Finding an IPO’s Potential

Evaluating an IPO Beyond Financial Metrics

The expedited listing of IPOs within a mere three days of closing the issue underscores a prevalent trend among investors who are eager to capitalise on profit opportunities quickly. This trend often involves a heavy reliance on easily accessible factors, primarily focusing on financial metrics. However, what if an investor is looking to identify a promising IPO investment opportunity that transcends conventional financial metrics? Mandar Wagh highlights the importance of incorporating qualitative factors alongside financial metrics to make informed investment decisions, underscoring their crucial role in shaping IPO outcomes 

In the latter half of September 2023, the Indian benchmark indices came close to nullifying the gains made during the initial half of the month, marking the end of their longest winning streak since 2007. This downturn was primarily influenced by weak global cues, concerns about heightened inflation rates, surging crude oil prices, and an elevated 10-year Treasury yield. Additionally, the situation was compounded by foreign institutional investors offloading over ₹ 25,000 crore in the cash markets. Conversely, in the primary market, a different trend surfaced – one that remained exceptionally robust and vibrant.