In most instances, this investment is used to expand or improve their business, purchase assets, or provide a dividend to investors.
In the days of dotcom mania, investors should throw money into an IPO and be almost guaranteed killer returns. Numerous companies like Advanced Enzyme Technologies Ltd., Quess Corp Ltd.experienced huge Listing-day gains.
For retail investors, IPOs are projected almost like mystical beings, which appear at special times and make investing worthwhile. Returns for IPOs are always expected to be superlative with the ability to surpass returns from other listed shares.
Retail investors, however, continue to view IPOs as a secure door to enter the equity arena. This is why we saw high oversubscription in the retail investor quota for IPOs
Every Investor or new entrants’ wants to build high return in Portfolio and require to increase their capital in very short period should go for IPO, as it give reasonable High returns in Single day i.e. on listing day with very low Risk involved.