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IPO Investment and Its Impact On Investors Portfolio

 
  By : , Hyderabad, Andhra Pradesh, India       19.5.2018         Mail Now
 

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.




TAGS: IPO Investment,   IPO,   Initial Public Offers,   IPO stocks,   investing in stocks,   shares of companies,  




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