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Didn't get IPO allotment? Here are 3 indirect ways to invest in newly listed companies
4 min read | Updated on September 03, 2026, 12:52 IST
SUMMARY
As an investor, everyone wishes to get an allotment of quality companies with strong fundamentals and robust potential during their public offering, but that's not even remotely possible at the individual level. However, ETFs and actively managed mutual fund schemes provide a good opportunity to participate in the IPO boom.
Indirect investing in IPOs through ETFs and mutual fund scheme provides good participation opportunity for Investors. Image: Shutterstock.
The IPO buzz is back with more than 40 IPOs listing in just two months, July and August, raising more than ₹50,000 crore in a short period of time. Additionally, the IPOs also listed with strong gains of as much as 80% in some cases. The gains have also translated into strong subscription numbers for multiple IPOs. As the headline benchmark indices deliver sluggish returns, investors turned their attention towards IPO, betting on their luck to get allotment of a few of these IPOs.
However, getting the allotment depends on luck and holds a very low probability. Additionally, not all IPOs deliver stellar listing gains; some list at a discount and receive a muted response post-listing. As an investor, everyone wishes to get allotment of quality companies with strong fundamentals and robust potential during their public offering, but that's not even remotely possible at the individual level. However, there is an indirect way to participate in the IPO boom, through active mutual fund schemes and passive ETFs. Though options are very limited, they provide a unique opportunity via an indirect way. lets explore in detail
Edelweiss Recently Listed IPO Fund
| Time frame | Scheme returns | Benchmark returns |
|---|---|---|
| 1 year | +23.4% | -6.8% |
| 3 years | +18.2% | +3.4% |
| 5 years | +16.8% | +8.7% |
| Since inception | +18.2% | +9.7% |
(Source: Direct fund returns Edelweiss MF, Date as of 02 Sep 2026)
The above mutual fund scheme is the only actively managed fund that tracks recently listed IPOs. Besides these, two passively managed ETFs track recently listed IPOs and new listings through spinoffs and demergers.
Motilal Oswal BSE Select IPO ETF
The exchange-traded fund tracks the BSE Select IPO index in terms of stock selection and mirrors the returns of the index. The stocks included in the index are based on their full market capitalization and liquidity, and should have a minimum listing history of three months. The scheme was launched recently on 25 November 2025 and holds ~71 stocks in the portfolio.
| Time frame | Scheme returns | BSE Select IPO |
|---|---|---|
| 3-months | +12.57% | +12.8% |
| 6-months | +16.6% | +17.4% |
(Source: Value Research, BSE MF)
Mirae Asset BSE Select IPO ETF
| Time frame | Scheme returns | BSE Select IPO |
|---|---|---|
| 3-months | +12.6% | +12.7% |
| 6-months | +16.6% | +17.4% |
(Source: Mirae Asset mutual fund)
In summary
The actively managed mutual fund and passively tracked ETFs provide investors a unique opportunity to participate in the IPO boom without worrying about getting allotment for every single IPO. The indirect way of participation also insulates investors from risks arising from individual investing in every IPO.
Moreover, it also provides an opportunity for investors to invest with less amount through SIPs and lump sums. Whereas an IPO application requires a minimum investment of ~₹15,000 for a single lot. In addition, it also gives an extra edge of participating in upcoming IPOs through institutional placement, which increases the probability of participation in every IPO.
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