Be it India or America, the environment of the stock market of almost every country is changing. New variants of Corona and the sound of lockdown have increased the concerns of investors. Crude oil prices are also falling continuously. In these circumstances, if you are thinking of earning through an Initial Public Offering ie IPO, then be a little alert.
Why it is important to be alert: Usually investors earning through IPO want to make profits on the day of listing in the stock market. Such investors do not want to hand over their money to the market for a long time or are not able to do so. According to experts, due to the deteriorating environment of the stock market, the listing of IPOs of companies may be affected. Let us tell you that the IPO of Paytm has caused a big loss to the investors.
Coming IPO of these companies: IPOs of many companies are being launched in the month of December. The IPO of Tega Industries Limited, a company providing services in the mineral and mining industry, is going to be launched on December 1. Apart from this, the IPO of VLCC Health Care and Star Health Insurance is also going to come into the market. IPOs of other companies including Adani Wilmar are also likely to come in December.
Things to keep in mind: If you want to bet on IPO, then definitely consider some things. For example, what is the valuation or future of the company? How much space has the company kept for retail investors? At the same time, the performance of the company including the fund manager, promoters also needs to be looked into. It is also important to know where the company is going to use the funds. Will the company invest the funds raised from the IPO in business expansion or will it spend elsewhere? According to experts, check the gray market premium ie GMP account once. Experts recommend that you wait till the last day to apply for the IPO. Betting on IPO will be right only after seeing and understanding all these factors.
What is the condition of crude oil: The price of crude oil has fallen by about 11 percent since the new variants of Corona came to the fore. This is the biggest single-day drop since April 2020.
What is the condition of the stock market: The effect of the new variant has been on the stock market from India to America. In the Indian stock market, the Sensex fell by 2.87 percent on Friday, while the Nifty fell by up to 2.91 percent. Similarly, the US stock market Dow Jones closed down 2.53 percent. Talking about the S&P 500 index, it fell 2.27 percent.
How will the situation go ahead: If the new variant of Corona expands, then the world may once again be in the grip of lockdown. Due to this, the recovering economy will be shocked. At the same time, the Indian stock market may once again see an atmosphere like the first wave of Corona. This was the time when companies postponed their IPOs. At the same time, the effect of the first wave of Corona was also visible on the IPO of SBI Cards.