We have seen the IPO mania return to the Indian equity markets after a very long time in the year 2017. If you leave aside the government divestment program, the IPO market raised nearly $2 billion in the fiscal year 2016-17 and is expected to raise nearly $5 billion in the current financial year. Many retail investors have been getting allotment under the new allotment rules and also getting a good exit at profitable levels on listing.

However, it is equally important for investors in IPOs to ensure that they make an informed decision with respect to IPO investment. Every IPO is accompanied by a prospectus. While it is a comprehensive and bulky document, there are 5 broad areas that you need to read in the prospectus before investing in the IPO. It is all about going through the fine print of the IPO offer document and culling the relevant information. Obviously, you cannot read the entire prospectus so limit yourself to the important areas.