Post-IPO Surge: Is It Wise to Invest After Missing Out?

I found the cover story on post-IPO performance very intriguing and informative. If I wasn’t allotted shares in the IPO but the company has strong fundamentals and the stock price has surged significantly postlisting, would it still be wise to consider investing later? - Ketaki Mane 

Editor Responds: We appreciate your kind words of encouragement. The performance of both mainboard and SME IPOs has been exceptional, with heightened investor interest in the primary market. The BSE IPO Index has surged over 60 per cent in the past year, significantly outperforming benchmark indices. This impressive performance might encourage investors to enter the market to capitalise on current opportunities, even with stock prices on the rise. However, it is essential to carefully consider valuations before investing. If a currently listed company demonstrates consistent strong financial performance and maintains a positive outlook regarding future projects and sectoral growth drivers, investing later, even if you didn’t receive an allotment, can still be a prudent decision. However, it is crucial to compare the stock’s valuation with its listed peers and industry averages to assess its future potential. Additionally, the post-IPO first earnings reports are vital for gaining insights into the company’s future direction.