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IPO Investing: How to Apply and What to Watch For

IPOs are often a beginner’s first taste of the market. Here’s how they work, how to apply, and how to avoid the common traps.

By ShareRocketPro Team· · 4 min read
IPO journey diagram from company to listing

An IPO (Initial Public Offering) is the first time a company sells shares to the public. Buy in the IPO and you become one of its first public shareholders.

The IPO journey from company to listing
From company to application, allotment and listing — the IPO journey.

How an IPO works

The company sets a price (or price band) and offers a fixed number of shares. Investors apply; if demand exceeds supply, shares are allotted (sometimes by lottery). They then list on the exchange for secondary trading.

How to apply

In Nepal, you apply through Mero Share using your Demat account and linked bank (C-ASBA). Elsewhere, you apply via your broker.

Key idea: An IPO allotment is not free money. Some list higher, some list lower — evaluate the company, not just the hype.

What to watch for

  • The company’s business and profitability.
  • The offer price vs its fundamentals.
  • How the money raised will be used.

Key takeaways

  • An IPO is a company’s first public share sale.
  • Apply via Mero Share (Nepal) or your broker.
  • Allotment can be by lottery when oversubscribed.
  • Evaluate the business, not just the buzz.

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#IPO#investing#beginners#Nepal#primary market
FAQ

Quick answers.

How do I apply for an IPO in Nepal?

Through Mero Share using your Demat account and a C-ASBA-linked bank account. Applications are submitted during the IPO window.

Are IPOs a good investment for beginners?

They can be a simple entry point, but not every IPO rises on listing. Evaluate the company’s fundamentals rather than following hype.

What happens if an IPO is oversubscribed?

When demand exceeds the shares on offer, allotment may be done by lottery, so you might receive fewer shares than you applied for — or none.

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