Archive · 16 Sep 2025
IPO Investing: Separating Profitable Opportunities from Risks
Imagine you're buying into a new company (IPO).
Sometimes, these companies become popular, but it's hard for regular people to get shares.
Some IPOs make money fast, but others can lose money.
This article advises selling on the listing day if aiming for quick gains.
Also, do not get swayed by the buzz.
It encourages looking at the company's long-term strength, like good finances and growth, instead of just the initial hype.
This helps you choose companies likely to grow in value over time.
Retail investors often struggle to get allotments in successful IPOs.
If aiming for short-term gains, sell on the listing day, regardless of profit or loss.
Avoid getting carried away by listing day gains and oversubscription numbers.
Consider company fundamentals such as balance sheet strength for long-term investment.
Long-term value creation relies on sustainable growth and strong financial health.
- Who
- Retail investors, Prasenjit Paul
- What
- Guidance on navigating the IPO market and avoiding potential pitfalls.
- When
- Over the long-term
- Where
- N/A
- Why
- To assist retail investors in making informed decisions in the IPO market and help them achieve long-term value creation.
- IPO Allotment for Retail
- Based on luck in oversubscribed issues
- Listing Day Strategy
- Sell on listing day for short-term returns
- Fundamentals for Long-Term
- Consider balance sheet, growth prospects, and valuation
- Overvalued IPOs
- Many listed at high premiums but fell later
- Focus
- Long-term value creation, sustainable growth