Hi everyone,
I am new here, I have one doubt related to IPOs. I’ve noticed that there are no Debt IPOs available on Kite App, whereas some other brokers are offering it. Is there any specific reason?
For instance, IIFL Samasta Debt IPO is live on NSE site. But It isn’t available on Zerodha, But Fyers offering it.
Kindly Suggest…
I generally use bond platforms like GoldenPi to apply for debt IPO.
You can add your Zerodha demat details and apply debt ipo using it.
Sure, will check it out, thanks!
Hi, I checked it, It seems good but have a query… after allotment, will I be able to view it via Kite app? Or I have to check via CDSL portal?
It will be visible in Kite app. But I think it does not show buy price automatically. That you will have to manually update
Hi,
I would like to know what is the benefit/advantage of applying for a debt IPO…
I assume some apply for Equity IPOs for the listing gains it provides or for its expected growth potential, do debt IPOs too have listing gains?
Since debts are fixed income security, what difference will it make if you buy it after it gets listed?
I am new to this so excuse me if i sound naive
You can earn interest from issue date, not just listing date.
People will also sell at a premium after listing, you might not get issue price.
Yes, investing in a debt IPO for listing gains does not make any sense, because there is hardly any listing gains for such securities. However, there are couple of advantages of buying in an IPO
Getting a confirmed allotment at right price:
In debt IPO (unlike equity IPO) you can get confirmed allotment of qty you need. This is important if you are interested in investing higher sums.
While theoretically you can buy after listing, practically there is hardly any liquidity and it might take you days before you can buy required qty in secondary market.
Also debt papers are not as frequently traded (like equity) and price discovery is not very efficient. So for larger order you might end up paying unnecessary premium.
Save on transaction cost: Buying in IPO involves no additional cost. But if you buy after listing, you end up paying brokerage and other associated charges. While they are relatively small they are eat into yield you get
While you might not worry about it while buying equity (as expected returns are higher) it is relatively a bigger cost for debt.
So in nutshell, if you have made up your mind to invest a particular amount at specified yield, it is better to invest in IPO.
However, there are always chances that you might get a better deal in secondary, but there is no guarantee
Hey,
Thanks for the detailed explanation.
Much Appreciated 
