What makes an IPO successful?

The success of an SME IPO depends on various factors. A company with a good track record and growth prospect is bound to launch a successful IPO coupled with certain other factors.

The issuer company should conduct a thorough research of the market situation, its competitors and accordingly launch the IPO at the right time at the right price. A company should also analyse and check the performance of SME IPO lead managers and select the merchant banker wisely based on their track record.

Certain factors like sudden change in government policies and market sentiments are out of our control. However, it is important that a company is well prepared to manage, execute and overcome all the controllable factors that increase the chances of IPO success.