IPO Rush: Should you subscribe or avoid?

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The year 2021 is a year of IPOs. The stock market is trading at record levels and hence the listing day gain is luring the investors in the IPOs. But how many shares do the retail investors subscribe in the IPOs that are getting over-subscribed? Mukul Malik, founder of Asset Yogi Youtube Channel, in an exclusive interaction with Money9, said most of the retail investors don’t get allotment in these IPOs. Some lucky ones, even if they get allotment, get only one lot. And no one can become rich with just Rs 15,000 they earn from a lot.

What to look for before investing in IPO?

Malik said whenever an IPO is opened for subscription, companies are often over-valued. So if a person decides to invest in these, he/she has to be prepared for an expensive purchase. An investor must spend enough time in research especially in understanding the company first. When the market performs well, everyone gets profit but one has to be ready for the fall in the market. One must invest in IPO only in terms of listing day gain. If you want to invest for a long time, then it is necessary to do a fundamental analysis of the company.