Initial Public Offerings (IPOs) have become increasingly popular among Indian investors looking to build wealth. Whether you are a first-time investor or someone wanting to diversify your portfolio, understanding how to invest in IPOs is crucial for making smart financial decisions.
What is an IPO?
An IPO is when a private company offers its shares to the public for the first time. This allows everyday investors like you to own a piece of successful companies. The Indian stock market saw several notable IPO listings in November 2025, including Lenskart Solutions Ltd and Studds Accessories Ltd.
Why Invest in IPOs?
IPOs offer unique opportunities. First, they allow you to invest in companies early in their public journey. Second, many IPOs have shown strong growth potential. Third, investing in IPOs helps diversify your investment portfolio beyond regular mutual funds and established stocks.
Step-by-Step Guide to Invest in IPO
- Open a Trading Account: You need a demat account and a trading account with any authorized broker.
- Complete Your KYC: Know Your Customer process is mandatory. Submit your identity proof, address proof, and bank details.
- Research Before Applying: Read the prospectus. Understand the company’s business model, financial performance, and growth plans.
- Apply During IPO Period: Most IPOs have a bidding period of 3-5 days. Apply through your broker’s portal.
- Await Allotment: After the IPO closes, shares are allotted. You will receive confirmation.
- Shares Get Listed: On the listing day, your shares appear in your demat account and can be traded.
Risks to Consider
While IPOs offer opportunities, they come with risks. New companies may face operational challenges. Stock prices can fall significantly post-listing. Always invest wisely and never chase quick profits.
Conclusion
Investing in IPOs can be rewarding if done with proper research and planning. Start small, learn continuously, and gradually increase your IPO investments as you gain confidence and knowledge.