Samir Arora’s Tip For Retail IPO Investors: Don’t Buy IPOs On Day One Of Listing

Samir Arora, Founder of Helios Capital, offers key advice for retail investors looking to participate in upcoming IPOs. He suggests that retail investors can participate in IPOs, acknowledging that it’s like a lottery, as the quantity of shares received is typically small. However, Arora strongly advises against buying shares on the first day of listing. He points out that many IPOs surge 30-40% on the listing day, leading to inflated prices that don’t reflect true demand. According to Arora, oversubscription is often exaggerated by investors inflating orders to increase their chances of allocation. He emphasizes that IPOs are rarely priced cheaply and warns that some recently listed companies have seen significant drops in stock value within days of listing.