IPO checklist and risks: 12 questions to ask before you apply
- What does the company do and how does it make money?
- Is it profitable and is cash flow positive over several years?
- How much debt does it carry and what is the interest cover?
- What is the valuation compared with listed peers?
- Fresh issue or offer for sale? Who is selling and why?
- What are the objects of the issue?
- Who are the promoters and what is their track record?
- Are there large related-party dealings or pending litigation?
- Who are the anchor investors?
- How is subscription building in each category?
- Can you afford to lose the money you apply with?
- What is your plan – sell on listing or hold for the long term?
Main risks
- Listing below the issue price.
- Overpaying for a popular company.
- Low liquidity, especially in SME issues.
- Relying on grey-market tips or unofficial “calls”.
This checklist is educational. LiveIPOData does not give investment advice and is not a SEBI-registered adviser.
Frequently asked questions
Should I apply for every IPO?
There is no rule. Apply only where you understand the business and the price and are comfortable with the risk.
Last updated 2026-10-20. Information only, not investment advice.