Are we chasing IPOs for quick listing gains or actually building long-term portfolios?

Markets Discussions
, ,
1

Retail interest in IPOs has jumped a lot recently, and most of the conversations I hear revolve around GMP, oversubscription numbers and the big question: how much listing gain can I get? Yes, some IPOs have delivered strong debuts, but quite a few cooled off soon after or even slipped below the issue price once the excitement died down.

There’s nothing wrong with applying for listing gains. The problem starts when that becomes the only way we look at IPOs. At the end of the day, an IPO is just another way to buy into a business. The same basics still matter – sector strength, the company’s financials, growth potential, and whether the valuation makes sense.

A simple filter I’ve been using:
• Would I be okay owning this company even if there were no listing gains?
• Do I clearly understand how this business earns money and what risks it faces?
• If it lists flat or slightly negative, am I comfortable holding it for a few years instead of rushing to exit?

I’m curious how everyone else approaches this.
Do you apply mainly for listing gains, for long-term investing, or a bit of both?
And what’s on your checklist before you decide to apply for an IPO?

2 Likes
2

Am I the only one not getting IPOs even after applying from 4-5 accounts please help to increase chances of allotment :sob:

3

Hello @Goal_Archiver , Welcome To MadeForTrade!

Many people apply for IPOs from multiple accounts and still end up with zero allotment. The main reason is simple. In oversubscribed IPOs, shares are allotted through a computerized lottery, and when lakhs of people apply, the chances naturally get smaller.

Here are a few practical tips to improve your chances while staying fully within the rules:

• Pick companies with solid financials and a meaningful business model. Applying to smaller or less hyped IPOs can also help because fewer people compete for the same number of lots.

• In very popular IPOs, apply for just one lot instead of going for the maximum. Each PAN gets only one valid entry in the lottery, and one-lot applications actually work better in such cases.

• Double-check your application details like UPI ID, apply on time, and choose the upper cutoff price when available.

Some common myths worth clearing up:

• Applying from multiple accounts increases chances: Not true. Only one valid application per PAN is allowed. Multiple entries with the same PAN can get rejected altogether.

• Applying early or late changes the outcome: The lottery does not consider timing. Every valid application is treated the same.

• A specific broker or app guarantees allotment: No platform can influence the lottery. They only submit your application.

• A certain UPI app increases chances: UPI is only for payment. It has zero impact on allotment.

• Applying for more shares improves odds: In retail, the system counts applications, not quantity. One person equals one entry.

At the end of the day, follow the rules, keep expectations realistic, and treat IPO allotment as probability, not certainty.

4

If it is an IPO don’t go near it is my call.

Those chasing quick gains with IPOs - for any gains that one make in one IPO there will be enough IPOs that will wipe those away. It’s very hard to stop gambling after the first taste of a profit. So this is likely to happen.

Those chasing value - Secondary market is a better determinant of value than the IPO value with promoter bias.

1 Like
6

In a bull market the gambling den is usually crowded :grinning_face:

7

Hum sath sath hai :people_hugging:

I too apply IPOs. My majority of trades happen are IPO selling trades

I am not into FnO or intraday, so IPOs remain only option for me to make short term gains.

1 Like
8

My take on this thread:

I am IPO investor only with no plan to hold most of my allotments.

I do hold 50% of allotment when the company is solid or is undervalued. Examples include, Waaree Energies, Sagility, Premier Energies, NSDL, Dam Capital, MBEL and Ventive Hospitality. I hold 50% allotment or full allotment in these IPOs

Remaining IPOs I get I sell on listing day itself because the plan was to get listing gains only. I don’t track those IPOs after i sell them.

Coming to my Observations: (in hindi coz i think in Hindi)

10:10am tak high lag jata h 80% time

Agar iss time k baad bhi stock uper hai toh strength h bulk sell nhi karna hai.. thoda thoda sell karo

Most of the time 10:30am tak price settle ho jaegi 1 direction me

Follow strict SL incase you just wanted listing gains like sudeep pharma ipo

When you see listing price

Taking example of sudeep pharma listed at 730

Went up quite a bit.

1. Keep trailing SL at 5% for Listing gains >15% That way you can sell near at day high and will not exit at loss after all the charges.

2. People with listing gains mood only - For IPO that gives 30-40% returns on listing, If you don’t sell at listing day due to strength or SL not hit, then keep trailing with strict SL and as soon as stock breaks previous day SL - 5% sell off immediately.

3. For listing gains people - Never keep any stock which has broken IPO price within first week of listing example Jaro and TruAlt - when these will come back to IPO price you never know.

4. Long term wale apne risk ko khud samjhe

5. For short term people - start selling in chunks when your target meets and keep your target as final SL

6. If want to do swing trading in IPO that you sold earlier due to point 3, get in if listing day high gets breached with good volumes.

  1. Whenever you get 100% gain on IPO (listing day or later) sell off 50% and secure your invested amount. Now even if that company falls, your shares are effectively free.

I can think of these right now. Will edit later if anything comes to mind

2 Likes
10

Not an IPO guy at all. I only look at companies if it has 4 quarters of results post listing. Applied to many IPOs but till date I only got 1 allotment i.e. LIC. Suffered alot with it :smiley: and then decided never to apply to an IPO after that.

11

#Metoo

80% of the time we get an idea on the strength and movement. The price either starts to fall till 10:10am or rises to a spot where there is no chance of exiting at loss.

Only problem is allotment.

[quote=“thisisbanerjee, post:9, topic:59045”]

and been doing this for 5 years now atleast

[/quote]

I am not that old.