3 Golden Rules for investing in IPO’s
This is one frequently asked question in all my workshops and from my investors. Investors always think that IPO’s are the best investing options when it comes to stock market, because they think they are fishing the stock at the lowest price. Bull run markets are always favor the companies lining up for IPO’s. But there are many factors to consider them before investing in them.
During the bull market there are many IPO’s were launched with higher valuations and they are higher than the listed peers. However only few companies manages to beat the index in 3 – 5 years time frame. Many gets listed with Big Bang premium, but underperforms after that.
Investment Bankers advise companies to list their IPO’s when the markets are high, after a strong quarterly result. Timing of the IPO’s are another important factor. Investors must be careful not to pay higher price for recent and short-term performances.
Ask yourself, why you want to invest in this IPO – Is this for Listing Gains or as a long term investment. With this approach you will know when to exit.
Don’t fall for hype, IPO’s are always look like an opportunity of a hot cake in demand, do read the recent prospectus for their Balance Sheets and look out for Profits, Turn over and Revenue.
It is important for investors to look at the subscription by qualified institutional buyers for the IPO, as that gives an idea of the quality and pricing of the issue. While a very low level of subscription would mean institutional investors do not see the issue as a strong proposition.
Peer Comparison – PE -
Understanding the IPO is always fiddly for many beginners. When you follow these criteria, the decision to invest or not will become easy.
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Sathish Kumar
Mutual Fund Distributor | Author | Speaker
Whatsapp / Call – +919841058689
http://sathishspeaks.com/
*3 Golden Rules for investing in IPO’s*
*Bull run markets are always favor the companies lining up for IPO’s. But there are few factors to consider them before investing in them, click here to understand the IPO investing*
https://sathishspeaks.com/3-golden-rules-for-investing-in-ipos/
*To invest in SIP & in Mutual Funds Click the link and start your investments instantly*
http://www.assetplus.in/partner/sathishkumar
*Sathish Kumar*
*Mutual Fund Distributor | Author | Speaker*
*Whatsapp / Call – +919841058689*
http://sathishspeaks.com/
3 Golden Rules for investing in IPO’s
Bull run markets are always favor the companies lining up for IPO’s. But there are few factors to consider them before investing in them, click here to understand the IPO investing
https://sathishspeaks.com/3-golden-rules-for-investing-in-ipos/
To invest in SIP & in Mutual Funds Click the link and start your investments instantly
http://www.assetplus.in/partner/sathishkumar
Sathish Kumar
Mutual Fund Distributor | Author | Speaker
Whatsapp / Call – +919841058689
http://sathishspeaks.com/
#sathishspeaks