Initial public offerings (IPOs), are an offering of shares in the equity of a company to the public for the first time. They are typically marketed aggressively and, at times, when the markets are doing well, to excite the market and drive up the price of the newly issued shares. Although all companies coming up with an IPO need necessary clearance from Sebi, in no way does it means that Sebi recommends them. IPO investing has its share of risk, just like any other financial instrument. Proceed with caution when investing in IPOs.

olmdesk@outlookindia.com