Business Today
As the initial public offering (IPO) market continues to attract attention, industry veterans are urging investors to exercise caution. Nilesh Shah, MD & CEO of Envision Capital and Devina Mehra, Founder and CMD of First Global, stressed that while IPOs can offer opportunities, they are often overvalued and not guaranteed to deliver immediate gains. Advertisement
Shah noted that participating in IPOs has historically been selective in terms of profitability. "Broadly over a period of time, participating in IPOs has not necessarily been the best way to generate returns. Maybe just 2-10 per cent of IPOs actually make money at listing or within the first month," he told Business Today on Tuesday.
He advised investors to wait for two to four quarters of performance from newly listed compa