IPO Stocks 2024 – Investing in IPO is one of the most easiest thing for an investor when it is considered for high returns or high listing gains. Considering a situation where after investing in more than 5+ IPOs an investor received 20% of his wealth appreciation with IPOs and later on holding such stocks he lost about 35% of his wealth later onwards . So , the question is does all IPOs are well valued and whether IPOs in 2024 are worth to be hold for long time or not.
In this article ,we shall be discussing more about how you can be aware about not profitable IPOs or overvalued IPOs and about holding stocks of IPO for long term or keeping them short for short term gains . Also ,we shall be discussing about what is the good source of advice that you can rely before investing in any IPO.
IPO Investment Important Opinion
IPO investment is mostly profitable when a company with strong financials and good business performance gets listed on NSE and BSE in India . Investing in IPOs is happening since long , but young traders and investors nowadays are getting trapped in most of the IPOs and their valuations considering their short term gains .
IPO investment could be highly risky if you are made to invest lakhs in lakhs of stocks and in cases where the stock is listed at an overvalued position where on the first day of trading it slashes down giving negative returns where it experiences profit booking .
But some IPO come with strong fundamentals and once they are listed they provide very high returns . You can invest any IPO stocks with investment of Rs 15000 to even Rs 2 lakh or Rs 5 lakh depending on the price and offerings.
IPO Risky or Profitable
IPOs are very risky . Before listing you can check most of the stock performance before listing and their pricing on the official website of stock brokerages likes Zerodha or Groww app or various stock websites online . IPOs could be risky if the price of listing is high and the price slashes the day of listing .
Even their could be cases , where the stock is listed on half the offer price which can be the case of overvaluation as considered by SEBI.
So , if you are investing in any IPO you must consider the grey market price of the company and also expected price of listing from few market analyst.
Do your really check Company future targets before investing in IPO ?
IPOs are mostly considered as an opportunity to invest in high strong fundamental strong which are made for sale on low cost which in most of the cases will grow to about 100 to 400% in few years which no other asset class can offer.
For instance , the stock tata technologies offered at pricing of 500 or so , was listed at the price of 1200 and comes with a strong background of tata group to invest for long term . So , before investing in any IPO or selling stock of IPO after receiving allotment you should consider the company fundamentals or revenue for atleast 2 quarters to decide whether to sell the shares or not .
What you can do before investing in an IPO ?
The most crucial steps that you must undertake before investing in any IPO :
- Consider advice of Anil Singhvi , Managing Director of Zee Business at priority .
- Check PE Ratio and financials of company.
- Check competitor pricing of shares and future prospects of company.
- Check for Revenue and Net worth growth of company .
What is the best advice you can take for Investing in an IPO ?
The best advice you can take for an IPO is about its listing from market experts like Anil Singhvi working with Zee Business . Also , you can consider growth of company year by year and can predict for their future based on their past performance.
Think of investing in any company as an asset and not as a trading instrument .
IPO 2024 are Risky or worth Investing ?
IPOs are risky as well as worth investing because if you invest in any share without knowing its financials and networth then you can parking your money in a money eating machine which end you up loosing your capital . But in long term you can keep the money invested in such stock to recover your losses.
IPOs are worth investing because their is no opportunity in the market other than a huge market fall which can make you earn good with investing in any stock at a price at which it is listed or first traded in the market . Considered last few years , most of the IPOs within one year of their listing gave about 20% returns on their investment.
Right Time to Exit an IPO Stock
For an investor and a trader , the right time to exit any stock is to do on receiving a 10% return on the stock or on achieving a particular target like education or medical emergency or at the time where the company do a buy back or you need money.
The best advice would be keeping the returns fixed at particular percentage is the best exit point for an IPO.
So , never invest in any IPO considering advice of any friend or any relative only market experts like Anil Singhvi knows all the insider practises of such companies or you can also invest in the company by considering the company performance in the last previous 3 years. So you must invest and hold stocks alloted in an IPO.