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IPO- Initial Public Offerings

If you wish to take exposure in companies that are new to the equity market, IPO is something that you should go for. IPOs are first sale of stock by private companies that are officially becoming a publicly traded company.

There are several reasons   to a company going public but often it is related to raising additional funds, increasing liquidity and improving the brand awareness.

IPOs are historically known for offering extremely well in the aftermarket and are much sought after investment opportunities.

Benefits:

  • Ability to make good returns in a short period of time
  • Help investors diversify among various industries
  • Investor proclaim an opportunity to be a part of growth story
  • Endow you with an opportunity to make profit on listings

Factors to consider before investing in IPO:

  • Company's business and financial outlook
  • Principal risks of the business
  • Adequacy of internal financial reporting and accounting controls
  •  Company's governance structures
  • And lastly company's willingness to accept the need for transparency and disclosure that go hand in hand with being a public company