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In the year 2017, a number of IPOs or Initial Public Offers has reaped huge
profit over the issue price for their investors. This probability of making huge
profit has attracted many investors in year 2018, to invest more in IPO. Many
new traders have gained the interest and started researching about the IPOs from
the scratch. If you are a beginner in this field, then reading this article can
provide you the real insight about the notion of investment in IPOs over the
regular stocks. Below are the listed IPOs that has given 100% to 500% return to
its investors.
Top IPOs that provided maximum profit to the investors
Initial public offering or
the IPO: When the private company offers the stock to the public
for the first time. IPOs are often offered by smaller or younger companies who
are seeking for capital for the company's growth and expansion. IPOs are also
offered by large companies so that their stocks can be traded publicly in an
easy way. Sometimes few companies are willing to release IPOs for the prepayment
or repayment of debts. Many people think that investing in IPOs is risky. But
there is always a great chance of high returns with high risk. So before any
kind of investment in IPO, the investor must give a thought on the following
points and must dig deep about the company overview and its financials. This
research will always help the investors to isolate the best IPO for investment.
Don't be in hurry to buy IPO of any Company
Every year, more than hundreds of IPOs are released by small, medium and large
companies. So it is always better to wait for the best IPOs that can give
maximum return on investment. You can always keep a track on the
Upcoming IPOs
every month and get to know about the companies offering IPO. In order to save
time and do proper research about the IPOs, always read the reviews on the IPO
from various reviewing website and subscribe if necessary, to get the latest
updates. There are always potential risks as well as rewards associated with
every IPO. So take your time, research and investigate well about the company's
overview and financial profile. Understand the risk before investing your money
that what are the possibilities and probability to lose.
Things to check before IPO investment:
- Try to understand WHY the company is releasing the IPO. Many companies don't
reveal the REAL objective behind any IPO.
- How the company makes money and how much the company can raise money through
this IPO.
- What are the key products and services company provide.
- About the History of the company, Quality of Management, Financial statement,
etc.
- Whether the key members of the company are experienced enough to secure the
future of the company.
Important Points to consider in IPO:
Promoters Holdings, IPO grading, Comparison with other competitors, Companies
past performance (at least 5 years), etc. It is important to have a proper
understanding of terms related to IPO such as allotment status, price band,
issue size, issue details, grey market premium, QIB, etc.
Where to find information about IPOs?
Before you decide to invest in an IPO, research about the fundamentals of the
company, its business model and look for the growth and earning potential in the
present scenario. These information or data can be easily found in Red Herring
Prospectus. You can also visit various IPO review website
to get the latest
updates.
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