Once listed an IPO is just a regular stock, that any investor/trader may buy at its market price. Unlike an IPO there is no minimum/maximum lot
size specified for listed stocks, however the price it which the stock lists on the markets may be higher or lower than the IPO price.
Listing gains refer to the appreciation in a stock’s listing price, vis-à-vis its IPO price. I.e. in case a stock for whom the IPO price was ₹100 lists at ₹110 at the stock exchange(s). It is said to have listed at 10% gain.
Listing loss refer to the decline in a stock’s listing price, vis-à-vis its IPO price. I.e. in case a stock for whom the IPO price was ₹100 lists at ₹90 at the stock exchange(s). It is said to have listed at 10% loss.
Once an IPO is listed, the company’s shares start trading on the stock exchange. Share prices fluctuate based on market demand. The company receives funds from investors, which can be used for growth, expansion, or debt repayment
On listing day, the share price of a recently listed IPO is primarily determined by market demand and supply. It often opens at or near the offering price but can fluctuate based on investor interest, overall market conditions, and trading volume throughout the day. Factors like company performance, industry trends, and investor sentiment also play significant roles in price movement.
Investors can assess a newly listed IPO’s potential by evaluating company fundamentals, industry trends, and the management team’s experience. Key factors include valuation metrics, the planned use of IPO proceeds, and overall market sentiment. Combining these insights helps in making informed investment decisions.
Yes, a listed IPO’s price can fall below its initial offer price. This typically happens due to weak market demand, poor company performance, negative news, or broader market conditions. Once trading begins, the share price is influenced by investor sentiment and supply and demand dynamics.