Why should you invest in upcoming IPOs?

Spread the love

Is money everything? Yes, Mani can buy almost everything which can make you and your loved ones happy. Money indeed helps to run your life smoothly. Demand for money increases as one grows. When you are a kid, you had neither responsibilities nor liabilities. But when you grow up you need money to full fill your responsibilities to your family and yourself. Money is considered the most liquid form of asset.

So people tend to keep money in savings and FD, to generate wealth. The growth rate of money in savings and FD is minimal. Thus, people should try other options to grow money. The other methods of earning and developing wealth involve a high risk and reward ratio. People can invest in the stock market by applying for upcoming ipo. By investing in IPO, you have a good chance to reap a massive reward in the future.

You may think, what does IPO stand for? IPO means initial public offering. When a company decides to sell a few of its shares in the open market to generate capital, it introduces the company’s IPO in this stock market. As for the reason for investing in the stock market, you need to go through the following points written below.

  • As a means of investment: if we look at the share price history of a moderate and a successful firm, we can see the price of the share has increased tremendously over time. Over 20 years, any successful company can provide a return of 50 to 60x. It means the share price can increase 50-60 times. So it is said if you invest in any successful company, it will provide you a massive return on investment, in due course of time.
  • Aiming for short-term gain: in FD you can get a return of approx 5%. But in the case of IPO, return fluctuates. Even the least successful IPOs give a return of 5 to 10%. On the other hand, if the IPO was a huge success. You have a probability to earn a profit of 30-40%. There are many instances, where the returns were 2-2.5 times the initial amount. So you should look for a successful IPO.
  • Future prediction: a successful investor can only beat the market if he understands the market at present and predict the future. At present, the cost of petrol diesel, and gas has increased consistently over the years. You can guess the future is on clean green energy. So you can look for a company’s IPO which are interesting in green energy that is solar, tidal, hydro energy, etc. If your prediction is correct, he will reap a massive gain in the future. Does it is advisable to understand the market and then invest in IPO, to be a successful investor.
  • Target-based growth: few investors in the stock market tend to invest in shares whose price will double within three to four years. They understand the market and observe the balance sheet of a particular company. If they are prediction is correct, they will invest in those companies to double the game within a few years.


After learning the benefits of investing in an IPO, it is advised to understand the IPO process. You need to understand the process through which you can apply for an IPO. In the ipo process, you need a Demat account and a trading account. In addition, you should know the brand price and the last day for its submission.