Upcoming IPOs: Essential Factors Smart Investo
Introduction to Upcoming IPOs An upcoming IPO (Initial Public Offering) allows a private company to raise capital by offering its shares to the public for the first time. IPOs often attract retail and institutional investors due to the potential for listing gains and long-term wealth creation. However, not every IPO delivers strong returns. Smart investors evaluate multiple factors before applying and later track the IPO allotment status check carefully to understand their allocation. Understanding the Company’s Business Model Before investing in any upcoming IPO , investors must clearly understand how the company makes money. Look at: Core products or services Target customers Revenue sources Competitive advantage A simple and scalable business model generally offers better long-term visibility. Financial Performance and Growth Trends Review the company’s financial statements provided in the Red Herring Prospectus (RHP). Focus on: Revenue growth over the last 3–5 years Profita...