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Risk Management IPO/Equity
- Thread starter hender
- Start date
- Replies 11
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I manage IPO and equity related risk with a simple approach that balances data, sentiment, and psychology.
Whenever I get an IPO allotment, I first check how many applications were allotted in the Retail and HNI categories. This gives me a sense of demand strength and potential listing-day behaviour. Then I look at the GMP and the overall market sentiment to form a rough expectation of the listing range.
For HNI allotments, I usually prefer a partial exit on listing day to lock in quick gains, and then I book the remaining profits within the next 1–2 weeks depending on how the stock stabilises. If the company looks fundamentally strong, future proof and attractively valued, I sometimes even add more post listing.
For regular retail lots, I don’t overthink much, I typically exit either in the pre-listing bidding session or within a couple of days after listing.
Honestly, if someone is new or can’t handle sudden volatility, booking profits in the pre-listing session is the safest and most peaceful option. At the end of the day, mental peace matters more than squeezing out the last rupee.
Whenever I get an IPO allotment, I first check how many applications were allotted in the Retail and HNI categories. This gives me a sense of demand strength and potential listing-day behaviour. Then I look at the GMP and the overall market sentiment to form a rough expectation of the listing range.
For HNI allotments, I usually prefer a partial exit on listing day to lock in quick gains, and then I book the remaining profits within the next 1–2 weeks depending on how the stock stabilises. If the company looks fundamentally strong, future proof and attractively valued, I sometimes even add more post listing.
For regular retail lots, I don’t overthink much, I typically exit either in the pre-listing bidding session or within a couple of days after listing.
Honestly, if someone is new or can’t handle sudden volatility, booking profits in the pre-listing session is the safest and most peaceful option. At the end of the day, mental peace matters more than squeezing out the last rupee.
If it's bad 😔 or not useful, just tell I'll 😭
Great Learning.👏
Let's take today's example;
Could you please share your insights to understand it more.
I received 3 retail applications and 1 HNI application. Since the expected listing was around the GMP range, I followed a risk balanced exit approach:
Sold 1 retail lot in the pre-IPO bidding session at ₹505
Sold the remaining 2 retail lots at ₹515
From my HNI allotment (518 shares), I booked profits on 200 shares at ₹515
I’ve kept the remaining 318 HNI shares with a clear plan:
If the stock moves up, I aim to exit around ₹550–₹560 within the next 1–2 weeks
If it goes down, I’m placing a stop-loss near ₹460
This way, if the price rises, I’m happy with the upside on the shares I held.
And if it falls, I’m still satisfied because I already booked profits on a good portion.
Basically, I structure the trade so that my mind stays relaxed irrespective of the market move.
At the end of the day, it’s all about balancing gains with peace of mind.
fradela
TF Ace
For me, IPO is only for Listing day gains.
I Only apply IPO if the GMP is good.
Use separate DEMAT account, one for investment another one for Trading (including IPOs).
Big Punters write ✍️ script in encryption, and our (retailer) job is to do decryption!!
Sometime 😜
Our Conservative Approach;
Me (A)+ Friend(B) (15k +15k) pooled and apply 1 lot, in case of back 2 back IPO - apply second IPO as well (Max). (All in 50:50 - Profit or Loss) Since 2023 end.
Background (Since 2020 - Friend cum IPO mentor (C), used to apply IPO/Equity Trading and do motivate us to apply IPO/Invest. We tried 2-3 IPO , but stopped applying once we not got allotment in 2022. Than he suggested to keep separate funds for 2 IPO ONLY (30k - 15k each) and apply selective IPO, (He prepare list of ongoing IPO and do send us the good IPO details with GMP) but regularly without fail/disappointment of no allotment.
Friend B is not Active in IPO/Stocks so he needs push 🫷 , so mostly 1/2 (7.5k) IPO per person ..
like we applied 1 Capillary in sharing - but no allotment.
Not applied PW and GROWW - Risk Management became 😁😁😭😭.
Disc: Above arrangement being shared as example, it may or may not suitable for everyone, take informed decision !!!
Me (A)+ Friend(B) (15k +15k) pooled and apply 1 lot, in case of back 2 back IPO - apply second IPO as well (Max). (All in 50:50 - Profit or Loss) Since 2023 end.
Background (Since 2020 - Friend cum IPO mentor (C), used to apply IPO/Equity Trading and do motivate us to apply IPO/Invest. We tried 2-3 IPO , but stopped applying once we not got allotment in 2022. Than he suggested to keep separate funds for 2 IPO ONLY (30k - 15k each) and apply selective IPO, (He prepare list of ongoing IPO and do send us the good IPO details with GMP) but regularly without fail/disappointment of no allotment.
Friend B is not Active in IPO/Stocks so he needs push 🫷 , so mostly 1/2 (7.5k) IPO per person ..
like we applied 1 Capillary in sharing - but no allotment.
Not applied PW and GROWW - Risk Management became 😁😁😭😭.
Disc: Above arrangement being shared as example, it may or may not suitable for everyone, take informed decision !!!
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