In recent years, initial public offerings (IPOs) have become highly popular among retail investors in India. With listings from Nykaa, Zomato and LIC drawing massive public attention, public issues have become an essential gateway for individuals wanting to tap into the potential of the Indian stock market.
Adding to this trend, technology has revolutionised how we track, invest in and manage these opportunities. Modern online trading apps have made it easier than ever to monitor new stock listings, place trades instantly and manage a diversified portfolio.
In this article, we will explore how you can efficiently track IPOs and newly listed stocks using the latest tools and strategies to maximise your stock market investing journey.
What Happens After an IPO?
Most investors are often focused on investing in initial public offerings. But, not many are aware of what happens once the company is listed on the Indian stock market.
Now, when a stock is listed on the exchanges after a successful IPO, it can be freely bought and sold by investors. The stock price changes depending on the number of shares and the price at which they are bought and sold. For instance, if the demand for the stock is much higher than the supply, the stock price rises and vice versa.
Importance of Tracking Newly Listed Stocks
As an investor, it is important to track newly listed stocks. Tracking new stock listings can reveal the following key insights:
- Whether the company lives up to the expectations of the market
- Price movements, stability and volatility post the IPO process
- Early signals for potential long-term growth or decline
- Institutional buying or selling activity post IPO, which is a crucial indicator of bullish and bearish sentiment
- Financial and stock performance compared to their competitors
With the help of these insights, investors can refine their portfolio strategy and make timely decisions aligned with their long-term investment goals.
Evaluating Post-IPO Performance
Once a company is listed on the Indian stock market, investors must consistently evaluate its performance to ensure it performs according to expectations. Some factors that investors must take into account when evaluating the post-IPO performance of a stock include the following:
- Quarterly earnings reports
- Promoter shareholding changes
- Industry trends
- Overall economic conditions
- Regulatory announcements
Tracking these aspects diligently can help investors decide whether to hold, accumulate or exit newly listed stocks.
Using an Online Trading App to Stay Ahead
When online trading apps were first introduced, they were primarily designed to facilitate the buying and selling of stocks. However, with the evolution of technology, some of the best trading apps in India have now become comprehensive financial ecosystems that not only allow investors to trade but also help in investment tracking, research and analytics.
Features to Look For in a Trading App
Now, if you are planning to use an online trading app to manage your IPO investments, it is important to choose the right option. Here is a quick overview of some key features you must look for in a trading app.
- A real-time IPO calendar for staying updated on the upcoming and ongoing initial public offerings.
- Instant alerts and notifications to get updates on price movements and stock-related news.
- Research reports that provide access to company analysis, recommendations and valuations.
- Integrated investment tracking to seamlessly track the performance and price movements of your asset portfolio.
- A user-friendly interface that makes it easy to navigate the platform and enhances speed and efficiency when placing orders.
- Advanced encryption protocols, two-factor authentication (2FA) and other robust security measures to protect your account and sensitive data from unauthorised access.
An advanced online trading app can be a one-stop solution for both beginners and seasoned investors aiming to track new stock listings effectively.
Case Study: Tracking Bajaj Finance and Similar Stocks
Let us consider a real-world example – Bajaj Finance – and how tracking the stock post listing on the Indian stock market helped investors.
Bajaj Finance is one of India’s leading non-banking financial companies (NBFCs). The company was listed on the exchanges in 1994. Since its listing, the stock has demonstrated how consistent performance post-listing can create tremendous shareholder wealth. Companies like Bajaj Finance are benchmarks for investors due to:
- Exponential Revenue and Profit Growth: The company’s earnings have consistently beaten market expectations.
- Stock Splits and Bonus Issues: These corporate actions have increased liquidity and attracted retail investors.
- Strong Management: Professional governance and strategic business expansion have played key roles in enhancing the company’s financial position.
Investors who tracked Bajaj Finance diligently post-listing and stayed invested witnessed outstanding returns. This underscores why monitoring a company after its IPO is vital.
Now, when analysing new stock listings, it is important to focus on fundamental factors such as the following:
- Comparing the stock’s valuation ratios, such as P/E and P/B ratios, with industry peers.
- Assessing its earnings growth trajectory over multiple quarters.
- Analysing management commentary to understand the strategic decisions.
- Reviewing dividend payout trends for income-generation prospects.
A diligent approach to investment tracking post-IPO can help investors identify potential future multi-baggers, just like Bajaj Finance.
Conclusion
The IPO is just the beginning of an investment journey. True success in stock market investing comes from consistently tracking and analysing your holdings, especially new stock listings. With the best trading apps in India, investors can stay updated, react swiftly and make informed decisions backed by data and insights. Whether you are following the latest IPOs in the Indian stock market or evaluating blue-chip companies like Bajaj Finance, leveraging the right online trading app can make all the difference.
As an investor, when evaluating the best trading apps in India, it is important to make sure that it is linked to a robust demat account and has a seamless integration of research tools, real-time alerts and user-friendly interfaces. This way, you can make sure you enhance your stock market investing journey to the next level.