IPO
Become an early investor in reputed companies. Grab on to money making opportunities and enjoy listing gains.
What is an IPO?
An IPO, or Initial Public Offering, is like a company's big debut on the stock market. It is the process through which a privately-held company offers its shares to the public for the first time, allowing it to become a publicly-traded company.
Investing in an IPO allows investors to potentially benefit from the early growth of a company. If the company performs well post-IPO, investors who participated in the IPO may see significant gains as the company's stock price appreciates.
List of Successful IPOs in 2022
| Company Name | Listing Gains |
|---|---|
| Adani Wilmar | 183 |
| Hariom pipe Industries | 137 |
| Venus pipes and tubes | 121 |
| Veranda Learning Solutions | 100 |
| Prudent Corporate Advisory | 60 |
How to invest in an IPO?
Research
Before investing in an IPO, it's essential to research the company's financials, business model, growth prospects, industry trends, and competitive landscape.
Open a Demat Account
To invest in an IPO, you need to have a Demat account.
Apply for the IPO
Once you have identified an IPO you want to invest in and completed your research, you can apply for the IPO through your broker. You will need to provide details such as the number of shares you want to apply for and the price you are willing to pay.
Payment and Allotment
After applying for the IPO, you need to make the payment for the shares you have applied for. The payment can usually be made through net banking or UPI.
Listing and Trading
After the IPO is completed and the shares are allotted, they are listed and start trading on the stock exchange.
Risks associated with IPOs
Uncertain Performance
Newly listed companies may lack a track record of financial performance as a publicly-traded entity.
Underperformance
Despite the hype surrounding some IPOs, not all newly listed companies perform well in the long term.
Limited Information
Investors may have limited information about the company's operations, management team, industry dynamics, and competitive positioning at the time of the IPO.
Investor Sentiment
Investor sentiment can play a significant role in the performance of IPOs. Positive sentiment can drive up the stock price, while negative sentiment can lead to sell-offs and price declines.
Allocation Issues
In some cases, demand for shares in an IPO may exceed the supply of shares available, leading to oversubscription. This can result in allocation issues, with some investors receiving fewer shares than they applied for or not receiving any allocation at all.
Failed IPOs of 2022
| Company Name | Listing Gains |
|---|---|
| AGS Transact Technologies | -58% |
| Life Insurance Corporation of India | -31% |
| Delhivery | -31% |
| Uma Exports | -30% |
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