IPO - VSRK Capital | Trusted Mutual Fund Distributor & Financial Advisory Services

October 9, 2025October 15, 2025

SEBI’s New IPO Norms: A Game Changer for India’s Mega-Caps?

The Indian capital markets have long been a bustling avenue for companies seeking growth and investors hunting for opportunities. Amidst this dynamic landscape, the Securities and Exchange Board of India (SEBI) serves as the regulatory maestro, ensuring market integrity and investor protection. Recently, SEBI announced a bunch of new norms governing Initial Public Offerings (IPOs), aimed primarily at enhancing transparency and safeguarding investor interests. For India’s mega-caps, the massive companies with substantial market capitalizations, these changes could indicate a significant shift in how they approach public listings, as analysed by VSRK Capital.

Understanding what the new norms say

SEBI’s latest directives encompass several critical areas. A key highlight is the enhanced disclosure requirement, mandating companies to provide more comprehensive business risk factors and financial metrics. As VSRK Capital notes, this move is designed to offer potential investors a clearer picture of what they are buying. Additionally, SEBI has also tightened the norms around related party transactions, aiming to minimize conflicts of interest and ensure that shareholders value isn’t compromised by opaque dealings. An area where VSRK Capital has long emphasized as a critical zone for sustainable growth.

Another noteworthy change that can be seen is the increased scrutiny on the utilization of IPO proceedings. Companies are now required to provide detailed plans and timelines for deploying raised capital. One such is ensuring that funds are channelled towards growth focused actions rather than wasting it away unused or being misallocated. VSRK Capital highlights that this focus on capital discipline could drive more responsible corporate behaviour across the board.

What are the implications for Mega caps?

For India’s corporate giants planning IPOs, these norms could be both a boon and a bane. On one hand, the strict disclosures and governance standards may elevate their operational benchmarks, fostering better corporate governance practices that align with global best standards. VSRK Capital strongly believes this could potentially enhance investor confidence and command superior valuations during listings, especially as international investors increasingly prioritize ESG (environmental, social and governance) factors.

On the other hand, the increased regulatory burden may lengthen the IPO process and elevate compliance costs. Mega-caps, with their complex structures and countless business lines, might find the enhanced disclosure requirements particularly challenging. However, VSRK Capital observes that their vast resources and established governance frameworks position them better than smaller entities to adapt swiftly and leverage these changes to their advantage turning compliance into a competitive differentiator.

Understanding the Investors Perspective

From an investor’s standpoint, SEBI’s new norms are a positive step toward making information accessible to everyone and leveling the playing field. Enhanced transparency reduces unfair advantage, empowering investors with the insights needed to make informed decisions. According to VSRK Capital , the focus on tough governance standards may also mitigate the risk of corporate scandals, boosting trust in the market ecosystem. A key factor for attracting long term capital.

Moreover, with mega-caps often spearheading market indices and attracting significant institutional interest, their adherence to improved norms could set benchmarks for the broader market, driving overall quality improvements in listed companies.VRSK Capital emphasizes that this “trickle down” effect could benefit all stake holders, from retail investors to pension funds.

Impact on market in broader terms

While the immediate focus is on mega-caps, SEBI’s norms could have ripple effects across the market. Smaller companies, though initially shaken by compliance demands, might gradually embrace enhanced governance as a competitive edge in attracting investment. VSRK Capital suggests that early adopters could differentiate themselves by demonstrating commitment to transparency, even if it required short term investment in compliance.

Additionally, the emphasis on proper utilization of IPO proceedings may lead to a more disciplined capital allocation culture, fostering sustainable growth and innovation within the corporate sector. VSRK Capital notes that this shift could reduce speculative investing and encourage companies to pursue projects with clear long term value, aligning with India’s goal of becoming a $5 trillion economy.

Conclusion

SEBI’s new IPO norms undeniably represent a paradigm shift in India’s equity landscape. For mega-caps, these regulations offer an opportunity to reaffirm their market leadership through transparency and robust governance. As these giants navigate the new regulatory terrain, their evolution could set a precedent, ultimately strengthening the Indian capital market’s credibility and attractiveness on the global stage – a vision VSRK Capital shares.

In this transformed environment, both companies and investors must embrace a mindset of good vigilance and its adaptability, ensuring that growth and integrity go hand in hand as India strides confidently towards its new age of economy and its future aspirations. As VSRK Capital concludes, the future of India’s capital markets depends on balancing innovation with accountability and these norms are a critical step in that direction.

FAQs

How might SEBI’s new norms affect the timeline for companies planning to go public?

Companies may face extended timelines due to more rigorous disclosure and compliance requirements, necessitating a thorough preparation.VSRK Capital advises that proactive planning and early engagement with regulators can help mitigate delay

Do these norms apply to all IPOs, or just mega-caps?

All IPOs, but mega-caps (large companies) are more impacted due to their scale and public scrutiny.

Will smaller startups struggle under these norms?

Yes, compliance costs may deter smaller firms, potentially favouring larger, well-prepared issuers.

Are there benefits for smaller companies in adhering to these enhanced norms?

Yes, adopting robust governance can improve investor confidence and potentially attract more investment, offering a competitive advantage.VSRK Capital highlights that smaller firms that prioritize transparency may outperform peers in the long run.

How does the greenshoe option benefit investors?

It prevents sudden price drops post-IPO by allowing companies to stabilize demand.

Can promoters still manipulate valuations?

Less likely, thanks to the price band rule. But creative accounting could still be a loophole.

Will these changes impact foreign investor interest in Indian IPOs?

Likely positively, as enhanced transparency and governance align with global investor expectations, potentially increasing foreign capital inflows. VSRK Capital notes that international investors increasingly view India as a maturing market, and these norms could accelerate that perception.

When do these norms come into effect?

Most are already live, with gradual implementation phases for disclosures.

September 29, 2025October 15, 2025

How to Increase IPO Allotment Chances Smartly

IPOs (Initial Public Offerings) attract huge attention — and sometimes huge disappointment — from retail investors. When an IPO is oversubscribed, allotment to retail applicants is often done by a lottery. That’s why many retail investors ask how to increase IPO allotment chances and look for proven IPO allotment tips retail investors can actually use.

This guide explains why IPO allotment is lottery-based, the exact mistakes that cause rejections, real IPO examples with oversubscription statistics, and step-by-step tactics you can implement right away to improve allotment chances technically.

Quick Reality Check: IPOs Can Be Brutally Oversubscribed

A few recent Indian examples show how fierce demand can be:

Nykaa IPO: Oversubscribed about 82x, meaning demand outstripped supply many times over — a stark reminder that even well-known consumer IPOs may leave retail investors empty-handed.
Zomato IPO: Faced massive demand, with total subscription running into dozens of times the issue size.
LIC IPO: India’s largest IPO was oversubscribed roughly 3x overall, with the policyholder/reserved quotas in IPO allotment seeing even higher competition.
Paytm IPO: Oversubscribed 1.89x overall, though retail response was more cautious than LIC and Zomato.
SME/Small-cap IPOs: Some smaller issues have been oversubscribed more than 200x, showing how even relatively lesser-known companies attract frenzied bidding.

These examples tell you two things:

IPO allotment is often a numbers game.
Understanding the rules and process gives you a practical edge.

Lottery System Insights: Why IPO Allotment Is Lottery-Based

When demand exceeds the available shares, regulators and exchanges require fair allocation mechanisms.

For the Retail Individual Investor (RII) category — typically applications up to ₹2 lakh — allotment is commonly done by a random selection (a lottery), so each valid retail application has an equal chance of receiving at least one lot.

That’s the essence of why IPO allotment is lottery-based: fairness under scarcity.

Lottery-Style Allotment Insights to Remember:

The lottery equalises small investors; one valid application = one ticket.
Bidding for more lots under the same PAN rarely increases your odds in an oversubscribed IPO.
Certain categories (QIBs, NIIs/HNIs, employees) have separate pools and different allocation methods.

The Top Practical IPO Allotment Tips Retail Investors Should Follow

Below are the highest-impact, practical tips you can apply today. Each tip includes a short rationale and action step.

1) Apply Through Multiple Demat Accounts (Different PANs) — Legally

Why: Each unique PAN equals a separate entry in the retail lottery.
Do: If family members (spouse, parents, adult children) want allocation, submit separate applications from their accounts — only with unique PANs.

2) Split Large Bids Into Minimum-Lot Applications

Why: In a lottery, the number of valid entries matters. One big bid under one PAN rarely helps in an oversubscribed issue.
Do: Apply for the minimum lot across multiple eligible accounts.

3) Check and Use Reserved Quotas in IPO Allotment

Why: Some IPOs reserve portions for employees, policyholders, or anchor investors, which may see less competition.
Do: If you qualify for reserved quotas in IPO allotment, apply there for better odds.

4) Apply Early for IPO — and Bid at the Cut-Off Price

Why: Early submission reduces last-minute UPI/portal failures; bidding at cut-off ensures your application is valid.
Do: Always apply early for IPO and select the cut-off price.

5) Use Separate UPI IDs for IPO Applications

Why: Duplicate UPI mandates across applications can lead to rejection.
Do: Use separate UPI IDs for IPO applications if applying via multiple accounts.

6) Use ASBA and Keep Funds Blocked Correctly

Why: ASBA (Application Supported by Blocked Amount) ensures funds are blocked but not debited, preventing payment rejections.
Do: Make sure the bid amount is available and blocked until allotment.

7) Improve Allotment Chances Technically: Accuracy + Timing

Why: Many rejections are technical (wrong PAN, Demat errors, UPI issues).
Do: Double-check all details. This is where you can improve allotment chances technically.

Technical Rejections: Common IPO Application Mistakes to Avoid

Many investors lose out not because of luck but due to avoidable technical errors. Here’s what causes technical rejection IPO and how to avoid technical rejection in IPO:

Duplicate PAN → automatic rejection.
✅ Fix: Use unique PANs for each application.
Duplicate UPI IDs → blocked mandates.
✅ Fix: Always use separate UPI IDs for IPO applications.
Insufficient Funds in ASBA Account → rejection.
✅ Fix: Keep the full bid amount available.
Wrong Demat or Bank Details → invalid application.
✅ Fix: Verify Demat number and IFSC code.
Late Submission / UPI Timeouts → missed chances.
✅ Fix: Apply early for IPO to avoid rush-hour errors.
Wrong Investor Category → counted in wrong pool.
✅ Fix: Know the thresholds (retail ≤ ₹2 lakh).

By keeping track of these IPO application mistakes to avoid, you drastically reduce the risk of rejection.

Real Numbers: How Splitting and Multiple Entries Can Help

Assume:

IPO retail allocation: 1,00,000 shares
Minimum lot: 50 shares → 2,000 possible retail allotments
Retail applications received: 200,000 (i.e., 100% oversubscribed)

If you submit one application, you have 1 ticket out of 200,000.
If you submit three applications (different PANs), you have 3 tickets — tripling your chance.

This simple math illustrates why IPO allotment tips retail investors must focus on multiplying valid entries.

Bonus: Small Things That Compound Into Better Odds

Track IPO calendars and apply early.
Use reputed brokers with stable UPI integrations — lowers the risk of what causes technical rejection IPO.
Study lottery-style allotment insights from past IPOs like Nykaa, Zomato, and Paytm.

Conclusion — Strategy + Discipline + Luck = Better IPO Outcomes

There’s no magic bullet to guarantee allotment — by design, retail IPO allotment is partly random. But you can control many variables: apply early for IPOs, bid at cut-off, use separate UPI IDs for IPO applications, split large bids across accounts, leverage reserved quotas in IPO allotment, and understand IPO application mistakes to avoid.

👉 In short: Strategy increases your valid entries, discipline keeps them valid, and luck decides the rest.

💡 Think of it as maximising your tickets in the IPO lottery while ensuring none get invalidated.

Follow these steps and maximise your chances in the next big IPO!

FAQs

Does applying on Day 1 vs Day 3 of an IPO matter?

Yes. While allotment is based on lottery, applying early for IPO helps avoid UPI glitches, fund blocking issues, or technical rejections that often occur on the last day.

Can I apply in both retail and HNI categories?

No. You must choose your category based on investment size. If your bid exceeds ₹2 lakh, you fall into the HNI/NII category, not retail.

What causes the technical rejection IPO most commonly?

The biggest reasons are duplicate PANs, duplicate UPI IDs, insufficient funds, or incorrect Demat/bank details.

Do large applications improve chances in oversubscribed IPOs?

Not in the retail category. IPO allotment is lottery-based, so one valid lot application has the same chance as a bigger one in an oversubscribed issue.

How can retail investors improve allotment chances technically?

By avoiding errors, double-checking details, keeping funds ready, and using separate UPI IDs for IPO applications.

Are SME IPOs easier to get allotment in?

Sometimes yes — but many SME IPOs are oversubscribed more than 100x, making them even tougher.

August 7, 2023

Paradeep Phosphates Ltd. IPO Snapshot

About the Company:

Paradeep Phosphates Ltd. (PPL) is primarily engaged in manufacturing, trading, distribution and sales of a variety of fertilizers such as DAP, three grades of Nitrogen-Phosphorus-Potassium (“NPK”) (namely NPK 10, NPK-12 and NP-20), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid (“HFSA”). It is also engaged in the trading, distribution and sales of Muriate of Potash (“MOP”), Ammonia, Speciality Plant Nutrients (“SPN”) and City compost. PPL’s fertilizers are marketed under key brand names such as ‘Jai Kisaan – Navratna’ and ‘Navratna’. The Company was incorporated in 1981. Zuari Maroc Phosphates Private Limited (“ZMPPL”), a joint venture of Zuari Agro Chemicals Limited (“ZACL”) and OCP Group S.A. (“OCP”), currently holds 80.45% of the equity share capital of the Company, with the balance being held by the Government of India.

PPL distributes products across 14 states in India through various private and institutional channels, as of March 31, 2022. As of the same date, it has set up a network of 11 regional marketing offices and 468 stock points in 14 states across India. Its network comprised 4,761 dealers and over 67,150 retailers, catering to five million estimated farmers in India.

The net proceeds from the IPO will be used for the following purposes –

Objective of the Issue

To part finance its funding needs for part financing acquisition of Goa facility (Rs. 520.00 cr.)
Repayment/Prepayment of certain borrowings (Rs. 300 cr.) General Corporate Purposes

Risks & Concerns

Dependence on the performance of the agricultural sector.
Business is subject to climatic conditions and is cyclical in nature.
Operates under regulated environment, so any change in government policies could adversely affect our business.
Shutdowns in our manufacturing facility or underutilization of manufacturing capacities could have an adverse effect on the business.
Any delay to acquire the Goa Facility or any acquisition, joint venture or partnership may have an adverse effect on the business.

May 19, 2022

eMudhra Limited IPO Snapshot

About the Company:
eMudhra Limited (EML) is engaged in the business of providing services like issuing certificates, digital signature certificates, SSL/TLS certificates and device certificates, a portfolio of digital security and paperless transformation solutions, mobile application security, website security testing, etc. The company has strong digital signature certificate expertise and is the only Indian company to be directly recognised by renowned browsers and document processing software companies such as Microsoft, Mozilla, Apple, and Adobe, allowing it to sell digital identities to individuals and organisations worldwide and issue SSL/TLS certificates for website authentication.

Objective of the Issue:

The net proceeds from the IPO will be used for the following purposes –

Repayment or pre-payment, in full or in part, of all or certain
Purchase of equipment and funding of other related costs for data centres proposed to be set-up in India and overseas
Funding of expenditure relating to product
Investment in eMudhra INC for business development, sales, marketing and other related costs for future

Competitive Strengths:

Largest licensed Certifying Authority in India
One stop shop solution provider in secure digital transformation
Technology certifications, accreditations and membership in international bodies
Partnerships with leading Indian and global channel partners
Diverse, longstanding and growing customer base

Risks & Concerns:

International operations expose the company to complex management, foreign currency, legal, tax and economic
Changing laws, rules and regulations and legal uncertainties in India and other countries may adversely affect the
Significant competition from both established and new companies offering trust services, digital security and paperless transformation
Rely on data centres for efficient functioning of technology platform and any interruption or delay in service may adversely impact the
Continuing negative cash flows may adversely affect the business in the

May 16, 2022

Paradeep Phosphates Ltd. IPO Snapshot

About the Company
Paradeep Phosphates Ltd. (PPL) is primarily engaged in manufacturing, trading, distribution and sales of a variety of fertilizers such as DAP, three grades of Nitrogen-Phosphorus-Potassium (“NPK”) (namely NPK 10, NPK-12 and NP-20), Zypmite, Phospho-gypsum and Hydroflorosilicic Acid (“HFSA”). It is also engaged in the trading, distribution and sales of Muriate of Potash (“MOP”), Ammonia, Speciality Plant Nutrients (“SPN”) and City compost. PPL’s fertilizers are marketed under key brand names such as ‘Jai Kisaan – Navratna’ and ‘Navratna’. The Company was incorporated in 1981. Zuari Maroc Phosphates Private Limited (“ZMPPL”), a joint venture of Zuari Agro Chemicals Limited (“ZACL”) and OCP Group S.A. (“OCP”), currently holds 80.45% of the equity share capital of the Company, with the balance being held by the Government of India.
PPL distributes products across 14 states in India through various private and institutional channels, as of March 31, 2022. As of the same date, it has set up a network of 11 regional marketing offices and 468 stock points in 14 states across India. Its network comprised 4,761 dealers and over 67,150 retailers, catering to five million estimated farmers in India.
The net proceeds from the IPO will be used for the following purposes –

Objective of the Issue
∙ To part finance its funding needs for part financing acquisition of Goa facility (Rs. 520.00 cr.)
∙ Repayment/Prepayment of certain borrowings (Rs. 300 cr.) ∙ General Corporate Purposes

Risks & Concerns
∙ Dependence on the performance of the agricultural sector.
∙ Business is subject to climatic conditions and is cyclical in nature.
∙ Operates under regulated environment, so any change in government policies could adversely affect our business.
∙ Shutdowns in our manufacturing facility or underutilization of manufacturing capacities could have an adverse effect on the business.
∙ Any delay to acquire the Goa Facility or any acquisition, joint venture or partnership may have an adverse effect on the business.

May 6, 2022

Delhivery Limited IPO Snapshot

About the Company:
Delhivery is engaged into Logistics services, including delivery of express parcel and heavy goods, PTL freight, TL freight, warehousing, supply chain solutions, cross-border Express, freight services, and supply chain software. The company also offers value-added services such as ecommerce return services, payment collection and processing, installation & assembly services, and fraud detection. The company has proprietary technology systems that enable it to offer integrated Logistics services to a wide variety of customers. Its technology stack consists of over 80 applications for all supply chain processes. Its 164-network infrastructure includes 124 gateways, 20 automated sort centres, 83 fulfilment centres, 35 collection points, 24 returns processing centres, 249 service centres, 120 intermediate processing centres, and 2,235 direct delivery centres as of June 30, 2021. Thecompany has engineering, data sciences, and product team of 474 professionals. The company served a diverse base of 21,342 active Customers across e-commerce, consumer durables, electronics, lifestyle, FMCG, industrial goods, automotive, healthcare, and retail.

Particulars (Rs. Cr.)	31-Mar-20	31-Mar-21	31-Dec-21
Total Assets	4,357.31	4,597.80	8,429.48
Total Revenue	2,988.63	3,838.29	4,911.41
Profit After Tax	-268.93	-415.74	-891.14

Risks & Concerns
Interest Rate Risk – Exposure to the risk of changes in market interest rates relates primarily due to borrowings with floating interest rates.

Price Risk – Surplus funds are invested in various debt instruments, debt mutual funds and fixed deposits which are susceptible to changes in the interest rates or market yields.
Such changes may impact the return and value of such investments.

Foreign Exchange Risk – Exposure to the activities involved in foreign exchange revenues pose a risk from volatility in foreign exchange prices.

Credit Risk – The company is exposed to credit risk primarily through trade receivables and investing activities.

Liquidity Risk – Lack of liquidity for business operations may pose a risk for discontinuation of business operations resulting in revenue loss.

November 9, 2021

The Market is Mounting the Bull; The Economy is Yet to Get Back to The Pre-Covid Level

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At present, the investors seem to be anxious about IPO flood in the equity markets. At the happening hinge, with valuation cycles, a sensible investor will focus on sectoral valuation, as investing in growing businesses may swirl towards losses, if incorrectly valued.

Today, end-user segments like staple, finance, retail, chemicals, information technology and metals, look extremely overrated sectors which are not advisable. Considering investing in domestic-centric businesses linked to the cyclical segments of the market can mark the market both reasonably and attractively valued.

Talking about the present market condition, understanding valuations between different sectors and stocks is possible with the price to book valuation matrix which easily gives an understanding of where the market stands. As the earning cycle is picking up massively, Nifty’s price to book valuation could extend to the tune of 1 lac till 2030. Earnings growth orbit will be the vital construct in the next five to seven years.

Perceiving the current valuation across market segments hinting at some corrections. Digital and technology-related sectors look extremely over-valued with no returns to brace. In continuation to this, ESG, Electric Vehicle and specialty chemicals can liquefy materially in the near future.

Sectors which seems to be performing in the future are pharma formulations, auto & auto ancillary and banking. Since the real estate sector is picking up, consumer goods linked to the home improvement segment will gain. There comes the concept of early cyclical sectors makes the economy on the uptrend.

As an amateur principle, 70% could be allocated in equity and balance 30% in debt. It is advisable that within equity, 20% may be invested in pharma & healthcare, 50% in multi cap funds, 20% in balanced advantage funds and another 10% in small cap funds.

The position of the mutual fund industry can be depicted from the mid cap and small cap segments. Multi cap funds have defined allocations across market caps, which can be a fruitful in the next few years for making reasonably good risk-adjusted returns over the long term.

The roaring, powered by a surge of cash untethered by central banks and the rise of individual investors, eager to buy a chunk of their favorite companies. The listings and record oversubscriptions of the pulsating universe have witnessed record oversubscription and listing gains. 2021 is all set to become the biggest year for primary markets in terms of fundraising.

October 27, 2021

Should I Invest in an IPO

Many new and existing investors have been disappointed for unable to subscribe to the much talked Zomato IPO, a first by a Food Tech startup? One has not been able to grasp the opportunity because of the question that should one invest in an IPO or Buy after its listing on the Exchanges?

Huge liquidity in the economy and a horde of investors to invest given Indian businesses a raise of Rs.27.5 crores through an IPO in 1st half of 2021. Various Indian businesses are lining up for an IPO in the next few months boosted by the IPO stocks successfully listed in 2020. Gearing as much as 400% since listing in many cases and the uptrend of the stock market inject investing in an IPO an exciting opportunity for investors. With Zomato’s successful listing, there are some big names going public before the end of the fiscal year. Here are a few reasons to consider investing in the IPO.

Enjoy the first come first serve advantage. Investing in an IPO, one gets the opportunity to buy shares of a business with a high potential to grow at a lower price. The IPO is a chance to make a short-term profit and increase your wealth in the long term. What’s more, the share prices may rise sharply after listing on the stock exchange.

Fulfill your long-term objectives. Equity investments are likely to offer high returns in the long term. When investing in an IPO, one must wait for momentous gains. The amount earned in a few years will help fulfil financial goals. And, if you’ve managed to pick a worthy, you will near to buy your dream home.

The prospectus includes transparent information about the company, its valuation, the number of shares offered to the public and the price per share. As an investor, one has access to real information. However, once listed, share prices vary based on dynamic market changes and the best price stockbrokers can offer.

Buy at a bargain price and earn big later as the IPO price band is usually the lowest a business offers to the public. In some cases, companies offer their shares at discounted prices, which is why many investors invest in an IPO. If you miss out on the investment, the stock prices may rise sharply, and you may find it hard to buy.

Does this mean that IPO is always the right choice? VSRK says, it is not always peachy-keen, as there can be an IPO that failed and did not offer the returns investors expected for each successful IPO. If one is not afraid of the wait and watch the play, then waiting for the stock to list on the exchange would be just your cup of tea. In such cases, buying when the shares are cheap makes perfect sense, but investing when prices vault-up means paying more for unworthy.