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Invest · IPOs

Understand the IPO. Then decide.

A new listing is still a business to evaluate. Look at what the company does, what it is asking you to pay and whether it belongs in your portfolio.

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A company goes public

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An IPO is a company’s first offer of shares to the public. It may raise new money for the business, allow existing shareholders to sell, or do both.

You can apply during the issue window if you meet its requirements. If shares are allotted and listed, they then trade on the exchange. The listing price may be above or below what you paid.

How applying works

The offer documents and your bank or broker are the source for the application process. These are the basics of an Indian IPO.

Read SEBI’s ASBA guide for the blocked-funds process.

  1. Read the offer details

    Check the business, risks, use of the money raised and the issue price or price band. The offer documents set out the application window, lot size and who can apply.

  2. Use an eligible bank or broker

    For Indian IPOs, applications commonly use ASBA, including UPI where supported for your investor category. Check the account requirements and application instructions with your bank or broker.

  3. Wait for allotment

    Under ASBA, the application amount is blocked in your bank account. The amount for allotted shares is debited; any excess is unblocked. Applying does not guarantee an allotment.

Three questions before you apply

Attention and demand tell you that an IPO is being noticed. They do not tell you whether it is worth owning.

  • Does the business make sense?

    Read how the company earns money, its debt and the risks described in the offer document. A recognisable brand is only a starting point.

  • Is the price reasonable?

    A good business can still be an expensive investment. Consider the valuation and what would need to go right to justify it.

  • Would you hold it after listing?

    Listing-day gains are not guaranteed. The share price can fall below the issue price and remain there. Decide with your time horizon in mind.

Research you can question

Savart’s advice looks at the business and its valuation. Read the reasoning, consider the risks and decide whether an offering fits your plan.

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Explore the available coverage

Compare the Savart X and Savart One memberships, check the available research, then apply through your own bank or broker if you decide to take part.

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Questions about IPOs

What is an IPO?

An initial public offering is a company’s first offer of shares to the public. It can include newly issued shares, shares sold by existing shareholders, or both. If the shares are listed, they can then trade on the stock exchange.

Is my money debited when I apply?

Under ASBA, your application amount is blocked in your bank account. After allotment, the amount due for any shares allotted is debited and the excess is unblocked. Follow your bank or broker’s instructions and check the issue’s process and timelines.

Are IPOs a sure profit?

No. You may receive no allotment, and shares can trade below their issue price after listing. Demand for an IPO does not guarantee that the business or its valuation is right for you.

Does Savart provide IPO research?

Savart advice covers stocks, mutual funds and ETFs when research is available. Check the app for the offering you are considering, then choose whether to apply through your own eligible bank or broker.

Decide with the research in front of you.

Explore Savart’s advice or speak to the team about the plan and coverage you need.

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