It’s not true that all IPOs gain on listing day, there are many IPOs that failed badly. Though based on the macroeconomic factors and the supply of money in the market, this situation is true in the current scenario, IPOs that are overpriced without much value will never be treated well by Mr. Market. There are numerous such examples - starting with SBI Cards (there is value, but it’s overpriced), same is the case with Equitas Small Finance Bank IPO also.
The minimum amount you can apply is approximately 15,000 this varies a bit based on the price band. IF you are a retail investor, it’s advisable to bid for one lot of the shares at the cutoff price. You don’t need to worry about the price range as you would be automatically allocated shares at cutoff if you choose this option
Why do companies go for IPOs and share the future growth , prospect , expansion , profit , ownership , capital price appreciation etc ?
Instead ; why don’t the company, just issue the debentures or bonds etc @ 10~15% interest p.a. ?
There are 2 communities say. E.g traders and investors .
Some prefer to apply for IPOs and keep for long term .
Some prefer to apply for IPOs and exit on the listing day .
Some prefer NOT to apply for IPOs ever .
I want to know different view points of all the respected members on this forum
Your views opinions matter . So pls do share .
Is it a good thing for active day traders to apply IPOs ?
For me IPO is just a starting point. Making too much out of it doesn’t make sense to me, mainly because, for good company IPO, chances are allotment are very less and for retailer max share you can get is for around Rs. 15K
15 thousand is frankly not a meaningful allocation, so whether you do, sell it on listing or keep it forever, it would hardly matter on your overall portfolio.
For good companies, what you do after listing (slowly build position, buy on dip, buy on listing day) is what actually matters in long run.