Why IPOs Are Not Always a Good Investment

IPO hype is common, but not every IPO is worth investing in. Many investors believe buying IPOs guarantees instant profits, but history shows mixed results. Some IPOs—like TCS and Infosys—created massive wealth. Others, like Paytm and Zomato, disappointed early investors. Why? Because IPO pricing is often set to maximize gains for the company and early investors, not for new buyers. A few red flags to watch for: If the company is heavily loss-making but demanding a high valuation If insiders are selling large stakes in the IPO If the stock is overhyped before listing Instead of blindly subscribing to IPOs, analyze their fundamentals, business model, and industry prospects. Sometimes, waiting post-listing gives a better entry point. Follow Bull and Bear School and Finance Lens on Instagram for more market insights.