You waited patiently, applied for an IPO, and at last got that wonderful confirmation: your allocated IPO is successful. But what then? Many novice investors find the path after allocation to be unknown. Using your trading platform or mobile trading app, this article will lead you through the important actions that follow an IPO allocation, manage your shares, and get ready for listing day.
Step 1: Share credit to your demat account.
First thing that occurs once your IPO allotment is confirmed is credit of shares to your Demat account. Usually, this happens one day before the stock market lists the item formally. To verify the shares have been deposited, check your Demat account using your depository participant—such as CDSL or NSDL—or using the trading portal of your broker.
If you use a mobile trading app, you will probably get a notification right away when the shares are credited.
Step 2: Partial or non-allotment refunds
Should you have applied for more shares than you have been allocated or if you did not receive an allocation at all, the unblocked amount will be reimbursed back into your associated bank account.
Usually, this is accomplished under the ASBA (Application Supported by Blocked Amount) system. Usually three to four days following the allocation, refunds are handled fast.
Step 3: Hold off till Listing Day.
The actual activity starts on the day of listing, when the company’s stocks are traded on the BSE/NSE. Today, the market decides the share price depending on demand and supply. Monitoring the opening price and price fluctuation is crucial for good IPO investment.
Should the stock open over the allocated price, listing gains can be really noteworthy. Conversely, if the company listings at a discount, depending on your investing objectives you might want to think about keeping the shares long-term.
Step 4: Sell or Hold – Choosing the Correct Action
Your shares are now online; you have to decide whether to hang onto them for possible future increase or sell them for listing gains. Several elements influence this choice:
- Your objectives in terms of money
- Company principles
- Feelings in the market
Your whole portfolio and risk tolerance should match your IPO investment plan. While some investors stay long-term committed, others schedule immediate returns.
Step 5: Track performance and keep informed in step five.
Track your investments whether you sell or hold. Create alerts for market swings, corporate news, and earnings releases using your mobile trading app. Watchlists, portfolio tracking, and research tools available on many trading systems help investors remain current and make wise selections.
Conclusion:
Getting an allocation for an IPO marks only the start of your IPO investing trip. Your whole returns can be much changed by your following action. Every action counts from reviewing your Demat account and following listing day to making wise judgments using your trading platform or mobile trading app.
The secret is to keep educated, create well defined objectives, and avoid allowing feelings guide your financial decisions. Your IPO investments might turn into a profitable component of your portfolio if you handle things correctly.
