Key things retail investors must look at before investing in an IPO

The lure of owning a new piece of business is what has always driven retail investors to the new public offers. But history has been witness that the euphoria in the IPO market has not always been kind to them, with investors often ending up getting their hands singed. Although, identifying the right bets has resulted in a windfall for them.

Look no further and take the example of the recent spate of IPOs that hit the market in the first of 2021. Out of the 20 IPOs, four are trading below their issue prices while seven are below their listing prices. This also goes for IPOs that had witnessed a massive subscription.

So, what are the parameters that they must adopt before deciding whether to invest in an IPO or not?

In this special podcast by Business Standard, Ajit Mishra, VP - Research at Religare Broking and Milan Desai, lead equity analyst at Angel Broking explain in detail the key things to look at before hitting subscribe on an IPO