Producer: Priyanka Das Editor: Mohit Bisht

9 Essential Tips For Beginners Before Investing In IPOs

Basics: Know the basics of how IPOs work, including the process of a company going public, how shares are offered, and how investors can participate.

SEBI regulations: Understand SEBI guidelines and regulations regarding IPOs, as they outline the disclosure requirements and other important aspects.

Understand the business model: Analyse the company’s operations, financials, and future prospects.

Grey Market Premium: The grey market is an unofficial market where IPO shares are traded before the official listing. It indicates the expected listing price. However, note that this information may not always be accurate.

Review the red herring prospectus: This document provides detailed information about the company, its finances, and the IPO process.

Be aware of the market sentiment: IPOs often experience a temporary price surge due to hype. Be cautious of overpaying.

Choose a reliable broker: Select a broker with a proven track record and expertise in IPOs. Ensure the broker offers a user-friendly platform for IPO applications. Compare brokerage fees and other charges.