What are the key factors to consider before investing in IPOs

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The mega IPO rush is showing no signs of slowing down. The RBI has said that the year 2021 could be the year of IPOs. Over 38 IPOs have hit the d-street already this calendar year. These companies have together raised a whopping Rs 71,800 crore in 2021. In addition, 25-30 more companies can launch IPOs in H2 2021.

Money9 lists out top things to consider before you plan to invest in the upcoming IPOs

– Learn the past to understand the future

– Check the company’s profile and background

– Check on previous funding

– Check on the company’s valuation

– Compare its price with peers

– Evaluate whether it is for short term or long term investing

– Do the thorough research

– Reads the Fine prints of DHRP

– Be cautious of oversubscriptions