Free Demat & Trading eKYC APPLY e-IPO Fund Transfer

home | Knowledge Centre

Knowledge Centre

IPO guide
IPO guide, all you need to know about IPO investment.

Investing your money doesn’t have to be as complicated as rocket science. Investing in the stock market is an attractive option, picked by many for its long- and short-term benefits.

One of the popular and reliable way to invest your money is through IPO’s. It is a great way to increase wealth, whether you are new to investing or a long-term investor wanting to use the listing gains to profit off your investment. Investors are always on the lookout for upcoming IPO list and excited during a new IPO launch.

In order to invest in IPO, you will need to open trading account online, worry not these days you can open demat account online and begin direct equity investment with a few clicks.

Understanding the system of investing in IPO’s is critical. Here are a few things you will need to know before you participate in investing in IPO’s.

What is an IPO?

Initial Public Offering is the first step by the company to go public for raising funds. New IPO launch are big events in the industry and an important move for investors. New IPO companies are both large and small in size.

The company normally raises money to expand and for various corporate purposes such as an expansion of capacities, repayment of existing loans, listing, etc. Few reasons why a company also goes public are, IPO is a better option than to take a debt, diversify ownership, early exit of investors.

You can find the new IPO companies in the upcoming IPO list in the latest IPO news section on our website.

Why should you invest in an IPO?

An Investor can invest in an IPO either for listing gains or for long-term capital appreciation if the valuation is reasonable as compared to listed peers. Another plus is that there is no minimum or maximum amount of IPO.

Many, new IPO’s companies offer discounts, known as Offer for sale while launching their IPO’s it is a great choice to start creating wealth early on.

How to decide on which IPO to apply for?

While making the decision to apply for new IPO stocks, an investor should look at the Promoter Background, Corporate Governance, Fundamentals, Valuation, Dividend Policy, Offer Information, Regulatory & Statutory Disclosures, etc.

With a new IPO launch you get access to quality stocks, it is transparent by that we mean you will find all the relevant information of the new IPO stocks from financial information to the pricing of its share, the company lays out everything to lure the new investors.

How to apply for an IPO?

To begin investing in IPO one must open demat account online with a trusted broker. It is with this online demat account that one can begin bidding for the shares that are registered online aka officially apply for new IPO stocks online.

The new IPO companies determine the share volume that each investor will be allocated. The IPO issue begins to allocate the shares to the interested investors who have bid for the shares.

SEBI, Securities and Exchange Board of India, defines the allocation of the IPO. The allotment is reserved by different investor category wise name, qualified institutional buyers, non-institutional buyers and retail investors.

Note: Not all the bidders will qualify to receive the IPO. Many a times the quota of shares reserved for retail investors gets oversubscribed too.

Returns on IPO?

Potential Returns from an IPO depends on the subscription and Institutional Participation including Market Sentiments at the time of Listing.

Let’s take the example of DMart, their new IPO launch issue price in 2017 was approx. Rs. 299 per share, now their share price is Rs 2,850. If one had picked up the company’s share, they would have bagged a good amount of wealth.

Usually, companies with a solid track attract a lot of interest among investors.

Conclusion:

Platforms like LKP offer expertise on how to plan your personal investment and grow smartly, they offer service for investors to apply for IPO’s, provide upcoming IPO list, latest IPO news, details about upcoming IPO dates and new IPO companies.

Additionally, LKP also offer a consolidated portfolio reports, trading platforms, research and advisory, portfolio management, and much more.

Registered Office: 203,Embassy Centre,Nariman Point,Mumbai - 400021.
Tel: +91 22 4002 4785/4002 4786 Fax: +91 22 2287 4787
Single SEBI registration number for NSE/BSE/MSEI : INZ000216033 CIN L67120MH1994PLC080039 and Maharashtra GSTN No. 27AAACL0963A1ZZ
In case of grievances for Securities Broking /DP write to us on grievances@lkpsec.com
For linking your Demat/trading account with Aadhaar, submit the self-attested copy
of your Aadhaar Card along with a written request signed by all the holders.
SEBI Complaint redressal system Advisory for investor Investor Charter

For Call & Trade / Support Desk Call :1800-1020-198 Customer Desk No : 022-41507346 Whats App Us :7208914888 Privacy Policy & Disclaimer | FAQs | Sitemap
Arbitration Mechanism on the Stock Exchange
Copyright © 2010 LKP
Designed , Developed & Content Powered by Accord Fintech Pvt. Ltd.

Download GetSetGrow@LKP App

Attention Investors

  • Stock Brokers can accept securities as margin from clients only by way of pledge in the depository system w.e.f. September 1, 2020.
  • Update your mobile number & email Id with your stock broker/depository participant and receive OTP directly from depository on your email id and/or mobile number to create pledge.
  • Pay 20% upfront margin of the transaction value to trade in cash market segment.
  • Investors may please refer to the Exchange's Frequently Asked Questions (FAQs) issued vide circular reference NSE/INSP/45191 dated July 31, 2020 and NSE/INSP/45534 dated August 31, 2020 and other guidelines issued from time to time in this regard.
  • Check your Securities /MF/ Bonds in the consolidated account statement issued by NSDL/CDSL every month. .......... Issued in the interest of Investors