The year 2022 promises an array of IPOs to invest in, and there’s no dearth of allotments waiting to happen. No doubt, this will be a super year for the Indian Stock Market as IPOs abound and investors rush to get a fair share. In 2021, with some 60 odd IPOs getting listed, investors rushed to diversify their portfolios. In terms of IPO allotment, the market is enthusiastic this year and investor sentiment is impatient to grab the best company stocks.
An IPO, or Initial Public Offering is made when a private company goes public with its shares. Companies get started as private firms with a few shareholders like the founders and their relatives and friends. Venture capitalists and a gamut of financers may also be original stockholders in a private company. However, when a company has reached a substantial stage in its growth, and has affirmed itself in the industry it belongs to, it applies to get listed and offer its shares to the general public. When this occurs, any individual can become an investor in the company and bid for a particular amount of shares in the company. Nonetheless, although you may want a certain amount of shares allotted to you, you may not get the IPO allotment you bidded for, getting less than you expected, or even getting no allotment.
You may find an upcoming IPO among several that are due in 2022, but how do you ensure allotment? This remains a question for a huge chunk of excited investors. If you look at history, not too far back, in 2021, nearly every IPO that was offered was oversubscribed by a massive degree. Nevertheless, there are specific ways that you can focus on to increase your chances of getting the allotment you want.
The fact of any upcoming IPO may thrill you as an investor, but it's not a good feeling you get when you don’t get an allotment you expect, or worse still, no allotment at all. Hence, you should know how to better your chances of IPO allotment by going through methods mentioned below:
With Motilal Oswal, a key player in the broker business, you can invest in any upcoming IPO, and a whole lot of other instruments. All you need to do is open a Demat account and get on your way to a realm of gains and good returns.
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