Below are Views On IPO has the same risk like investing in already listed company shares By Keshav Lahoti, Associate Equity Analyst, Angel Broking Ltd
IPO has the same risk like investing in already listed company shares. There is no guarantee of principal amount. Normally companies launch IPO when the stock market is at high valuation, so they get good valuation while launching the IPO. It is possible that on the listing day, IPO can list below issue price, so on day one you can suffer heavy loss. Additionally, IPO stocks are quite volatile during the initial days of the trading and they don't have any limit when trades need to be freezed on such stocks.
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