Beware of recent IPOs as 80 percent of your money went to promotersRecently, many companies have gone for Initial Public Offering (IPO), because of boom in the Indian stock markets. Till now in 2017, around Rs 57,000 crore has been raised through IPOs. Out of this amount, around Rs 45,000 crore, which accounts to 80 percent of the total money raised, have gone to the pockets of either promoters or Private Equity. That means only 20 percent was used for growth of the companies, which is not a good sign. This means promoters are cashing the market. Retail investors may be tempted to buy IPOs as some of the companies are listed at 50 % premium on the listing day. So, please go through the Red Herring prospectus thoroughly before investing in IPOs and invest in those IPOs, which have a potential for growth.