Here’s an indirect way of participating in IPOs through the Edelweiss Recently Listed IPO Fund.
On 15 November 2021, Sigachi Industries Limited was listed on the Indian stock exchanges at a stellar premium of 252%. It closed on the first day at Rs 603, a premium of 270% to its issue price of Rs 163. So, investors multiplied their money by 2.7 times on the day of listing itself. While Sigachi Industries Limited gave excellent returns, this was enjoyed by very few investors. The IPO got oversubscribed 101.91 times. So, for every one investor who enjoyed the allotment, many were disappointed due to no allotment.
This article will explore how you can enjoy IPO listing returns and more via mutual funds. We will focus on the Edelweiss Recently Listed IPO Fund, which gives investors an opportunity to invest in IPOs indirectly through the mutual fund route.
Why invest in IPOs?