Investing in Initial Public Offerings (IPOs) is proving to be interesting, especially for those who are looking to benefit from new market entries. IPOs can, however, be quite tricky, and one must understand how to perform an IPO status check on their investments. The number of IPOs, as well as the amount of funds raised through IPOs in public markets by Indian companies in 2023, improved significantly as 243 companies raised more than $8.4 billion.In light of the surge in IPOs in recent times, updating oneself regarding one’s investments in IPO stocks is important. Here’s how you can monitor your IPO status effectively:
Understanding IPO Allotment Status
In conducting an IPO status check, the first step is to know the allotment status. In the case of applying for an IPO, the allotment status tells whether or not the applicant has been given some shares in that particular offering. It is the duty of the registrar of the IPO to take charge of allocating shares to investors. As a general rule, the status of the allotment is released on the Internet one week after the closing date of the Initial Public Offering (IPO).
In order to know your IPO allotment status, you will need your Permanent Account Number (PAN) and the IPO application number. Many of the registrars have online facilities which tell you the status of your allotment by simply entering these details. All that is needed is to go to the registrar’s site, provide information as required, and submit it in order to get the status. This stage is very important because it will determine whether or not you will have a share in the newly listed company.
Keeping Track of Recent IPOs
Monitoring recent IPOs is crucial for making effective investment choices. An assortment of financial news channels and websites that deal with stock market details provide information on upcoming IPO, the status of their subscriptions, and allotment dates. It should also be noted how the subscription status changes during the bidding process, which is especially useful. Usually, if this indicator is high, a favourable listing is expected at the stock exchange.
Apart from the levels of subscription activity, it is good to pay attention to the dynamics and news about the area of the business whose stocks are going to be issued. In this regard, one can say that though there are no shares currently allotted, there are indications about how the given stock will act after it is listed on the market.
Monitoring IPO Stocks Post-Allotment
After your allotment status has been verified, it is important to pay attention to the performance of your IPO stocks. The day of listing holds many important events, and out of these, the most crucial one is the day when you will be able to start trading for your shares. There is a possibility that the price of the shares will move widely on that initial trading day, depending on how much the demand is and how optimistic the investors are. Looking at the stock’s performance on the first day of its trading will help you determine the market’s response to it.
When the listing is done, and your stocks are allocated, it is also important to track the IPOs continuously. In terms of monitoring, there is a great need to observe quarterly earnings reports and business announcements that impact the status of your investment.
Wrapping Up
The first important aspect of managing a portfolio is to regularly perform an IPO status check of your investments. Owing to such extensive knowledge of the allotment procedure and keeping track of recent IPOs, you can improve your strategies of investment.
Investing in Initial Public Offerings has its rewards, but it is not easy and does not come without challenges. If you are an investor who wants to know more about investment opportunities and the dynamics of the market, then you must check out Research 360 from Motilal Oswal. Driven by rich market research resources, you will be able to analyse trends and make investments that serve your purpose.
