The primary stock market provides investors with the opportunity to purchase shares at a reasonable price before its upcoming IPO listing price. Along with this, retail investors get to enjoy discounted rates when applying for the Upcoming IPOs. Holding on to the shares also provides the ability to benefit from any success or growth the company shows in its futures.
Some of the key benefits of investing in IPOs include:
1. Purchase stock is the lowest possible price
2. Short-term profits with minimal risks.
3. Ability to achieve long term financial goals.
4. Stress-free ASBA process
5. Ability to benefit from the company’s growth.
6. No brokerage charges when applying for new IPOs.
While the pandemic had an adverse effect on the country’s stock market and economic growth, many companies have gone to SEBI with the certifications and permissions for releasing their IPOs. It can be quite fruitful for the investors, as they can purchase the stock at low prices and benefit from the company’s growth.
IPOs offer great opportunities to build wealth. Some of the upcoming companies can improve the market forever. Once an investor has spotted a winner, they can enjoy the benefits of the company. However, investors must realize that sometimes IPOs do not do well. Before investing in IPOs, investors must conduct thorough research about the company.
Some of the points they must look into are:
1. Company’s fundamentals
2. Market timing
Along with this, investors must also consider their risk profile. If they have a low-risk profile, then refraining from IPOs would be a better option.
Some of the top IPOs that investors must keep an eye out for include:
1. LIC IPO
2. Kalyan Jewellers