Tips to choose right IPO for investment.

Checklist for banking on the right IPO. Published by Ruma Dubey from Premium Investments.

1. The issue size has to be big, the bigger the issue, the higher is the capability of the promoters.

2. Money begets more money, so if they have raised more money, be sure, they will be able to earn more.

3. A higher promoters stake is a must, instills a sense of responsibility.

4. A background check on the promoters capabilities

5. Size of projects in the pipeline, will indicate the scalability of the company

6. Last but not the least, in big companies, look for long term wealth creation and not speculative gains.

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