(10) Strong Promoter’s Backing
It is one of the key secrets to find blockbuster IPO for listing gains. Big and reputed promoters tend to bring credibility to the IPO issue. This can also add a good amount of premium to the price of IPO’s.
You can also look for ownership by the government & public sector undertakings to ensure safety of returns. A strong promoter plays a significant role in the management of public companies. It is also responsible for managing public image of the organization.
On the other hand, small and unreliable promoters can ruin the entire IPO issue. It doesn’t ensure safety of returns for investors.
(11) Reputed Stock Analysts Recommendation
It is one of the most important features to track, identify & pick hot IPO for first day gains. Stock analysts are the most respected advisors in markets. They are particularly liked by new & unskilled traders.
It is right decision to take advice from best stock experts or analysts. It is due to the fact that they are actively involved in evaluating wide range of companies & IPOs. They are having access to round-the-clock market news & online resources.
Generally, they are known to have same credentials but they are not all the same. Some analysts will recommend buy while others will ask you to stay away on the same IPO.
You should never forget to consider their track record before following their IPO recommendation. However, you should never hesitate to ignore stock experts whose estimates are very far from realities.
[Read Also: 16 Tricky Ways To Identify & Pick Multibagger Stocks]
Apart from these, it is best to go by the facts, avoid being influenced by rumors, and have a closer look towards the balance sheet of the company.
You should also look for whether the firm has entered into a collaboration or joint venture with some technological firm. This can help you to select the best IPO for quick gains.
Although, there is no guarantee of robust listing of IPO in stock market but these valuable features can help you a lot. A good rule of thumb is that you should invest in IPOs reflecting most of the key features rather than looking for single factor in it.
If you are successful in analyzing every key feature smartly then perhaps you may get succeeded spectacularly.
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