If you are the potential investor of IPOs then before choosing a company you should have to take care of the following things.
- Keenly Read the documents of the companies which are available on the regulatory authority’s website.
- See the rating given to the companies by rating agencies.
- Gather the information about the promoters
- Take the knowledge of Profit & debt position of the company.
Getting the above information is required because sometimes companies issue their shares at higher price but it does not become able to sustain that price in the market. Sometimes shares are issued at higher price and when its price goes down in the market the companies itself buy a large amount of share for its own benefits.