In a hyped-up IPO market, what is the best way to play the game in 2025?

Long-term investors should only invest in an IPO when the company's fundamentals are strong and valuations reasonable

India emerged as the global leader in terms of the number of initial public offerings (IPOs) in 2024, according to a recent report by the Pantomath Group, a leading financial services conglomerate. It hosted twice as many IPOs as the United States and two-and-a-half times the number in Europe. Altogether, 76 Indian companies raised Rs 1.3 trillion through the IPO route in the first 11 months of 2024. Investors planning to invest in IPOs in 2025 should be cognisant of both the risks and the opportunities.

 

Key risks in IPOs

 

In 2024, IPOs received an overwhelming response. Altogether, 72 out