Hello Hive Fam!
Hope you are doing well and having a great time wherever you are in the world.
An IPO is a process through which any company enters the stock market, and it goes public, where anybody can buy its stock. It is an initial public offering through which, before the company goes to be listed on the Stock Exchange, people get the opportunity to invest early, and sometimes it can be profitable. However, it is never guaranteed. Overall, the majority of IPO bring profitability, and that's the reason why people like to apply for those if the companies are good. And generally, a lot of people invest in IPO for the short term. It is because they can sell off just after the listing, and it is just a matter of a couple of days, which cannot be beyond one week in any case, so if the allocation is provided, there are high chances that one can make some money out of it. So in a way, it's a money-making opportunity in the short term.
I also apply for different IPO often, but before I do, I make sure to do some research and study about the company. Even if it is for the short term then also I do not take it lightly because it is a money matter and when it comes about money I make sure to follow the required procedure to ensure that whatever money I am putting into something had some value so if the company is not doing good I'm not going to invest on the IPO and no matter how much hype that IPO has in the market and even I can ignore the multiplication of subscription. Sometimes a few companies get a good subscription through the initial offering, but later on, after the listing, they get less value, which is a loss-making deal. And it generally happens only when the company is not strong on its balance sheet and overall growth projection.
There are some good IPO lined up in this quarter, and some of them are really very good, which are worth investing in because the potential is high and they come from reputable brands. The list I have shared above has the one which is coming from Tata, and it is a well-known brand in the country, and after that, vwork can be another one because it is one of the companies that is also kind of doing well in its segment, as they provide working space for startups or any organisations. The Tata capital is available for pre-apply stays currently, but this should be open in general soon, and because it is part of the pre-apply so the subscription information is not available as of now. Also, most of the IPOs are subscribed more on the last day, mostly depending on the oversubscription.
Now let me share some statistics about the IPOs this year, where you can see that there are a total of 162 IPOs, out of which 87 listed in gains and 40 turn out to be a loss-making investment. So the winning R is good and about forty five percent companies have given losses through the initial offering And this is why I say that nothing is guaranteed in this market with any sort of investment but if you choose the right company to invest then the probability of profitability is very high and this is the reason why it is highly recommended to do the study and research first about the company Before investing and not just go by the market high because sometimes that can be manipulated. It's simple to trust yourself and your study and nothing else. Thank you!
✨✧✦✧✨✧✦✧✨✧✦✧✨✨✧✦✧✨✧✦✧✨✧✦✧✨✨✧✦✧✨✧✦✧✨✧✦✧✨✨✧✦✧✨
Images courtesy- Groww website
Posted Using INLEO
That 162 IPO count with only part listing in gains really hits, so I never chase oversubscription without researhc.
If the balan;ce sheet and cash flows look shaky, I skip it no matter the noise.
The odds are there favor only when pricing and promoters line up, else quick flips can bite.
I’d rather size small and let listing day tell the story :)
My wallet still has trust issues from one hype listing last year.
We share the same thought here because for my balance sheet, cash flow and the industry growths etc are some of the check points I check and it must meet for me to enable investing in any company. You're right that while it can be a good chance to earn money through IPO but it can be loss making too so need to be careful
Same playbook here. Balance sheet strength, cahs flow quality, and real industry tailwinds are the core filters for me too. I try to use the ADvantage of patience by waiting for lisitng day to settle, then compare post list price to fair value and peers and size small if it fits. Hype or oversub alone isn’t a signal, capital protection first :)
Watch out for LG electronic ipo....going to be a blockbuster
That also I am keeping an eye on and it's expected to go live on 7th Oct.
There is always manipulation in the markets, and no one wants small investors to make easy money. That's why even if you do your research correctly, you may not make a profit, but at least you increase your chances of making one. It's good to have a higher percentage of profit. Otherwise, investors would be hesitant. Thank you for this post, which explains everything thoroughly.
Absolutely. Big investors play manipulation game and they never want small investors to earn but you right said that by trying we can make some and this is why we should try
Congratulations @finpulse! You have completed the following achievement on the Hive blockchain And have been rewarded with New badge(s)
You can view your badges on your board and compare yourself to others in the Ranking
If you no longer want to receive notifications, reply to this comment with the word
STOPCheck out our last posts: