IPO Investment Strategy 2025
Friends, you must have heard from many people that we invested money in IPO and our money doubled in a few days, so today in this blog we will talk about what is IPO and whether investing in IPO really doubles the money in a few days and how can we invest in IPO and whether some people also suffer loss by investing money in IPO.
IPO Investment Strategy 2025
What is IPO?
What is an IPO? When a company decides to sell its shares to the general public for the first time, it is called an IPO (Initial Public Offering). When a company brings an IPO, it becomes public from private and everyone can easily buy and sell the company’s shares from their demat account.
IPO Investment Strategy 2025
Why does a Company Launch an IPO?
Now the question arises why does a company bring an IPO? When a company wants to raise money to grow its business, it brings an IPO to raise money from the public.
Like there is an ABC company which has 10 factories in Haryana Punjab, now this company wants to grow its business, now to grow its business in whole India, the company must have at least 100 factories.
Now to open 100 Factores, the company must have a lot of money, now the company has two options to get money, first either the company can take a loan from the bank, and secondly the company can collect money from the public by bringing IPO and in return of money it can give shares of its company to the public.
IPO Investment Strategy 2025
How to Apply for IPO?
Now the question arises how can we invest in IPO, to apply for IPO you must have a demat account, when the IPO of a company opens then you can easily apply for IPO through your demat account, this whole process is online.
But we cannot buy shares of any one company in IPO, because here the company decides the lot size and we always have to buy shares in lots, and after applying for IPO it is not necessary that you will get the IPO, because many people apply for IPO and most of the good IPOs get oversubscribed due to which very few people get allotment.
You Can Also Read About Hello World
Friends, if a company wants to launch an IPO, then it first has to get listed on NSE or BSE, only after this the company can collect money from the public and if a company is not listed on NSE or BSE then it means that it is a private company and a private company cannot collect money from the public.
IPO Investment Strategy 2025
Benefits of IPO Investment?
Now if we talk about the benefits of investing in IPO, if you invest in the IPO of the right company then our money can double in a few days like Bajaj Housing Finance gave a return of more than 114% to its investors.
Disadvantages of IPO Investment?
But if you invest in the IPO of the wrong company, then you may suffer a huge loss, like many investors suffered losses in Paytm’s IPO.
Therefore, before investing in an IPO, it is very important for us to know about the business model of the company, like how are the fundamentals of the company, how is the balance sheet, and how much profit the company has made in the last few years.
IPO Investment Strategy 2025
If you have any question related to IPO in your mind then you can ask us in comment.
Thank You So Much.
IPO Investment Strategy 2025