How to Sell IPO even before Listing in Special PreOpen for IPO Listing Gains | Best IPO Listing Gains Strategy 2024

In the frenzy of IPO in Indian stock markets, Initial public offerings (IPOs) gains present a unique opportunity for investors. But what if I told you there’s a way to make IPO Listing Gains even before the official listing to maximize your gains? Let’s dive into the strategies and insights that can help you unlock this potential.

What is Special Preopen Session in share market?

The special pre-open session for IPOs on the NSE and BSE is a dedicated one-hour window designed to determine the listing price of a new stock on its first trading day. Here’s a breakdown of its key features:

Purpose:

• This session aims to discover a fair and market-driven opening price for the IPO through a process of order placement and matching.
• It replaces the traditional fixed issue price set during the IPO offering.

Timing:

• The special pre-open session for IPOs occurs on the listing day of the stock.
• It runs for one hour, typically from 9:00 AM to 10:00 AM IST. Although you can place orders between 9:15 to 9:43 (to be safe) only.

Order Types:

• Only limit orders are accepted during this session. These orders specify a maximum or minimum price at which an investor is willing to buy or sell a share.

What order should be placed for listing gains in PreOpen?

You need to place the LIMIT SELL ORDER @ the minimum price for which you will sell or lower limit of the share if you want to sell at any price, so that it gets executed surely and book IPO listing gains.

Example: If Vibhor Steel Tube IPO having IPO Issue Price 151/share.
Case 1:
– On Listing day I want to book IPO Listing Gains and not book any loss. I will place LIMIT Sell Order of 151 for number of shares to be booked.

Case 2:
– If I want to book anyhow without worry, if it will list in either profit or loss, I will place LIMIT Sell order of Lower Circuit rate (that you can find in broker app of Zerodha/Upstox etc in share details).

Order Matching:

After all the orders placed by 9:45 AM, the buy and sell orders are matched to get equilibrium price (listing price). This price represents the point where total buying and selling interest meet, reflecting genuine market demand.

The equilibrium price becomes the official listing price of the IPO at the start of regular trading (usually at 10:00 AM IST).

Benefits to sell for IPO Listing Gains:

• The special pre-open session offers opportunity to book ipo listing gains as the listing day and few following days are most volatile.
• It allows investors to gauge market sentiment and adjust their bids or offers before regular trading begins.

Latest SEBI SME IPO Allotment Process Tricks NII & Retail [2024] | Basis of Allotment | Best Process to apply SME IPO from Zerodha, ASBA

How to Buy in IPO shares in Preopen session?

1. Specific IPO: Search and Select the specific IPO you’re interested in buying.
2. Pre-Open Order: Look for an option to place a BUY order.
3. Order Details: Enter the following details in your pre-open order:
   • Order Type: Select “Limit Order” as only limit orders are allowed in the pre-open session.
   • Price: Enter the maximum price you’re willing to pay per share.
   • Quantity: Specify the number of shares you want to buy.
4. Submit Order: Once you’ve entered all the details, review your order carefully and submit it.

Real-life Success Example

Example: Paras Defence was one of the most hyped IPO in 2021. [ Paras Defence IPO Details]
Issue Price: 175/share
Listing Price: 475/share @170% premium then made high of 900 and then remained below its listing price for many months, eroding gains.

For Short and Medium Term this is the best IPO Listing Gains strategy in market.

Conclusion

As we wrap up our journey into the world of selling IPO shares before listing, remember that informed decisions and strategic moves can pave the way to unprecedented gains.

FAQs: Your Burning Questions Answered

Q1: Can anyone participate in the special session for selling IPO shares?

Yes, the special session is open to all eligible IPO allotees eager to maximize their gains before the official listing.

Q2: What risks should I be aware of when selling IPO shares early?

Market fluctuations and pricing uncertainties are potential risks. Mitigate them by staying informed and having a well-thought-out strategy.
Many of the times in small Issue Size, big investors can influence listings.

Q3: How does market sentiment affect pre-listing opportunities?

Market sentiment can impact pricing and demand as in 2023 Bull Market lots of IPO frenzy pushed the valuations high. Understanding these dynamics helps you make more informed decisions.

Q4: Is it possible to sell IPO shares before listing in every IPO?

While not guaranteed for every IPO, almost all times exchange offer a special session for early investors. Check the IPO prospectus for details.

Q5: Can I change my mind after selling IPO shares in the special session?

Once the transaction is complete, it’s typically irreversible. Ensure your decision aligns with your investment strategy.

Ready to embark on your journey of selling IPO shares for listing gains? Armed with knowledge and a well-crafted strategy, you can navigate the complexities of the stock market and unlock the potential for substantial profits. Happy investing!