String of IPOs lined up, study them in detail before investing in any

A bull market carries the risk that offerings could turn pricier, but their fundamentals could deteriorate

Taking advantage of the current bullish market conditions, companies have raised Rs 15,774.2 crore via initial public offerings (IPOs) between September and December 2020. The pipeline remains strong and another half a dozen issuers could launch their IPOs with offerings worth around Rs 8,000 crore in January. Investors must do due diligence before investing in them.

Watch out for risks

One key risk in IPOs arises from asymmetry of information.

“The party selling the shares has more information about the company than the investor,” says Jimeet Modi, founder and chief executive officer, Samco Securities.

Companies often do IPOs right after