Last updated on May 1st, 2024 at 03:45 pm
Many peoples are confused to subscribe an IPO on its opening day. We will tell you Is It Good To Buy IPO On First Day? Or should you subscribe IPO on opening day?
Investing in IPO’s is a art. You must know these 8 things before subscribe to an IPO.
Is It Good To Buy IPO On First Day?
No, it is not good to buy IPO on first day. IPO listings are depends on GMP and market sentiments. You can wait Atleast 2 days to to analyse the GMP and market sentiments about the IPO. Don’t block your funds on the first day.
If no, Than Here are 4 reasons, why should you not apply an IPO on first day?
- Funds Block
- Market Sentiments
- IPO Quality
- GMP
Funds Block
Subscription of IPOs are come with a condition, Your funds will blocked until the allotment day results. So if the IPO quality and GMP is bad, you should not block your money, You can use this money on another IPO or other trade.
Market Sentiments
Many times, Market sentiments are responsible for the stock up and down movement. If the market is in downgrade, IPO may give negative listings.
IPO Quality
Quality of IPO is most important. If you want to know about the IPO quality, you can check their recent 3 years financials, Debt and growth charts. Healthy IPO can deliver good returns in the long term.
GMP
If you want listing gains, you should check GMP of IPO. GMP stands for Grey market premium. GMP of any IPOs are easily available on Internet. You should not subscribe negative GMP IPO, if your target is listing gains.
So, This is the answer of Is It Good To Buy IPO On First Day? But if you are aware of any IPO, you can apply IPO on its opining day.
Also Read – Stocks Vs Mutual Funds?
Best Time To Buy IPO?
The final day is the best day to subscribe IPO. Because on the final day GMP and market trends are more clear than first day. You need a clear vision to subscribe for an IPO.