Basics of Capital Market

Steps to Invest in IPO with Tradebulls

    Things to remember while applying for an IPO

    "No need to issue cheques by investors while subscribing to IPO. Just write the bank account number and sign in the application form to authorise your bank to make payment in case of allotment. No worries for refund as the money remains in investor's account."

    An IPO stock is an investment in general, so you have to consider most of the secondary market analysis here too. Since the public forums have not enough information, you should check out the prospectus of the IPO shares carefully or discuss it with a share market expert. Here are a few factors that you need to check before applying for an IPO investment:

    You should check out whether the growth rate is sustainable or not. Higher earnings growth reflects in higher P/E valuations, thus makes earnings critical. Any valuation (P/E ratio) assigned to the company in the present-day must be justifiable in terms of the future earning prospects in the coming 3 to 5 years.

    Certainly, one would want to invest in a company that has enough fame but with limited revenue and elusive profits. Unless the revenues and profits are expected in the coming years to foster the valuation, investors may not be too amused about that company.

    How are the earnings likely to grow?

    Industry P/E benchmarks

    Understand the company business model in detail

    Is the IPO premium justified?

    Cross-check on different platforms before investing in an IPO


    What is an Initial Public Offering?

    Why are IPOs conducted?

    How can I apply for IPO?

    Can I send multiple applications for one IPO?

    What are categories in which IPO allotment applications can be made?