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5 Top Stock Brokers for IPO - A Digital Blogger

Top Stock Brokers for IPO Investments

Investing in IPOs is hot! Especially in the ever growing Indian business space in the recent years. If you are looking to invest either for short-term quick profits or for long-term capital investments, IPO is one of the exciting financial products to look up to. Now when it comes to the ground reality, you need to consider 2 very crucial aspects:

  • Potential of the company filing the IPO
  • Stockbroker that can make your life smooth during IPO investments

We will talk about both of these aspects in length during the course of this article so that you are 100% sure of the direction you need to set pace towards. Let's start with the IPO Part first.

Things to look in an IPO before investing your money

For beginners, this needs to be known that every business requires money to run itself. There are multiple ways to raise funds including Bootstrapping, Angel Investors, Venture Capitalists, Bank lending etc. All these modes of capital raising are done in private and most of the times, the lender gets a specific percentage of the company value in lieu of the principal amount lent.



Company Research

Yes, you may do that but it is going to be tough to find accurate and detailed information about a company that has been running privately in the past. Even though you are able to find detailed information and data points, it's going to be tough to trust all that.However, there is a way or let's say an indicator.

When an IPO is filed, the company filing for an IPO sets a specific percentage of large institutional investors along with the retail investors (a.k.a. general public).



Don't get overwhelmed by the hype

There is going to be a lot of hype around the days of IPO filing. The company filing the IPO is going to make sure that potential institutional and retail investors go through multiple rounds of impressions about the IPO. These impressions can be made through newspapers, TV advertisements, financial websites, IPO bloggers and so on.

The idea is not to get caught in this influence storm while making a decision to go ahead with the IPO investment.


Keep a close eye on the over-subscription

What is Over-subscription? Well, there are high chances that the IPO may get subscribed multiple times than the actual number of shares opened up by the company for investors. For instance, if the company ABC opened up 1,00,000 shares for retail investors but over the course of the 3-day subscription period, retail investors subscribed for 30,00,000 shares instead - then the IPO is said to be over-subscribed by 30 times or 3000%.

Such happenings are common in the stock market depending on the company filing the IPO.


Fill out the form cautiously

Documentation is important. You need to make sure that you fill out every detail that is asked for including ECS refund (otherwise, you may be left out from the facility of getting a refund easily into your bank account), transactional details about the IPO, cheque to be issued, IPO application form and so on.


Select a reliable Stockbroker

Last but not the least, you need to make sure that you have chosen a reliable stock broker that can provide you with an easy IPO application process. You need to have a Demat account to apply for an IPO. This is mandatory. You may also need a trading account later when you look to sell off or trade the stocks you have been allocated.




Top Stock Brokers for IPO Investments

Angel Broking is one of the prominent names in the stock market when it comes to full-service stockbroking. It provides:

  • Online account opening based on Aadhar card
  • Well designed trading platforms



Motilal Oswal is another brokerage house from the full-service broking space. This broker has spent a lot of time at the institutional level and with that rich experience, can certainly be a lot handy when it comes to IPO investments. Like Angel Broking, Motilal Oswal also has an in-house research team and is going to provide you with the following values:

  • Online account opening based on Aadhar card
  • Wide range of trading products



Anand Rathi is one of those stockbrokers that have been around for a while and has under-marketed itself over this period. Nonetheless, it offers some positives as mentioned below:

  • Reasonable offline presence through its sub-brokers and franchises




5Paisa is a discount brokerage house and is an initiative from India Infoline or IIFL. The best part of choosing 5Paisa is that you are going to pay much lower brokerage charges when you make up your mind on trading on the stock market or selling off all or part of your IPO holdings.

Some of the best values offered by this broker include:

  • Low brokerage charges across the financial segments
  • Online account opening based on Aadhar card



So, these are the recommended top stock brokers for IPO Investments.

At the same time, you need to realize that....



For rest of the information and check the exact details on the above-mentioned stockbrokers, you can check Top Stock Brokers for IPO Investments


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