Avoid These Mistakes When Investing in IPOs: Lessons from 2024's Worst Performing IPOs

Join CA Rachana Ranade, author of 'Har Ghar Investor', as she dives into common mistakes to avoid when applying for IPOs in 2025 and shares valuable insights from her expertise in finance and investing.

  • Here are 20-24 clean bullet points summarizing the video:
  • * CA Rachana Ranade welcomes viewers to her first video of 2025
  • * Discusses mistakes to avoid while applying for IPOs in 2025
  • Top Three Worst Performing IPOs in 2024
  • * Popular Vehicles and Services Limited (PVS)
  • * Capital Small Finance Bank
  • * Western Carriers India Limited
  • Mistake #1: Not Tracking Financial Performance
  • * PVS showed poor financial performance, including a revenue drop of 1%
  • * EBITDA margin decreased from 5.1% to 3.9%
  • Guideline for Avoiding Mistakes
  • * Be clear about why you're applying for an IPO (listing gains or longer-term)
  • * If only for listing gains, quit on day one
  • * If for a longer term, track quarterly results and adjust accordingly
  • Mistake #2: Not Tracking Technical Analysis
  • * Capital Small Finance Bank saw a gap down opening with big volumes
  • * Stock tested the lowest point of day one multiple times before breaking support
  • * Volume analysis indicated weakness in the stock
  • Guideline for Avoiding Mistakes
  • * Keep an eye on technical analysis, including the low of day one and volume patterns
  • * Use stop-losses when trading
  • Mistake #3: Not Analyzing Fundamentals
  • * Western Carriers India Limited showed muted sales and rising receivables
  • * News about promoters before the IPO was negative
  • * Sectoral angle (logistics) also indicated poor performance
  • Guideline for Avoiding Mistakes
  • * Analyze fundamentals, including quarterly results and sector trends
  • * Be aware of news surrounding the promoters and their potential impact on the company
  • Checklist Before Applying for an IPO
  • 1. Be clear about your investment perspective (listing gains or longer-term)
  • 2. Track quarterly results and adjust accordingly
  • 3. Keep an eye on technical analysis, including volume patterns
  • 4. Analyze fundamentals, including sector trends and promoter news

Source: CA Rachana Phadke Ranade via YouTube

❓ What do you think? What are the essential factors investors should consider before applying for an IPO, beyond just listing gains or short-term speculation? Feel free to share your thoughts in the comments!