More and more companies are launching IPOs in India every year. There are more opportunities for investors interested in publicly traded stocks. Investors often miss out on applying for IPOs due to lack of information. You must keep track of new IPOs during the financial year to make timely investments. Continue reading to know some of the upcoming IPOs in India.
Do You Understand How an Initial Public Offering Works in India?
Before discussing the upcoming IPOs, it is essential to understand the basics. An IPO is a multi-day event that marks the transition of a private entity into a public. Any private company wishing to go public in India must launch its IPO. The issuing company liquidates its shares for public investors, institutional and retail. The concerned company informs investors about a new IPO in advance. Investors must submit their IPO applications within the given time to get allotted. After the IPO closes, the issuing company distributes shares to investors via a process called allotment. A company in India can raise funds for different operations by launching an IPO.
Any private company wishing to become a public entity must seek permission from the Securities and Exchange Board of India. The company hires underwriters, launches the Red Herring Prospectus (RHP), and indulges in roadshows to launch an IPO. Companies can choose to offer from two types of IPOs in India, which are:
- Fixed-Price IPO: Some companies inform investors about the share price in advance. The price of an individual share in the IPO will be static and predetermined in a fixed-price IPO.
- Book-Building IPO: Some companies launch a price band instead of a static IPO share price. Investors can place their bids within the given price band. Such an IPO in India is called a book-building offering.
Upcoming IPOs in the Financial Year
Investors must submit their IPO applications within the given days. You cannot submit your application and stand a chance for allotment after the IPO closes. Here is a list of upcoming IPOs in 2023 –
- Kahan Packaging Limited IPO
- Jiwanram Sheoduttrai Industries Limited
- Unihealth Consultancy Limited
- EMS Limited
- EbixCash Limited
- Tata Technologies
- Infinion Biopharma
- Mukka Proteins Limited
- Capillary Technologies India Limited
While the details of some IPOs are already out, some are still under process. Investors must keep track of these IPOs in 2023 to make informed decisions.
Tips for Investing in Upcoming IPOs in India
Are you interested in new IPOs in India? If yes, follow these tips to make better IPO investment decisions:
Investors must be prepared for upcoming IPOs in India. You can follow the official website of NSE, BSE, or any other stock exchange to know about upcoming IPOs. Similarly, the official website of SEBI also notifies about the new IPOs. Financial newspapers, forums, social media accounts, and news channels can also help keep track of upcoming IPOs.
Use a Trading Platform
You need a trading platform provided by a reliable stockbroker to browse new IPOs. You must also have a trading and a Demat account to invest in IPOs. When an investor gets allotted, dematerialised shares are transferred into the Demat account.
Indulge in Research and Analysis
You must collect information about the company before investing in its IPO. You can refer to the Red Herring Prospectus to learn more about the company. Many investors prefer fundamental or technical research aided by digital platforms to make informed decisions. While researching the IPO, don’t forget to consider the Grey Market Premium. It is the difference between unofficial and official IPO share prices. When GMP is high, it means the IPO is in demand among investors.
In a Nutshell
You can open a trading cum Demat account and start investing in IPOs. You can compare the Demat account charges of different brokers and choose one for investing in IPOs. Don’t forget to follow proper websites to know about upcoming IPOs!