I want to invest for short time so please let me know which IPO will give positive gain?

Short Answer

Selling the IPO shares on the first day of its listing could get you considerable postive gains. But there is a higher chance for the prices to rise and even fall if you wait for a more extended period.

Detailed Answer

Well, if anyone could predict the future correctly and provide you the information on which IPO’s would be doing good, then all would be rich within an instant. But that’s not the case here. A company often moves towards an IPO for the sole purpose of raising capital or for some other growth-related endeavor. At the listing price, the company's IPO shares are relatively higher than what the investor might have paid for it.

This isn’t the case at all times. The value of one share for an IPO might be higher on listing day but could fall dramatically given the demand, popularity, company’s growth, and whatnot.

So, if you are patient and can wait out the company's growth to increase their valuation and, in turn, the shares, the IPO will be beneficial. But to make a quick positive gain, selling your IPO shares on the listing day could be fruitful provided its higher than the investment you made per share.

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Categories: IPO Basics
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Related FAQs

What is an IPO or Initial Public Offering?

IPO or Initial Public Offering is the process through which a private company goes public by offering its shares to the public for the first time.

Are IPOs safe for investing?

Investing in an IPO can be considered safe as there are no major Capital Loss risks and most companies that come up with an IPO price their shares at decent valuations which gives an opportunity to the investors get the shares at a discount from the market price. Most good quality companies also give good Listing gains and good returns in a short time. Some examples are, IRCTC, Route Mobile, Burger King, etc.

How to sell IPO?

You can sell your shares of an IPO through the stockbroker application or website. Let's see what's the simple process to sell the shares you hold.

How many days an IPO remain open for public?

IPO is the primary stage where the company goes public and starts gaining investments from people. It is essential for the company to manage the details properly. For Public, IPO should remain open for at least 6 days and for maximum 10 days.

What Happens when an IPO is oversubscribed in India?

IPO is alloted by following the pre-defined rule laid down by the SEBI. When an IPO is oversubscribed it gets allocated by considering the minimum lot size. If still not solved, then a computerized draw of lots is conducted.

How to increase IPO allotment chance?

Subscribing for an IPO with multiple accounts, avoiding last-day applications, and choosing minimum bids are few ways to increase IPO allotment chances.

Can a minor apply in IPO?

Have you ever wondered id a minor can apply for an IPO? Yes, a minor can apply for an IPO given that he/she has a PAN card and a Demat account.

Can we apply for an IPO online on Sunday?

Yes, you can apply for an IPO application on Sunday as well but through an online application. But, you need to keep few points in mind before doing that.

Can I apply more than one IPO application in my name from different saving bank accounts in same bank or different banks?

Only one PAN card can be used for one application. No matter how many different savings account details you might utilize, if there is the same PAN number in more than two applications, then all of them would be revoked.

Can a person apply in the non-institutional bidder category of an IPO?

Yes, an individual investor can apply through a non-institutional category of an IPO given that they have enough influx to bid in the category.