Getting Started - How To Invest In IPOs

IPO or Initial Public Offering has become one of the most lucrative investment options that retail investors have preferred to invest in, especially over the past decade or so. Post liberalization, there have been a lot of Indian companies that have floated IPOs and investors have had the opportunity to put money in companies that have opted to go public via the primary market route.

IPOs have gained popularity owing to the fact that retail investors can become stake holders in the success of a company. From a company's perspective, IPOs help raise capital for growth or diversification as stipulated in the prospectus of the offer and the investors also get to become part owners of the company. Of late, a lot of government owned companies (commonly known as public sector companies) have also started floating their IPOs since the government sells a portion of its stake to the public. Although these are not technically new issues, they create a good amount of interest in the market for investment.

As a customer of HSBC InvestDirect, you can invest in IPOs online or avail of the services of our executives to help place your bids.To know more about why you should consider investing in IPOs through us, please visit our section on the services that we offer.