Tax and Profit Playbooks in IPOs: Listing Gains, Other Income, and What Retail Investors Should Watch

IPO tax and profit playbooks are in focus for Indian retail investors this season, with listing gains taxes and 'other income' profits shaping decisions around offerings like Orkla India IPO and later trades.

• Listing gains tax basics

  • If you sell listing gains within a year, you pay 20% Short-Term Capital Gains Tax on the gains ^[1].
  • If the listing price is below the offer price, some discuss zero tax ^[1].
  • Tax rules are about gains, not your salary bracket ^[1].

• 'Other income' momentum in IPOs

  • One post asks if you'd invest in an IPO where 'other income' drives profits; the discussion notes funds sold to fund listings ^[2].

• Anchor allocations in practice

  • In Lenskart's anchor book, bids topped ₹68,000 crore; anchor investors can sell 50% in 30 days and 50% in 90 days ^[3].

• Subscription status Day 1

  • Day 1 shows Lenskart’s subscription momentum: QIB quota fully subscribed, Retail quota fully subscribed; Retail applications about 80% ^[4].

Bottom line: keep an eye on how listing price compares to offer price, watch anchor lock-ins, and track Day 1 subscription signals to gauge listing upside.

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