The prospectus does give out some key financials of the IPO company and you can surely check out the same. Let us focus on financials first. If an IPO is from a company with a long track record then the financial track record is quite revealing. Check out the company’s capital base pre-IPO and post-IPO. From a wealth creation point of view, you should avoid companies that are likely to end up with huge capital bases as they tend to lose out on valuation traction. Also check the debt levels of the company and avoid IPOs that tend to suck liquidity and entail high levels of debt. Lastly, look at the valuations in terms of P/E ratio and the P/BV ratio. Of course, most companies tend to rethink their business models post the IPO but be wary of extremely ambitious valuations.