Is It good to Invest in IPO in India
IPO – initial public offer is the first time that company ‘s stock offered to the public.
IPO is 1st step in Stock Market. IPO are often issued by smaller and younger companies seeking fund to expand there business.
For small investor to Big HNI IPO investment is always lucrative. In Past so many IPO gives 30 – 50 % profit in 15 days time. And after ASAB comes in picture IPO investment made easy for small investor.
Before investing in IPO always keep in my below points.
Risk in IPO?
Yes, as it’s connected with stock market Risk is involved. But if you are invest in IPO which is good fundamentals and price band matched with his valuation then risk is lesser.
Don’t Jump Directly without knowing IPO – Company
It’s hard enough to analyze the fundamentals and technicals of an established company. A company about to IPO is even trickier to analyze since there is virtually no historical information to draw on. Your main source of data is the red herring prospectus, so make sure you examine this document carefully. Look for the usual information, but also pay special attention to the management team and how they plan to use the funds generated from the IPO.
Before applying IPO always check market sentiments. If market not stable or bearish then chance to lose money in good IPO. Other side if market is bullish then you will chance to get profit in highly priced IPO also.
Gray Market Activities
Yes, Gray premium also one indicator where you can judge IPO listing approx. price. Gray market activities totally base on listing price so don’t jump in to IPO base on Gray premium if you want to hold stock for long term.
You can also use over IPO Calendar for upcoming IPOs.
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