Start with IPO (Initial Public Offerings)

IPO (Initial Public Offerings)

First understand the basic concepts of IPO : What is IPO?

May be some of us are here new to this Initial Public Issue (IPO) thing. Here is a brief of how to start in IPO and earn money from IPOs:

Important points to keep in mind before investing in IPOs

  1. Check the price band of IPO and any sort of overpricing should be clearly avoided.
  2. Quality IPO’s will always give better return, so stick with the Quality and reputed names.
  3. Check Offer for Sale (OFS), we have seen many promoters/Anchor Investors taking exits through IPO route, this should be checked.
  4. Quality and ability of management of company should be checked before investment, these days markets are very cautious and aggressive towards corporate governance issues.
  5. Have a look at peer companies and sector benchmarks, if valuation is higher than industry then take a pause and think before investing.

 In the end just a suggestion not to follow the crowd and make investments in a systematic manner, Success is more about discipline than skills. Do your own diligence and study before investing in IPO’s

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