In this article, we will discuss about...
Introduction
So, you’ve tried insurance, mutual funds, and smallcases. Now you’re looking for something more exciting—something with serious money-making potential. Welcome to the world of IPO strategy, the next big step in your investment journey.
In this article, we’ll break down how IPOs work, how much money you can actually make, and how to boost your chances of getting in. No fluff—just real data and practical tips.
What’s an IPO, Anyway?
IPO stands for Initial Public Offering. It’s when a private company sells its shares to the public for the first time.
For investors like us, it’s a golden opportunity. IPOs can offer quick, high returns—sometimes much faster than mutual funds or other investments. But only if you play your cards right.
How Much Can You Really Make?
Here’s what I found after researching IPOs from the last three years:
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In 2024: If you had invested in every IPO and received allotments, you could have made up to 2210% returns. That means turning ₹1 lakh into ₹22 lakhs!
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In 2023: Returns were around 1200% (or 12x your money).
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In 2022: A quieter year, but still delivered around 200% gains.
Even if you didn’t get an allotment and only bought stocks on listing day, you could still have made 2–3x returns in some cases.
Why Gujaratis and Marwadis Excel at This Game
Many Gujaratis and Marwadis treat IPOs like a full-time business. They open thousands of Demat accounts and apply from each one. Even if only 5% of those accounts get allotments, they still walk away with solid profits.
You don’t need 10,000 accounts—but you can use a smaller version of this strategy.
Want Better Chances at an Allotment? Do This:
Getting shares in a high-demand IPO can be tough. But here are three smart (and legal) ways to boost your odds:
1. Open Multiple Demat Accounts
Create accounts for your spouse, parents, siblings—even cousins. You can manage the accounts and either split profits with them or pay a small fee.
More accounts,more applications,more chances.
2. Use Different IP Addresses
Avoid submitting all applications from the same Wi-Fi or device. This might get flagged.
Use different networks, devices, or a VPN if needed.
3. Use the Shareholder Quota
If the IPO is from a company that has a listed parent company, buy shares of the parent early. You might qualify for a special shareholder quota, which usually offers better allotment chances.
Didn’t Get an Allotment? No Problem.
You can still make money after the IPO lists—if you’re smart about it.
Here’s how:
1. Check the Founder’s Intentions
Are they building a real business—or just cashing out?
If major investors are selling out early, that’s a red flag.
2. Watch the Valuation
Don’t fall for overpriced IPOs. Read analyst reports or check trusted financial websites to see if the stock is fairly valued.
3. Wait Before Buying
Prices often dip 15–30 days after listing as retail investors book profits. Wait it out.
Then invest in stages:
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Some now
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Some after 3 months (when anchor investor lock-ins end)
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Some after 6–12 months (when promoter lock-ins end)
This reduces your risk and gets you better entry points.
Avoid the Hype
Be careful with companies spending more on ads and influencers than on building their actual product. These IPOs often crash once the buzz fades.
And remember: even sketchy companies can get listed. Being on the stock market doesn’t always mean the business is solid.
Conclusion
If you’re serious about building wealth, IPO investing is something you should explore. With a smart strategy and some effort, you can earn great returns—even with small capital.
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Don’t rush—be smart.
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Don’t chase every IPO—pick the right ones.
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Missed the allotment? Post-listing buys can still be profitable.