10. DRHP also furnishes other important information like the quality of management. One can analysis ‘the quality of management’ by learning about their work experience, qualifications and projects handled.

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11. Remember, a strong promoter backing is indicator of IPO being a safe zone of investment. Large companies like Reliance and Tata bring about credibility and also add a premium to the price of IPOs. If the company is owned by the government and public sector undertakings, one can expect safety of returns.

12. You can also look at the grading of the company. When the grades are high, it indicates that the company is good. But one must not completely rely on them, as it could also be false as seen in the case of the high graded company ‘Galaxy Surfactants’ with a CRISIL rating of 4/5 had withdrawn its IPO. Hence this shows that even good companies withdraw their IPOs due to poor public sentiments and difficulty in raising funds in the market.