Bajaj Housing Finance IPO Guide: Allotment Tips and Smart Post-Listing Strategies
Introduction: The buzz around the Bajaj Housing Finance IPO has investors eager to secure a slice of this high-demand offering. However, with oversubscriptions becoming the norm, the chances of landing an allotment can feel slim. But don’t let that deter you—there are strategic ways to increase your chances of securing shares and even more profitable tactics to consider once the stock hits the market. In this guide, we’ll explore proven strategies for boosting IPO allotment success and outline smart post-listing moves to ensure you maximize your returns. Whether you’re a seasoned investor or a newcomer, these techniques can help you navigate the competitive IPO landscape with confidence.
Strategy 1: Increasing Your Chances of IPO Allotment |
| Securing an IPO allotment can often feel like winning a lottery, especially when there’s a massive demand for a limited number of shares. The first strategy revolves around increasing your chances of getting an allotment by applying through multiple Demat accounts. Each account application is treated separately, so by applying through different accounts of family members, you improve your odds. This could be through accounts of your spouse, parents, or other family members.
For example, if you were okay investing ₹150,000 in an IPO, you could distribute this across several Demat accounts, thereby increasing your probability of at least one allotment. It’s a simple trick but one that works in heavily oversubscribed IPOs, such as those with an IPO size of ₹500 crores but bids worth several lakh crores. |
Strategy 2: The CA RR Post-Listing Investment Strategy |
| If you didn’t secure an allotment, don’t worry—there are still ways to invest profitably post-listing. This second strategy is based on fundamental analysis. If you’re confident in the company’s fundamentals, you can invest part of your intended amount on the day of listing and wait for possible corrections before investing the rest.
For instance, if you were planning to invest ₹150,000 in a stock but didn’t get an allotment, you could invest 1/3 of that amount (₹50,000) on day one of listing. If the stock price falls further by 10%, you could invest the next 1/3, and another portion if it continues to drop by another 5-10%. This method, while against typical technical analysis principles, works well if you’re confident in the company’s long-term strength and believe the initial drop is temporary due to selling pressure. |
Strategy 3: Price Action Analysis – IPO Base Formation |
| The third strategy delves into technical analysis using price action. After a stock lists, one common scenario is that it starts declining before forming a consolidation base, referred to as an “IPO base.” This is a period of sideways movement after the stock has dropped from its listing-day high.
Investors can look for a breakout from this base as an entry point. There are two possible approaches: entering at the breakout confirmation or entering in phases, buying partially at the breakout and more during any retests. The key is maintaining a good risk-reward ratio, with a stop loss placed a few points below the breakout level. |
Example of IPO Performance in 2024 |
| The year 2024 has been robust for IPOs, with several companies delivering impressive returns post-listing. Out of 54 IPOs, around 47 have provided profits, with some notable performers like Jyoti CNC (up 253% since listing), Premier Energy (up 151%), and Ek Com (up 150%). This performance highlights the importance of keeping fundamentally strong IPOs in your watchlist, even if you didn’t secure an allotment during the IPO. |
Conclusion
Navigating the Bajaj Housing Finance IPO offers both opportunities and challenges, but with the right strategies, you can tip the odds in your favor. By employing smart allotment tactics and understanding how to approach post-listing investments, you position yourself for long-term success. Whether you’re securing shares through multiple accounts or leveraging technical and fundamental analysis to make calculated post-listing moves, the key lies in preparation and disciplined execution. With these strategies in place, you’ll be well-equipped to make the most of the Bajaj Housing Finance IPO and any future opportunities in the dynamic IPO market.
Bajaj Housing Finance IPO Breaks Records: Could Your Investment Double? |
1 thought on “Bajaj Housing Finance IPO Guide: Allotment Tips and Smart Post-Listing Strategies”