – More applications mean more chances to win the IPO lottery.
✔ No extra investment required – You still apply for just one lot per account, as per SEBI rules.
✔ A legal way to boost allotment – As long as each account has a different PAN, it’s completely allowed.

But What About Extra Costs?

Some brokers charge AMC fees for maintaining multiple accounts. But you can avoid this by choosing a broker that offers Special zero AMC accounts only through this Link.

🔗 Open a free Angel One Demat account and increase your IPO allotment chances without extra costs!

Final Takeaway

If you want more IPO allotments, using multiple Demat accounts is the best strategy. Just make sure each account has a unique PAN and is managed properly.

FAQs – One Demat vs. Multiple Demat for IPO Allotment

1️⃣ Can I apply for the same IPO from multiple accounts?

Yes, but only if each Demat account is linked to a different PAN. If you apply multiple times using the same PAN, all applications will be rejected.

2️⃣ Will multiple Demat accounts guarantee an IPO allotment?

No, IPO allotment is still based on a lottery system. However, using multiple accounts increases your chances since each account gets a separate lottery entry.

3️⃣ Does applying for more lots in a single application improve my chances?

No, retail investors get allotment on a per PAN basis, not based on the number of lots applied. If the IPO is oversubscribed, you will get only one lot if selected.

4️⃣ Are there any charges for maintaining multiple Demat accounts?

Some brokers charge Annual Maintenance Charges (AMC), which can add up if you have multiple accounts. To avoid this, consider zero AMC brokers like Angel One.

🔗 Open a free Angel One Demat account here and save on AMC fees.

5️⃣ Can I use my bank account to fund IPO applications from my family members’ accounts?

No, SEBI requires that the bank account and Demat account must belong to the same person. Each applicant needs their own linked bank account.

6️⃣ Is it legal to use multiple Demat accounts for IPO applications?

Yes, as long as each account is linked to a unique PAN, it is completely legal. Many investors apply through family members’ accounts to increase their chances.

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