How can an IPO help you trade stocks?

An IPO (Initial Public Offering) is a big deal in the Indian stock market since it’s the first time a private firm sells its shares to the public. This raises money and lets investors get involved. As of the year 2026, many IPOs have been present on the mainboard. Of these 103 have raised a record ₹1.76 lakh crore in 2025. An IPO can provide assistance to the investors by allowing them access to new company options that may be undervalued. This helps them make money. 

What is an IPO and what are its benefits?

The role of IPO is to turn a private company into a public one via listing it in specific places kike BSE or NSE. Its role is to boost the stock market by allowing investors to add new sectors like renewables or tech to their portfolio. Early entrance generally leads to large returns; many IPOs in 2025 saw strong listing gains even though the market was volatile. IPOs also make the market more liquid by making shares tradable and more open by showing financial information in prospectuses. Reserved quotas of 35% make sure that retail investors have fair access, which helps them develop wealth over time.

The Role of the Upcoming IPO  in Investment Plans

Upcoming IPO gives investors a chance to buy into fast-growing companies before they go public As of January 2, 2026, among of the most important impending IPOs include Fractal Analytics (an AI company worth ₹4,000 crore), Hero Fincorp (an NBFC worth ₹3,000 crore), and Bharat Coking (a coal company worth ₹5,000 crore). Together with other companies like Clean Max (renewables) and Meesho (e-commerce), they are expected to raise around ₹25,000 crore in January. The upcoming IPO helps by letting people in at base prices, which could be lower than the market average. 

How IPO Helps Your Portfolio Grow

Participating in an IPO helps the stock market by raising cash. In 2025, successful listings made an average of 20–30% gains. It helps protect against inflation because new enterprises frequently do better than older ones. Long-term capital gains are taxed at 12.5% after one year, which is a tax benefit. IPOs add variety to global portfolios for NRIs. There are hazards, though, like overvaluation or a drop in the market. Some 2025 listings traded for less than their issue price. Start with the basics of Demat and then use MTF post-listing for leverage.

How to buy an IPO? 

Most companies make it easy to get an IPO: Set up a Demat account online, link your UPI or bank account, then apply through the app for free. Keep track of your allocation and listing. Plans like Trade Free Youth of Kotak have no brokerage fees, which is great for flipping IPOs.

In short, IPOs and prospective IPOs help you in the stock market by opening up new opportunities for growth, diversity, and rewards. Use the tools available in the company to make smart investments.