Analyzing IPOs: What Investors Need to Know
Stay Informed Before You Invest in the Next Big IPO in India
IPOs are once again the talk of the town in India. With multiple big names planning to go public in 2025, retail investors are showing more interest than ever. But before putting your hard-earned money into an Initial Public Offering, it’s important to know how to analyze an IPO.
This guide from Your Stories helps you understand what an IPO is, how to evaluate one, and which red flags to look out for — all in simple words.
What is an IPO?
An Initial Public Offering (IPO) is when a private company offers its shares to the public for the first time. It allows people like you and me to invest in a business by buying its shares on stock exchanges like NSE or BSE.
When a company goes public, it raises money from investors. In return, investors get part ownership in the company.
Why Are IPOs Popular in 2025?
The Indian stock market has remained strong in 2025, and several startups and established firms are looking to raise funds by listing on the stock exchange. With names like Ola Electric, FirstCry, and Mobikwik in the IPO pipeline, investor excitement is high.
But just because a company is popular doesn’t mean its IPO is a good investment. Let’s see how to analyze it properly.
How to Analyze an IPO
Here are the most important things to check before investing in any IPO:
1. Company Background
Read about the company’s business model. What do they sell? How do they make money? Are they profitable? The Draft Red Herring Prospectus (DRHP) on SEBI’s website is a great place to start.
2. Financial Health
Check the last 3 years of revenue, profit/loss, and debt levels. If the company is losing money but planning a high-priced IPO, think twice.
3. Use of IPO Money
Know where the IPO money will be used. Is it for paying loans, expanding business, or just to give an exit to old investors? If it’s only for selling existing shares, be cautious.
4. Valuation
Compare the company’s valuation with listed competitors. A company with no profits but very high pricing could be a risky bet.
5. Market Sentiment
Check how similar companies’ IPOs have performed recently. For example, if tech IPOs are struggling, it may affect new tech listings too.
Risk Factors to Keep in Mind
- IPO prices can fall after listing
- Limited track record for new businesses
- Over-hyped brands may not have strong finances
- Not all IPOs give guaranteed returns
Remember, not every IPO is like IRCTC or LIC. Some may disappoint even if they look exciting on paper.
Upcoming IPOs to Watch in 2025
| Company Name | Sector | Approx. Issue Size |
| Ola Electric | EV/Tech | ₹7,000 crore |
| FirstCry | E-commerce | ₹4,000 crore |
| Mobikwik | Fintech | ₹1,500 crore |
These IPOs are generating buzz but need careful evaluation before investing.
How to Apply for an IPO
You can apply for IPOs via:
- Bank net banking (ASBA process)
- Stock broker apps (Zerodha, Groww, Upstox)
- Online portals like NSE and BSE directly
Always apply using your PAN and correct Demat details.
Final Words
IPOs are exciting, but they also come with risk. Don’t invest blindly. Read the company’s DRHP, watch expert reviews, and only invest if you understand the business.
At Your Stories, we bring you the latest financial updates in simple terms. Whether it’s IPOs, mutual funds, or stock market trends — we help you stay ahead, informed, and confident with your money decisions.
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