How to Sell IPO Shares

The companies are racing to get listed on the stock exchanges now. This is the reason investors are now exposed to a lot of IPO investment opportunities. If you get the IPO allotment, you need to sell it to make profits. Now comes the question: How to sell IPO shares?

IPO selling gives a lot of investors the chance to earn great profits as has been recorded over the past few years. Once you apply for an IPO, you have to wait for its listing to sell it effectively in the stock market.

Let us now have a look at the process of IPO shares selling.

How to Sell IPO Shares In Secondary Market

IPO is a road map for a private company to get listed in the stock market. When the company finally gets listed on the stock market, it gets to the secondary market. So, you can sell the IPOs in the secondary market, only after the IPO listing.

IPOs are listed around 3 days after the allotment of shares. So, if you are allotted the shares of an IPO, you can sell them in the secondary market whenever you like.

But what if you are not allotted the IPO shares? Can you still sell IPO shares in the secondary market? Yes, you can. Just like you trade the normal securities, in a similar fashion, you can sell the IPO shares as well.

You can follow the given steps to do the same.

• Open the app of your stockbroker. You can easily sell the IPO shares using the Jiffy app by Choice.
• Now in the search bar, look for the company shares. You can add the same to the watchlist as well. This helps you to keep an eye on the fluctuating prices.
• Click on the sell option. A selling window will appear on the screen.
• Add the quantity, price, and order type.
• Now click on a sell order.
  
  

In these easy steps, you can easily sell the shares in the secondary market anytime after the company gets listed in the stock exchanges.

But the question here is, can we sell IPO shares on listing? The answer is yes, you can. Let us have a look at the process.

How to Sell IPO On Listing Day?

A lot of people invest in the IPO for listing gains. What does this mean? The IPO listing price is different from the issue price.

Wondering how IPO listing price is decided.

Well, for this there are a lot of factors like grey market premium, demand, supply, company’s objectives that have a role in determining the final price of the IPO.

If you get the allotment of the IPO at a lesser price and the listing price is higher, you can immediately make a profit with the listing price.

Just like the other shares are traded, the IPO shares are also traded in the stock exchanges. The trading of the shares on a listing day starts at 10 AM, instead of the general share market timings from 9:15 AM.

After the IPO is listed and you have the shares, you can sell them using the Jiffy app.

Simply select the shares that you want to sell, and click on ‘sell’. Now enter the quantity, price, and order type.

On successful verification, your shares will get sold in the share market.

But is there any way where you can sell the IPO shares before they are listed in the market? Let us have a look at this.

How to Sell IPO Shares In Grey Market

You can effectively sell the IPO shares before they are allotted or listed in the share market in the grey market. Grey market is an unregulated market wherein the investors can sell their IPO shares at a higher price to the ones who are willing to pay.

Since it is an unregulated market, there is no official platform to sell your IPO shares in the grey market. You have to contact a dealer who in turn will help you in selling your shares.

• Any individual who has a Demat account is eligible to apply for an IPO. Now if this investor does not require the shares anymore, he will approach the grey market.
• A local dealer can now put it up for sale in the grey market.
• The decision on the price is based on the demand and supply of the IPO shares.
• Now once you sell the IPO shares, you will receive a grey market premium from the buyer.
• If you get the allotment of the shares, then you have to give the shares irrespective of profit or loss to the buyer.
• Just in case you don’t get the IPO shares, you can still enjoy the little premium that you got.

So, this is how you can sell IPO shares in the grey market.

How to Sell IPO Application

Apart from IPO shares, you can also sell the entire IPO application in the grey market before the listing of the company.

The IPO applications are sold in a similar way as the IPO shares. You need to contact a local dealer if you want to sell an IPO application.

You will receive a premium amount that you can keep even in the case where the shares are not allotted to you.

The GMP plays an important role in determining the listing price of the IPO. Usually, the higher the GMP, the higher are the chances for an IPO to perform well on a listing day.

The seller of an IPO application is usually the one who is not expecting a lot from the IPO. And a person who thinks that the IPO is undervalued will definitely pay a higher price to get the hang of the IPO, just in case.

Conclusion

So, you can sell your IPO shares to get great profits on your IPO application. Even if you have not applied or allotted the shares of an IPO, you can still trade it in the secondary market. But remember that you can start trading in IPO shares only after the shares are listed on a listing day.

Apart from this, you can also sell the shares before the listing day. You can do it in the grey market and earn profits through premium by selling your IPO shares and IPO applications as well.

If you are willing to apply for an IPO, you need a Demat account. Therefore, open a Demat account today!