How should I evaluate an IPO in India?

Evaluate an IPO in India by reviewing the company's business model, financial health, IPO pricing, industry outlook, and management quality before applying.

Is IPO investment safe for first-time investors?

IPO investment in India carries risks. First-time investors should read the Red Herring Prospectus, compare valuations, and review sector growth before applying.

What is the Red Herring Prospectus in an IPO?

The Red Herring Prospectus (RHP) is the official IPO document that provides details on the company's financials, risks, promoters, and use of funds.

Beyond the Hype…

A checklist for IPO Investors

2-minute read

The IPO market in India is buzzing - every other week, a new company is making its grand debut.

From flashy advertisements to social media chatter, the hype is hard to miss.

While the glitter attracts thousands of investors, the real question remains:

Is the company worth your money in the long run?

Here’s a simple checklist to guide you:

Know what the company does, its products, services and revenue sources
If the business model is unclear, the risk of investing increases

Review past revenue, profit trends, and debt levels in the Red Herring Prospectus (RHP)
Companies showing consistent growth with low debt usually indicate stronger fundamentals

Compare the IPO’s pricing
(Price-to-Earnings ratio) with other companies in the same sector
Overvalued IPOs may not deliver expected returns

See how the company plans to use the money raised — expansion, debt repayment or working capital
Productive use often signals potential for long-term growth

A strong sector outlook can support
long-term gains, even if short-term performance fluctuates
Review government policy, market size and future growth drivers of the sector

Leadership matters
Look for experienced, credible promoters with a track record of creating shareholder value

Market buzz fades quickly, but strong business fundamentals stand the test of time.

Your IPO Investment Checklist Business model Financial health IPO pricing Sector outlook Management quality

Skip the noise, trust the numbers and let logic lead your investment decisions towards IPOs in India.