Investing in IPOs can be exciting, but identifying the right one requires careful analysis. Here are key factors to consider before investing:
β Understand Company Fundamentals
Check the business model, financial health, and management teamβs credibility.
β
Analyze IPO Details
Is it a fresh issue (for growth) or an offer for sale?
How will the company use the raised funds?
β
Assess Valuation & Market Sentiment
Compare the IPO price with industry benchmarks.
Evaluate economic and industry trends.
β
Check Lock-In Periods
Understand insider holding periods post-IPO.
π Bonus Tip: Always read the Red Herring Prospectus (RHP) before investing!
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