RISK · 3 MIN READ
IPO risk checklist
Use this checklist after reading the offer document—not as a substitute for it.
Business
Is revenue dependent on one product, customer, supplier, geography or licence? Is demand cyclical or easy to copy?
Financials
Are profits supported by cash flow? Check debt, working-capital days, margin volatility, contingent liabilities and one-time income.
Valuation
Is the issue priced above comparable listed companies without stronger growth, margins or returns?
Promoters and governance
Review promoter background, litigation, related-party transactions, pre-IPO placements and the amount being sold through the offer for sale.
Use of money
Does the fresh issue fund productive expansion, debt reduction or recurring working-capital needs? Are the objectives specific?
Exit risk
Consider post-listing liquidity, especially for SME shares. A visible quoted price does not guarantee a large position can be sold easily.
Reviewed for clarity · 2026-11-03