Investing in IPO - Q & A Forum

Q & A Forum › Category: Stocks/Shares › Investing in IPO

Sathya NA asked 10 years ago

Hi Sreekanth, Recently started following your website for past 3 weeks and it gives much information and also gives feel that we have a right friend to ask any help in Finance and Investment field. I am interested to know about investing in IPO How it will benefit Should we be an short term or long term invested in IPO How and when can we sell IPO shares etc.., Please help. Thank you, Sathya.

5 Answers

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Sreekanth Staff answered 10 years ago

Hi dear Sathya, My standard suggestion would be, instead of starting your investment plan with a financial product, create your investment plan by identifying the goals and time-frame and then opt for investment options. Read: http://www.relakhs.com/investment-planning-investment-plan/ Personally, I do not track the IPOs. If you believe that a particular Issue is reasonably priced and the company has strong fundamentals, you may subscribe to an IPO with a long-term view. Investing to make quick gains on the LISTING day can be like playing GAMBLING, which may be very risky.

Sathya NA replied 10 years ago

Thank you Sreekanth G. Yes, after noticing many of your blogs, investments in equity, and in case respective mutual funsd should be kept invested for long term to reap the maximum returns. Having that in mind I enquirer about lPO.
Once again thank you sir, feeling good to know about you.

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Sreekanth Staff answered 10 years ago

Also, go through this article, can be useful: http://www.relakhs.com/10-reasons-avoid-short-term-trading-stock-markets/

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vikasnair1 answered 8 years ago

Through investing in an IPO you can avail certain benefits like:

You get to buy a company's share a lower price
If the company has a potential to grow, an IPO investment can really benefit you
When the company is listed in the market, and if the opening price is higher than the IPO allotment price you gain an opportunity to earn good returns.

Investing in IPOs can help you gain goof returns but the trick is to identify the right IPO to invest in.

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vikasnair1 answered 8 years ago

To know more on the latest IPO listings you can visit this link.

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lokhandeviraj answered 6 years ago

Businesses nowadays require funds for varied purposes. This could be expansion, diversification into a new business, or expanding their presence across India as well as globally. Such requirements can be met with an IPO only. As an investor, you should know how to apply for an IPO. When a private company or corporation is becoming public by selling a portion of its stake to investors, it is called an Initial Public Offering (IPO). Some are experts, whereas some are still learning how to invest in IPO.

The investor must decide the type of IPO to invest
They must arrange for the funds to buy a company’s share
They must open a Demat as well as trading account for storing shares and other documents electronically
Investors should know about the Application Supported by Blocked Account (ASBA) facility
They should know how to bid while applying for shares in IPO
While learning how to invest in IPO, investors must understand the allotment process