PICK THE RIGHT IPO

1. Proven statistically: 
In 2011, 30 Indian companies came out with IPO, out of which 14 have fallen by more than 50%, 9 have fallen by more than 80% and 1 has dipped by more than 90%

2. Thoroughly research the company when applying for IPO:
Before making an investment decision, understand the business plan of the company thoroughly. Check the company's financial fundamentals and understand the opportunities and threats of the company. Check out company's prospectus, research reports, etc.

3. Check who is backing the IPO:
If reputed institutions are backing the IPO, the chances of it being fake is less.