5 Strategies for Investing in IPOs!

Podcast Duration: 04:50

Hello Friends, welcome to another podcast by Angel One.

2020 has definitely been a year of highs and lows. Ye wave stock markets me bhi dekhne ko mila . After relatively low new market activity, in the later months India has seen an unprecedented rise in trades and investments.

Sirf 2020 me hi India mein 24 lakh naye Demat accounts khole gaye. Fascinating, isn’t it?

Kai large scale companies ne iss saal IPOs offer kiye hai aur karne waale hain. IPOs yani ki Initial Public Offering. It is the very first set of shares of a company to go public. Companies for the very first time, apna business external investors ke liye open karte hain. Aur unki shares exchanges par list hoti hai, to be traded. Iss process ko investors also call ‘going public.’

IPO ke dauran shares khareedne se pehle aapko company ke business, uske competitors ka business, sector me koi changes jaisi details ko thoroughly research kar lena hoga.

Chaliye, let’s go over some strategies that will help you invest in the right IPO and build wealth:

Choose a company with good financial history

Ek company ke IPO offering se pehle ki performance jaan lena zaroori hai. Agar company ki growth steady rahi hai, tab aap usko consider kar sakte ho. Agar company ki overall financial performance buri rahi hai ya fir company IPO ke raised capital se apne loans repay karna chah rahi hai, toh yeh IPO achha investment nahi kehlata.

Study the company prospectus and promoters

Kisi bhi company me invest karne se pehle, Securities and Exchange Board of India (SEBI) website par uss company ki prospectus zaroor dekh lijiye. Issey aapko yeh bhi pata chalega ki aapke invested capital ko company kiss tarah use karne waali hai. Kya company iss naye capital se naye markets me enter karegi? Ya fir future expansion ya naye product plans kya hain?

Prospectus me projected financial figures ko past performance ke saath dekh lein kyunki hamesha companies projected numbers deliver nahi kar paati. Prospectus ke alawa company ke promoters ke track record aur overall experience ko bhi ek nazar dekh lein.

Skip the IPOs where initial shareholders are looking to exit Kabhi kabhi yeh bhi hota hai ki company ke founders ya original investors IPO offering ke time ya uske baad apna share cash in karke company chhod dete hain. Iska matlab ye hai ki unhe company ke growth ki koi khaas expectations nahi hain. Aise IPOs ko subscribe karne se pehle do baar sochein.

Choose a sector that is performing well A stock is not an island. Do not consider it in isolation. Agar ek company ek growing aur active sector ke under hai toh uske future prospects bhi achhe ho sakte hain aur aapke investment vapital par aapko value mil sakti hai.

Jaise ki maan lijiye aap jis company ka IPO consider kar rahe ho, woh Agriculture sector me hai. Aapko yeh dekhna padega ki Agro sector me similar market cap waali companies kaise perform kar rahi hain. Unke stocks kaise trade ho rahe hain. And how does the future look for companies similar to the one you are going for?

If the market is doing well, wait

Jab koi market ek upward trend me ho, tab saare investors kaafi optimistic rehte hain. Nayi IPOs bhi offer hote hain aur market me bahut saare buyers hone ke wajah se bahut log inn IPOs ko subscribe bhi karte hain. Aise situation me aap kya kar sakte hain?

Well, invest only in companies with a good financial record, performance and future potential.

In strategies ke alwa aapko kuchh cheezein dhyaan me rakhne chahiye.

Kisi bhi IPO me invest karne ke liye aapko ek reliable broker ki zaroorat hogi. Kyunki achhi potential wali IPOs me participate karna mushkil ho sakta hai. Ek acchhe broker ke saath ye process kafi simple aur straightforward ho jata hai aur aapko allocation ka opppurtunity mil pata hai. Han, aur ek cheez ye hai ki aapka application form accurately aur fully fill hona chahiye. Agar aapka application incomplete submit ho jata hai, then it will be rejected. Aur ECS, yani ki Electronic Clearing Service ke through refunds wale forms toh thoda extra carefully fill kijiye. Kyunki agar aapke bank account details galat hain, aapko refund nahi mil payega.

And as usual, remember to invest keeping your risk appetite as well as wealth building goals in mind. That’s all about IPO.

To find out more about IPO, as well as other trading strategies that will help you on your journey to build lasting wealth, visit www.angelone.in today. Access insights, learn basics and keep investing with Angel One.