India raised $2.8 billion through 62 Initial Public Offerings (IPOs), contributing 22% to global IPO activity in just the first quarter of 2025. IPOs attract attention for good reasons. They give investors early access to companies entering the public market, often at attractive valuations. If the business performs well, the growth potential can be significant. IPOs also add diversification to your portfolio and spread risk.
But to unlock the full potential of IPO investments, you need the right information, timing, and trading and demat app. Let’s look at how you can achieve that.
Use tools that make IPO investing more efficient
You can invest in an IPO through many online and offline platforms, but a dedicated demat account with a feature-rich trading app simplifies the process. It gives you access to upcoming IPOs, companies’ financials, historical data, allocation updates, and post-listing performance details, all in one dashboard. It also offers alerts on opening and closing dates to help you act early and avoid last-minute delays during high-demand issues.
Understand the company
Don’t rush to invest based on brand name or popularity. Read all the details about the IPO given in the Red Herring Prospectus (RHP). This includes how the company earns money, whether it is making a profit, and where it plans to utilise the funds raised from the IPO. A good company with solid business practices and a clear growth plan often have more chances of delivering value over time.
Analyse the market situation
The timing of an IPO can affect its performance. When markets are doing well, investor interest is high. This can lead to strong listings. However, in a weak market, even good companies may struggle on listing day. Keep an eye on overall market trends, interest rates, and global factors before deciding to invest. Also observe how recent IPOs have performed to get a sense of the current investor mood. A calm and informed decision is always better than reacting to short-term news.
Avoid common pitfalls
Many investors apply for IPO plans without setting limits or understanding the lot size. Applying blindly for multiple IPOs in a short time frame can scatter your focus and capital. Then there is the all-too-common mistake of exiting too soon after listing and missing the chance to benefit from long-term IPO returns.
Instead, clearly outline your objective. Think about whether you are in it for quick listing profits or are planning to hold the stock for the long term. Having clarity helps you avoid rushed decisions and remain focused on your strategy.
Buy parent company shares
If the company launching an IPO has a listed parent, holding shares of the parent firm may improve your allotment chances. In some cases, IPOs reserve a portion of shares for parent company shareholders. Even holding a single share could make you eligible. Check the IPO prospectus for such provisions. If available, buying the parent company’s shares in advance becomes an effective way to strengthen your application during IPO allotment.
Invest in an IPO today
IPO investments can be profitable, but they demand more than quick decisions. You need to understand the company, assess market conditions, and apply with clarity. Every IPO is different, and each one deserves a unique and informed approach.
For a better IPO experience, try the MO Riise app. Backed by the trusted legacy of Motilal Oswal, a SEBI-registered public entity, the app is trusted by 40+ lakh investors and traders. You can apply instantly using your UPI ID, view all IPOs (live, upcoming, and recently closed), and even pre-apply before the issue opens.
The app lets you track allotments, listing dates, and all IPO details in one place. You also get access to educational materials and 24x7 customer support. All these features help you stay ahead, respond on time, and make better decisions with every IPO.
Begin IPO investments with MO Riise today.