How can I invest in IPOs?

Podcast Duration: 06:53
Namaskar dosto. Angel One ke iss podcast mein aapka swagat hai.

Dosto IPO is often seen by jb traders as a good opportunity to buy shares before the share price has an opportunity to climb. IPO refers to initial public offering, yaani ki the first offer of shares by any company on the stock exchange.

Companies IPO issue karte hai taki unhe apne growth aur expansion ke liye capital mil sake.

Dosto yaad hai jab school ya college mein jab koi new student aa jata tha, tab unse dosti karna ashaan tha. Kai hafto ya maheeno ke baad bhi inke already group of friends rahte. Tabhi unse dosti karna would become a little more challenging, hai nah? Ho sakta yeh new student becomes part of the cool kids group. Phir unse dosti karna bahut mushkil rahta. Ussi tarah, the attraction of IPO is that shares pahli baar market mein rahenge - toh inke bhav kam rahte hai. Trader ya investor yeh shares ko kam price mein le sakte hai, meaning profit hone ke zyaada possibility hai.

For example Indian Railway Catering and Tourism Corporation (IRCTC) Ltd ka IPO share price tha Rs 320 on 14 October 2019. Yeh podcast lithe samey, on 12 May 2020, market down hone ke bhavjud bhi, IRCTC ka share price hai Rs 1,368. Price change percentage since the IPO is 118%. IndiaMART Intermesh Ltd ne last July mein IPO kiya tha - unke shares Rs 973 ke liye khareedha gaya tha. Ab un shares ki value hai Rs 1180, amounting to a percentage price change of 85% since the IPO. Similarly Affle India Ltd ke August me kiya hua IPO mein, share price tha Rs 745, jo ab Rs 926 tak chad gaya hai. IPO se lekar ab tak percentage price difference hai 43%.

Aise gradual price increase ke wajah se, investors IPO ke pahle bahut excited ho jate hai.

Toh how can you invest in IPO - and more importantly aap apne investment ko profitable kaise bana sakte ho?

Invest karne ke pahle kai steps follow karne ki zarurat hai

Step 1, conduct research about the company:
Akhbaar mein se, NSE aur BSE ke press releases mein se aur company ke quarterly aur annual reports mein zero jitna ho sake information nikaalo. Socho ki aap shaadi karne wale ho aur yahi hai aapki dulhan. Jasoosi karte hi ho na...pehle kitne boyfriends thae? Kaha kaam karti hai? Shaadi ke baadh in-laws ke saath rahne ke liye tayaar hai? Kya woh aapka kutta, billi, parrot aur baaki saare pets ko sahan kar payegi?

Similarly company se related mergers and acquisitions information, collaboration and expansion plans, strengths, weaknesses, opportunities, threats, competition, track record aur Profit and Loss dekhna bahut important hai. Company ka valuation bhi check karna zaruri hai.

Step 2 - Research share prices of similar companies
Bhala aapko yeh share price bahut unbelievable aur reasonable laga, phir bhi stock exchanges me jake dekhna - thoda bahut comparison karo. For example aap ABC Steel Ltd ka stock lena chahte ho aur stock ka price sirf Rs 27 per share ko dekh ke aap bahut khush ho jate ho. Lekin agar aap check nahi karoge toh aapko pata nahi chalta ki yeh company se successful steel company PQR Aluminium and Steel Ltd ka share price hai Rs 22. Ho sakta hai ki IPO ke baad stock ka price fall ho jayega.

Step 3 - Research the industry of operation
Socho ki aap kisi CNG company mein invest karna chahte ho. Company ka P&L statement toh kaafi healthy lagta hai. Lekin ussi vakt people are rapidly moving over to induction stoves instead of gas stoves aur ussi vakt kisi scientist ne solar powered rickshaw bhi invent kiya. Ho sakta hai ki the demand for CNG will drop.

Step 4 - Get your perspective right
IPO mein invest karte samay aapko daily gains ke badle, long term gains se focus karna chahiye. Company aapka paisa kisi expansion ya growth project ke liye le liya hai nah? Toh woh project on hone ke baad, share ka price bad sakta hai in a big way.

Step 5 - Do your paperwork
Apna IPO form aur cheque fill karke agent ke paas ya bank mein submit karo before the deadline.

Step 6 - Keep a keen eye
Kabhi kabhi kisi IPO ka itna zyaada popularity rahta hai ki Alia Bhatt bhi jealous ho jati hai. Itna popularity aur consequently itna zyaada demand ho ke allocated number of shares mein adjustment ho jata hai and ho sakta hai ki aapko apne expectations se kam shares mil jayega.

IPO is seen as a good chance to obtain a low buy price lekin iss mein koi guarantee nahi hai. Low bhi price milne ke baad dusre bhi variables hote hai. Price ke go even lower due to external circumstances. Humne iss podcast ke shuruwat mein IRCTC, Affle India aur IndiaMART ke IPO price un ke present market price se compare kiya tha, yaad hai. IRCTC ka 118% price difference tha. Lekin aise toh price negatively bhi change ho sakta. July 2019 mein. AB Infrabuild ka toh ka IPO share price tha Rs 29 aur abhi bahut share ka price Rs 29 hi hai. Spandana Sphoorti Finance Ltd ka IPO share price tha Rs 856 aur hi bhi raha hai at Rs 439.60 per share.

Toh as you can see dost, share ko kisi bhi price mein khareedho, there are still no guarantees. Daily market dynamics affect stock prices. Aur covid-19 jaise situation mein toh stock prices ki waat lagta hai. Dhyaan de ke, iss podcast me diye hue saare steps ko follow karo and make sure to diversify your portfolio in order to minimize the impact of risks. All the best and happy trading.