Amit Sethi
IPOs are a popular investment tool for wealth creation; the company deducts the money from the investor's bank account upon allotment of shares.
A retail investor can participate in an IPO with or without a demat account; however, they will need it for trade later through stockbrokers.
Ensure the company is financially robust and has growth prospects.
Researching the company's Red Herring Prospectus (RHP) can assist in selecting the appropriate IPO.
Separate the funds for IPOs and regular expenses to ensure you have enough money to meet your everyday needs.
People who invest for a listing benefit exit the stock after booking profit on the listing day.
Long-term investors remain invested even at higher premiums.
Grey market premium (GMP) provides the expected IPO listing price. When oversubscribed, seniors can use spare funds to invest in IPOs.
Compiled By Himani Verma