While reading about the Bajaj Housing Finance IPO I was shocked by looking at the numbers. A company that needed only Rs. 6,500 crores received bids worth Rs. 6 lakh crores! That's over 62 times oversubscribed. To put it in perspective, the amount is almost 1.2% of India's entire GDP. It made me wonder what would happen if all that money flowed into our markets.

One of the biggest challenges for retail investors in IPOs is non-allotment. But don't worry, there are strategies you can use to navigate this and still invest in the IPO shares.

Let's discuss the Pre-IPO Demat Strategy, many of you may know about this.This strategy involves using multiple Demat accounts to increase your chances of getting shares. It's like casting a wider net to catch more fish. However, remember that you can't use the same Demat account or PAN for multiple applications. This is the pre-IPO strategy but what if you are not allotted IPO shares.

Worry not, I have an interesting strategy for you, The CA Rachana Ranade (CARR) strategy! This strategy is for those who believe in a company's long-term potential. Here's how it works:
Suppose you are not allotted IPO shares, which is around Rs. 15k for one lot. So initially you can invest half Rs. 7,500 or a third Rs. 5,000 of your planned investment on the listing day. Now if the price corrects by 10%, invest the remaining half or another Rs. 5000, and if you have invested Rs. 10,000 till this point you can keep the balance Rs. 5000 to invest if the stock corrects further. This helps you average down your cost.

But what if the price increases?
If the price goes up, wait for a good entry point. Look for positive news or strong results.

In addition to the above, I also have one more price action strategy which I have discussed in detail in the following video link Bajaj Housing Finance | IPO Strategies .

Remember that this strategy takes patience. It's about investing for the long term, not for quick profits. So, even if you didn't get shares in the latest IPO, there are still opportunities to invest. Whether you use multiple Demat Accounts or focus on long-term investing, the key is to stay informed and make smart decisions. Good Luck!

Disclaimer : The information provided in this blog is for informational purposes only and should not be considered financial advice. Investing in stocks involves risk, and there's no guarantee of profit. Before making any investment decisions, it's crucial to conduct thorough research, consult with a financial advisor, and consider your individual financial situation.