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Understanding An IPO

An IPO is nothing but a company going to the public to get money from investors, who can subscribe their offer, and the payment received is invested in the business of the promoter.

Understanding An IPO

Understanding An IPO

An IPO is nothing but a company going to the public to get money from investors, who can subscribe their offer, and the payment received is invested in the business of the promoter.

Evaluating Initial Public Offers (IPOs)

Evaluating Initial Public Offers (IPOs)

The first and foremost aspect which any investor has to do is to evaluate any IPO that is coming to the market in terms of fundamentals & technical parameters. Initial Public Offers is the best way to enter the market when the company is going public and when you get a  “Premium Listing”, after the IPO, it gives you an opportunity to exit the scrip at a profit.

IPO Analysis and Recommendations

Every IPO coming to the market is analyzed by you on different parameters and we give our views on it. Based on this, you may take a call on whether you should apply for the IPO or not. One thing you should remember, not all IPOs coming to the market are good IPOs. Some are good and some are not so good. We generally give a rating for all the IPOs hitting the market after a thorough evaluation of all the factors related to the offer like scope of the business, size of the market, opportunity to grow, competitors activities, longevity of the business, scope for penetration of its product / service and other related parameters of the business.

Corporate Analysis In Trading &Investing

Once we are through with the industry analysis, then comes the corporate analysis. Again, let us take the example of FMCG market. In an FMCG market, there are so many players. The creamy layer involves Multi National Companies(MNCs), followed by Large Indian Corporate Conglomerates, Listed Limited Companies, Closely Held Companies, MSME’s, Private Limited Companies, Partnerships & Sole Proprietor Companies. We need to consider the volume of business done by all these operators to come to a conclusion. Then comes the question of freezing on couple of listed companies on whom we can bet. Subsequently, we do an analysis to finalize the best company out of the shortlisted companies.This is a top down approach, in which we start right from the industry, then we come to the size of the market, followed by the best organization in that particular market. This is a proven method for both trading & investing. When we trade, we just enter the share at the right price & exit when the target price is reached. This target price is decided based on many technical parameters like demand, supply, price action & indicators. Sometimes, especially when these novice traders come to the share market & start trading, market dynamics become different & the trade can go against them. When they do a top down analysis like this, even when the market goes against their calculations, they can hold on to these shares for a while & them exit when the appropriate price is reached. Even if they hold on to these companies for a while, nothing happens to the trader who has become an investor, as they can afford to hold on to these shares due to their strong fundamentals.

Ready To Learn More ThroughOur Webinar

Ready To Learn More Through Our Webinar

Here we will take you through a course where you will be taught how to invest in stocks intelligently according to your needs. It’s a step by step process in which right from screening of a stock to shortlisting the same will be a part of the course.

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