Tata Tech, Flair Writing, Fedbank Financial, Gandhar Oil Refinery, IREDA IPO: Check out this FAQ before investing
Tata Technologies Ltd, Flair Writing Industries Ltd, Fedbank Financial Services Ltd, Gandhar Oil Refinery India Ltd, and Indian Renewable Energy Development Agency Ltd. This has led to many questions about IPOs. Livemint answers questions like how to apply for an IPO, what to keep in mind while buying an IPO and more.
If you are a first-time investor, you will need to open a demat (dematerialised) account with a depository participant firm. You can open a demat account by applying online with any brokerage firm of your choice. Once your demat account is active, you can directly bid for the IPO or ask your broker to make the transaction for you.
"A solid balance sheet, track record and potential for growth, and profitability are the most critical areas to look at for investors considering to invest in an IPO," said Sunil Shah, Director at Khambatta Securities Ltd. Also, "how effectively a company executes its strategy and future plans depends most on its promoters, management and the leadership team," Shah added. This is going to decide how its shares are going to perform in the Indian equity market.
"IPO is a good way to invest as it gives the opportunity to enter a company of high potential at the very first level. Also, it gives several options of either holding the IPO from a medium to long-term perspective or exiting on listing gains," said Ravi Singh, Founder at Finvest. An IPO's lot size means the minimum number of shares an investor will buy in a single transaction.
When applying for an IPO, you will need to buy at least one lot, which can hold multiple shares of the company you are applying for. You can buy more than one lot size when applying. For example Tata Technologies IPO's lot size was 30 shares in each
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