Initial Public Offerings (IPOs) give investors the opportunity to invest in companies as they enter public markets.
With online platforms like Flattrade, applying for an IPO is now simple, paperless, and efficient.
What is an IPO?
An IPO (Initial Public Offering) is when a private company offers its shares to the public for the first time and lists on stock exchanges such as NSE or BSE.
Investors can apply during the subscription window at a specified price band.
How to Analyse an IPO Before Investing?
IPO investing should not be driven by hype or grey market discussions. A structured approach helps improve decision-making.
1. Understand the Business Model
- What does the company do?
- Is it profitable?
- Does it have a competitive advantage?
Look for consistent revenue growth and scalable operations.
2. Study Financial Performance
Focus on:
- Revenue growth (last 3–5 years)
- Profit margins
- Debt levels
- Return on Equity (ROE)
Strong and consistent performance is generally a positive signal.
3. Evaluate Valuation
Compare the IPO valuation with listed peers.
If pricing appears significantly higher without strong justification, risk increases.
4. Check the Purpose of the Issue
Refer to the Red Herring Prospectus:
- Is the company raising funds for expansion?
- Or are promoters exiting through Offer for Sale (OFS)?
Growth-focused capital usage is often viewed more positively.
5. Assess Industry Outlook
Even strong companies can struggle in weak sectors.
Evaluate:
- Industry growth potential
- Regulatory environment
- Customer concentration risks
- Debt exposure
6. Track Subscription Data
Monitor subscription levels across:
- Retail category
- QIB (Qualified Institutional Buyers)
- HNI category
Strong institutional interest may signal confidence – but it should not be the only factor.
How to Apply for an IPO on Flattrade
1. Discover Upcoming IPOs
- Log in to the Novo platform
- Navigate to the IPO section
- View issue dates, price band, lot size, and company details
Important IPO insights, financial summaries, and company overviews are also available on Kosh by Flattrade
2. Understand Price Band & Lot Size
- Price Band– The bidding range
- Lot Size– Minimum number of shares per application
Example:
If the price band is ₹100–₹110 and the lot size is 100 shares, the minimum investment at cut-off would be ₹11,000.
Retail investors often apply at the Cut-Off price.
3. Apply Through Flattrade
- Select the IPO
- Enter the number of lots
- Choose Cut-Off price (or bid manually)
- Enter your registered UPI ID
- Submit the application
Approve the UPI mandate on your banking app.
The amount is blocked under the ASBA process until allotment.
Note: Mandate approval must be completed within the allowed timeline.
4. Allotment & Listing
- Allotment is finalized by the registrar
- Shares are credited to your Demat account if allotted
- Funds are released if not allotted
- Shares are listed on NSE and BSE
Allotment is not guaranteed.
On listing day, investors may choose to hold or exit based on strategy.
Navigating IPOs with Flattrade
Flattrade simplifies the IPO journey from discovery to application:
- Access to ongoing and upcoming IPOs
- Structured company insights through Kosh
- Seamless UPI-based application process
- Integrated portfolio tracking
With a streamlined workflow, investors can focus on evaluation instead of paperwork.
IPO investing is not about chasing listing-day excitement. It is about identifying long-term value before the broader market fully prices it in.
An informed IPO application is not a gamble. It is a calculated decision.
With disciplined research, structured analysis, and the right platform, IPO investing becomes less about luck and more about strategy.
Ready to Invest in an IPO?
Discover, analyse, and apply for IPOs seamlessly on the Novo platform by Flattrade.
Access issue details, review company insights, and complete your UPI-based application – all in a smooth, paperless process.
Log in to Novo today and explore ongoing IPO opportunities.
