You are surely here because you are interested in the IPO and thus want to know everything about it.
Moreover, you might also want to know about top 10 upcoming IPO in India.
Do not worry, you will get to know everything here in a simple way.
What is an IPO?
An IPO stands for Initial Public Offering, which is essentially a financial event that deals with the offering of shares to the public for the first time by the privately-owned companies. The main importance of an IPO lies in raising capital through public investors meant for expansion, debt payoff, and funding money for research and development works.
The IPO is therefore a transfer from private to public ownership and is most of the time accompanied by a strict regulatory process monitored by the financial authorities.
Initial Process of an IPO
This is the stage at which the company selects a number of investment banks it intends to underwrite the offering. Usually, the recommendation of the IPO price is made by these banks alongside the amount of shares to be issued and advising them on marketing shares to prospective buyers.
After a price is set and approvals obtained from the regulators, the shares are offered on a stock exchange where it may be purchased by investors. Upon completion of an IPO, the shares are listed on the stock market, and that company can be traded upon the stock market.
How to Invest in an IPO
Many people find attractive reasons for investing in an IPO. This investment allows investors to buy shares in the company at its early growth stages and hopefully get substantial returns in case the company does well.
But there’s a catch here.
And what’s that?
Glad, you asked!
Investing in IPOs comes with risks. Keep in mind that not all companies perform well after the IPO and the prices of their shares tend to change with changes in market conditions.
Advantages of Investing in IPOs
- Growth Potential: Investing at an early stage in a promising business may also mean substantial profits once the business grows.
- Diversification: IPO allows an investor to diversify his portfolio with new companies.
- Market Sentiment: An efficient IPO might actually mean the positive sentiment of the market towards that specific sector or industry.
Risks Involved in an IPO
- Volatility: Stocks that are newly listed may also experience extreme fluctuations of prices.
- Lack of any Data: Before the IPO process, an investor may not have as much insight about the company’s past performances.
- Lock-Up Periods: There is a lock-up period for the early investors. This simply means that those investors cannot sell their shares for a certain period after the IPO.
Top 10 Upcoming IPO in India
Top 10 Upcoming IPO in India in ‘24/25
The companies in India are willing to go Public and that is quite visible in the stock market. Those companies want to provide various investment opportunities for retail and institutional investors.
So, here are the top 10 upcoming IPOs in India in 2024/25:
1. Ola Electric Mobility
Ola Electric is expected to list as it expands its electric vehicles offerings further. The company is trying to cash in on the rising EV market in India, which has already helped create a strong brand value through its parent company, Ola Cabs.
- Expected Share Price: ₹700–₹800
- Market Potential: High demand for an electric vehicle supported by government initiatives.
2. Snapdeal
Snapdeal is soon to list and strengthen its market position in the Indian e-commerce- competitive space. This company brands for value shopping and has strong customer loyalty.
- Expected Share Price: ₹300
- Market Potential: Growing e-commerce sector with increasing internet penetration.
3. Fabindia Limited
Fabindia aims to raise capital with an IPO, where it will strengthen its retail presence by branding the core theme of Indian handicrafts and sustainable products.
- Expected Share Price: ₹ 500-₹600
- Market Potential: Surging consumer demand for sustainable and responsible brands.
4. Premier Energies
Premier Energies intends to launch the IPO to enter the stock market to meet the requirement of increasing solar energy capacity.
- Expected Share Price: ₹300–₹350
- Market Potential: Increasing demand for renewable energy solutions.
5. ECO Mobility
ECO Mobility is going to issue an IPO that will prove a step in promoting electric mobility solutions, as these will be well in line with the government’s policies to increase EV adoption.
- Expected Share Price: ₹250–₹300
- Market Potential: The company boasts solid government support for electric vehicle projects.
6. Bajaj Housing Finance
It is a subsidiary of Bajaj Finserv and this group is planning to go for an IPO to increase the borrowing for the housing finance segment.
- Expected Share Price: ₹500
- Market Potential: It has huge potential for expansion in affordable housing finance
7. Baazar Style Retail
Baazar Style Retail is going for the IPO to expand its retail network in India.
- Expected Share Price: ₹200–₹250
- Market Potential: Flourishing online shopping trends and vast product varieties.
8. Indegene Ltd
Indegene is a health care service and will raise funds in an upcoming IPO based on digital healthcare services.
- Expected Share Price: ₹400
- Market Potential: Rising demand in health care technology solutions
9. Aadhar Housing Finance
It is looking to expand its operations through an affordable housing finance-focused IPO across low-income housing segments.
- Expected Share Price: ₹300–₹350
- Market Potential: Government schemes boosting affordable housing projects.
10. TBO Tek
TBO Tek is planning to list its IPO to fuel the bounce-back of the travel industry following the post-pandemic recovery by availing travel tech solutions.
- Expected Share Price: ₹250
- Market Potential: The increased demand for tech-enabled travel solutions in the globalized world after everyone resumed traveling.
Verdict: Personal View
In participating in an IPO, one has to seriously weigh the several factors that surround the IPO, such as business models of the company, market conditions, and the financial health of the company. Balancing the high returns should encompass the usual risks involved in investing in a company that may not have yet proven itself in the public market.
While accessing IPO shares, one might face certain difficulties because many brokerage houses would like to allocate these shares at the offering price to high net-worth individuals or institutional investors, and thus it becomes difficult to get to the same for retail investors.
Finally, it is YOU as the investor who must research before investing in an IPO based on market conditions, company fundamentals, and the nature of risk involved. Again, be kept aware of the developments related to these companies so you can decide on a well-informed basis to suit your personal financial goals.
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