Introduction

Every year, investors wait for the best IPOs that can give them good listing gains and strong long-term returns. But how do you find the best IPOs? Should you rely only on GMP? Or look at company fundamentals? This guide explains how to pick the best IPOs, what factors to compare, and what data to track.

Why IPOs Are Popular

IPOs allow you to invest in companies that are just beginning their stock market journey. Many big brands — like Zomato, LIC, Paytm — raised huge funds through IPOs. Some performed well, some disappointed investors. So, research is key!

What Makes an IPO the Best

The best IPOs share some common features:
 ✅ Strong company fundamentals.
 ✅ Growing industry.
 ✅ Profitable or showing strong growth potential.
 ✅ Reasonable valuation — not overpriced.
 ✅ High investor trust and good brand name.

How to Shortlist the Best IPOs

Here’s what to check:

• Company History: Age, reputation, promoters.
• Financials: Revenue growth, profit margins.
• Use of Funds: How will IPO money be used?
• Industry Trends: Is the industry growing?
• Risk Factors: Debt, competition, regulations.

Table: Example Top IPOs

Other Indicators

 ✅ Subscription Data: High subscription shows demand.
 ✅ Anchor Investors: Well-known funds investing is a good sign.
 ✅ Market Mood: Bullish or bearish markets can affect listing gains.

Diversify, Don’t Bet All

Even the best IPO can disappoint if market sentiment changes suddenly. Always diversify your portfolio — invest in multiple IPOs or mix IPOs with other stocks and mutual funds.

Tips to Get Best IPOs

 ✅ Keep your bank balance ready — don’t miss deadlines.
 ✅ Follow upcoming IPO calendars.
 ✅ Use cut-off price for better allotment chance.
 ✅ Track GMP but don’t rely on it fully.

Checklist Before You Invest

 ✅ Have a Demat & Trading Account.
 ✅ Know how much money you can risk.
 ✅ Read the company’s DRHP.
 ✅ Talk to your advisor if needed.