Should you apply for IPOs? How do you decide?

Before we talk about whether you should apply in forthcoming IPOs, let us look at the listing performance of some past IPOs.


The above table shows the spectacular listing gains that some of the IPOs have given. However, this is not the case with all IPOs as some have given modest listing gains and some even listed at a discount to their issue price. It all depends on overall market sentiment, the company’s financial performance, the valuation at the time of IPO, and other factors.

Once you analyse the points discussed in the earlier section, you need to decide whether you should apply for the IPO or not. You should be convinced with the objectives of the IPO and that the promoters and management have a clean track record following the highest standards of corporate governance. Next, if the financials of the company are sound, valuations are reasonable, and SWOT analysis is favourable, then you can proceed ahead to apply in the IPO.

You can apply for IPO using demat account provided by Niyo Money. This is accessible under the Stocks and ETFs section in Niyo Money app for the users who have already completed Mutual Fund account KYC or already invested into Mutual Funds.

More reads:

What is an IPO?

How can you apply for an IPO?

Points to remember while applying for an IPO