Another day another #ipo. This year the stock market is flooded with number of IPO - Initial Public Offering. An IPO is the process where a private company first sells shares of its ownership to the public, becoming a publicly traded company listed on a stock exchange. Many Investors in India are enthusiastic about IPOs, primarily due to the potential for high listing gains. They see IPO as a way to make quick profits. The opportunity to become an early owner of a high-growth company, and the hype surrounding the offering. But over the years I manage to understand that an ***IPO is a marriage level event for a company***. 

> **Does it sounds strange?**


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IPO is just like marriage preparation. The phrase particularly prevalent in contexts like India, where weddings involve immense spending and social significance. Just the way people prepare for their marriage with lavishness and showoff. *A marriage is the most important public event for a family to "go public" and showcase its social standing, network, and brand to the community.* Likewise, a company also prepare it for years to launch an IPO before going public. 

Before launching the IPO to the market, the company ***shows their best side, best number best story***. But the real picture comes after few quarters. When we see promoters suddenly showing up everywhere or institutions promoting the company like crazy that you hint to sit back and watch. That is when the real picture of valuation growth and price starts to show up not the hype. 

Promoting an IPO is a strategic business decision that transforms a private entity into a public one. But sometimes the pictures were hyped than the reality. Recently there were many instances with new IPO launches, where the unnecessary market "hype" made public to lose a lot of savings. Many investors unaware of the real picture behind the IPO, may invest blindly and ultimately see their money sinking. One of the recent case is with #lenskart IPO. *One of the popular eyewear brand launched its IPO. There was lot of hype in the market. Considering it has bigger market share. However, the company was not making profit from its business. The Financials showing some profits this year from other sources. They were not deriving any profit from their main line of business. But this facts goes unnoticed in the IPO and investors applied blindly*. These are the cases where the company may give a short term return, but fail to give long term return to the investors. Because as the days progresses the true value of the company valuation comes into picture.


**Sometime patience is the best analysis, because IPOs nowadays feel like more movie promotions and less like a value proposition for investors.** 


**In good faith - Peace!!**



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