IPOs (Initial Public Offerings) have been making headlines with impressive gains, like Burger King’s 130.67% surge and Mrs Bector’s 106.79% leap. However, not all IPOs guarantee such returns. To help you navigate this dynamic landscape, we’ll unveil the top 10 tips and strategies for successful IPO investments in 2023. But before we dive in, let’s understand what an IPO is.
Understanding IPOs
An Initial Public Offering (IPO) is when a private company goes public by selling its shares to raise capital. Post-IPO, these shares become tradable on the stock exchange. To delve deeper into IPO investments, check out our article on the basics of IPO investing.
Table of Contents
10 Tips & Strategies for IPO Investment
Tip 1: Conduct Thorough Research
When investing in IPOs, remember that you’re dealing with private companies with limited disclosure. Experts may not uncover all the details, so conduct your own research. Compare company performance, analyze the sector, and project future growth.
Tip 2: Review the Red Herring Prospectus
The red herring prospectus is your guide to understanding how your investment will be utilized. It covers essential details about the company, including its background, promoters, reasons for going public, risks, and fund utilization. Access it from the company’s website, stock exchange website, SEBI website, or publications.
Tip 3: Know Fund Utilization
Understand how the funds raised will be used. If it’s for expansion and research, it’s a positive sign. However, if it’s to repay liabilities, be cautious.
Tip 4: Scrutinize Promoters & Management
Conduct a background check on promoters and assess the quality of the management team. Strong management can navigate crises and create wealth.
Tip 5: Trust Reputed Brokers
Invest in IPOs underwritten by reputable brokers. While big brokers usually underwrite strong companies, research the specific IPO, as small brokers can also offer promising opportunities.
Tip 6: Bid at Cutoff Price
To enhance your chances of allotment, bid at the cutoff price, ensuring your application is considered, regardless of the final allotment price.
Tip 7: Assess Valuations
Evaluate the company’s valuations by setting benchmarks and comparing them to peers in the industry.
Tip 8: Plan Your Exit Strategy
Determine your exit and profit-taking levels in advance, especially if you’re a short-term investor. Setting stop-loss levels is crucial to manage potential losses.
Tip 9: Understand Lock-in Periods
Be aware of the lock-in period, as it impacts share prices after the IPO. Trustworthy underwriters holding shares post-lock-in can indicate confidence in the company’s prospects.
Tip 10: Be Skeptical
Exercise caution when your broker recommends an IPO, especially if it’s being pushed due to a lack of interest from high-net-worth investors and institutions.
Conclusion
IPOs offer a unique opportunity for companies to raise equity capital, but not all ventures are created equal. Assess the hidden details before investing. For unbiased research and IPO recommendations, consider a platform like Samco. They offer seamless IPO applications and valuable insights. With exciting IPOs on the horizon in 2023, open a Samco Demat and trading account to access the best opportunities.
Frequently Asked Questions about IPOs
What is an IPO?
An IPO, or Initial Public Offering, occurs when a private company sells shares to the public, making them tradable on a stock exchange.
How can I invest in IPOs?
To invest in an IPO, open a brokerage account, monitor IPO announcements, complete the application process, and await allotment
Are IPOs a guaranteed investment?
IPOs can yield substantial returns, but they carry risks. Research companies thoroughly and consider your investment goals and risk tolerance.
Q: When is the right time to invest in an IPO?
A: Consider investing when you believe in the company’s growth potential and can hold the investment for the long term.
Q: What is the lock-in period in IPOs?
A: The lock-in period is a timeframe during which insiders
Initial Public Offerings (IPOs) are significant events in a company’s journey when it transforms from a privately held entity to a publicly traded one by offering its shares to the public. This allows companies to raise capital for various purposes such as paying off debts, securing working capital, pursuing acquisitions, and more. If you’re considering investing in upcoming IPOs, here’s an extensive list of IPOs slated for October 2023 in India, complete with essential details.
Valiant Laboratories is a manufacturer of Active Pharmaceutical Ingredients (API) and Bulk Drugs. They aim to raise ₹152 crores through an IPO, which includes a fresh issue of 11,556,000 equity shares at ₹10 each. The allocation is divided as follows: 35% for retail investors, 50% for Qualified Institutional Buyers (QIBs), and 15% for High Net Worth Individuals (HNIs).
Plaza Wires
Date: October 29th to November 5th
Size: ₹71.28 Crores
Price Range: ₹51 to ₹54
Plaza Wires is an ISO 9001:2015 and 14001:2015 certified company engaged in the business of manufacturing and selling wires, as well as marketing LT aluminum cables and fast-moving electrical goods (FMEG). They aim to raise ₹71.28 crores through an IPO, comprising a fresh issue of ₹71.28 crores and an offer for sale of up to 13,200,158 equity shares at ₹10 each. The allocation for this IPO is 10% for retail investors, 75% for QIBs, and 15% for HNIs.
Balaji Speciality Chemicals
Date: Coming Soon
Size: To Be Announced
Balaji Speciality Chemicals, a manufacturer of niche chemicals in India, has plans to raise ₹425 crores through an IPO. This offering includes a fresh issue of ₹250 crores and an offer for sale of up to 2,60,00,000 equity shares at ₹2 each.
EbixCash
Date: Coming Soon
Size: ₹6000 Crores
Price Range: ₹1 per share
EbixCash is a technology-enabled provider of digital products and services in the B2C, B2B, and financial technology sectors. They are seeking to raise ₹6000 crores through an IPO, consisting solely of a fresh issue of ₹6000 crores at ₹1 per share.
Tata Technologies
Date: Coming Soon
Size: To Be Announced
Price Range: To Be Announced
Tata Technologies is gearing up for an IPO, and the details regarding its size and price range are yet to be announced.
SPC Life Sciences
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
SPC Life Sciences is scheduled for an IPO in 2023. The specifics regarding its size and price range will be disclosed later.
Tata Play
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
Tata Play is another IPO expected in 2023. Further information regarding its size and price range will be provided in due course.
FirstMeridian Business
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
FirstMeridian Business is planning an IPO in 2023. The details regarding the size and price range will be made available closer to the IPO date.
IRM Energy
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
IRM Energy is among the companies expected to go public in 2023. Stay tuned for more information regarding its IPO size and price range.
Lohia Corp
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
Lohia Corp is also on the list of IPOs anticipated in 2023. Specifics about its IPO size and price range will be revealed later.
Nova Agritech
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
Nova Agritech is set to go public in 2023. Further details concerning its IPO size and price range will be provided as the IPO date approaches.
ESDS Software
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
ESDS Software Solution is a cloud service provider planning to raise funds through an IPO. While the specific details of the IPO, such as the size and price range, are yet to be announced, they intend to offer a fresh issue of ₹322 crores and an offer for sale of up to 21,525,000 equity shares, each with a face value of ₹1.
ESDS Software Solutions is slated for an IPO in 2023. Details regarding its IPO size and price range will be disclosed closer to the IPO launch.
CMR Green Technologies
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
CMR Green Technologies is one of the largest producers of Aluminium and Zinc die-casting alloys. They plan to go public with an IPO, although the details, including the size and price range, are yet to be disclosed. The IPO is expected to include a fresh issue of ₹300 crores and an offer for sale of up to 33,414,138 equity shares, each with a face value of ₹2.
CMR Green Technologies is also among the companies expected to go public in 2023. Specifics about its IPO size and price range will be provided later.
Hexagon Nutrition
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
Hexagon Nutrition Limited, based in Mumbai, aims to raise ₹600 crores through their IPO. This includes a fresh issue of ₹100 crores and an offer for sale of up to 30,113,918 equity shares, each with a face value of ₹1.
Mumbai-based Hexagon Nutrition Limited is planning an IPO in 2023. Further information regarding its IPO size and price range will be available as the IPO date approaches.
Hemani Industries
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
Hemani Industries is on the list of companies expecting to go public in 2023. Stay tuned for more information regarding its IPO size and price range.
Aadhar Housing Finance
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
Aadhar Housing Finance is also among the anticipated IPOs in 2023. Specifics about its IPO size and price range will be disclosed at a later date.
Pristine Logistics & Infraprojects Limited
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
Pristine Logistics & Infraprojects Limited is set to go public in 2023. Further details concerning its IPO size and price range will be provided as the IPO date approaches.
Deltatech Gaming
Date: 2023
Size: To Be Announced
Price Range: To Be Announced
Deltatech Gaming is also part of the list of anticipated IPOs in 2023. Stay tuned for more information regarding its IPO size and price range.
Gold Plus Glass
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
Gold Plus Glass is an upcoming IPO with details about its size and price range yet to be announced. Stay tuned for more information as the IPO date approaches.
Vikram Solar
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
Vikram Solar is another IPO on the horizon with specifics about its size and price range to be disclosed at a later date.
Corrtech International
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
Corrtech International is among the upcoming IPOs, and details regarding its size and price range will be made available closer to the IPO launch.
Cogent E-Services
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
Cogent E-Services is also on the list of upcoming IPOs with information about its size and price range to be provided later.
Navi Technologies
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
Navi Technologies is expected to go public soon. Stay tuned for further details regarding its IPO size and price range.
GoAir
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
GoAir, also known as Go First, is one of India’s largest airlines. They are planning to raise ₹3,600 crores through their IPO, which comprises a fresh issue of ₹3,600 crores and an offer for sale of shares with a face value of ₹10 each. The exact number of shares for the offer for sale is yet to be determined.
GoAir, one of the prominent airlines in India, is gearing up for an IPO. The particulars about its size and price range will be disclosed as the IPO date approaches.
MobiKwik
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
MobiKwik is one of the leading mobile wallet companies. They aim to raise ₹1,900 crores through an initial public offering (IPO). This includes a fresh issue of ₹1,500 crores and an offer for sale of up to ₹400 crores at a face value of ₹2 per equity share.
MobiKwik, a leading mobile wallet company, is planning an IPO. Further information about its size and price range will be available closer to the IPO launch.
Skanray Technologies
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
Skanray Technologies is a key player in the Indian Medical Device Market. They intend to raise funds through an IPO, with details such as the size and price range yet to be announced. The IPO is expected to include a fresh issue of ₹400 crores and an offer for sale of up to 14,106,347 equity shares, each with a face value of ₹10.
Skanray Technologies is part of the list of upcoming IPOs, and details regarding its size and price range will be provided later.
ESAF SFB
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
ESAF Small Finance Bank, an Indian small finance bank, aims to raise ₹997.78 crores through an IPO. This offering comprises a fresh issue of ₹800 crores and an offer for sale of up to ₹197.78 crores, with a face value of ₹10 each.
ESAF Small Finance Bank is gearing up for an IPO. Stay tuned for more information about its size and price range as the IPO date approaches.
Pharmeasy
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
Pharmeasy is one of India’s largest digital healthcare platforms. They plan to raise funds through an IPO, although specific details such as the size and price range are yet to be disclosed.
Pharmeasy, one of India’s largest digital healthcare platforms, is expected to go public soon. Further details about its size and price range will be disclosed later.
Wellness Forever
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
Wellness Forever Medicare is an omnichannel retail company backed by Adar Poonawalla. They aim to raise ₹1,500-1,600 crores through their IPO. This includes a fresh issue of ₹400 crores and an offer for sale of up to 16,044,709 equity shares, each with a face value of ₹2.
Wellness Forever Medicare, an omnichannel retail healthcare company backed by Adar Poonawalla, is preparing for an IPO. Specifics regarding its size and price range will be provided in due course.
Ixigo
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
Ixigo is one of India’s leading online travel aggregators. They plan to raise ₹1,600 crores through their IPO, which includes a fresh issue of ₹750 crores and an offer for sale of up to ₹750 crores, each with a face value of ₹1.
Ixigo, one of the leading online travel aggregators in India, is also among the upcoming IPOs. Stay tuned for more information about its size and price range.
VLCC Healthcare
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
VLCC Healthcare is a prominent wellness and beauty services and products organization. They intend to raise funds through an IPO, although the exact details, such as the size and price range, are yet to be disclosed. The IPO is expected to comprise a fresh issue of ₹300 crores and an offer for sale of up to 8,922,672 equity shares, each with a face value of ₹1.
VLCC Healthcare, a leading wellness and beauty services and products organization, is gearing up for an IPO. Details regarding its size and price range will be disclosed at a later date.
GPT Healthcare
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
GPT Healthcare is a healthcare entity within the GPT Group. They aim to raise ₹500 crores through an IPO, including a fresh issue of ₹17.5 crores and an offer for sale of up to 3,804,700 equity shares, each with a face value of ₹10.
GPT Healthcare, the healthcare wing of GPT Group, is planning an IPO. Stay tuned for more information about its size and price range.
Penna Cement
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
Penna Cement is one of India’s largest cement companies. They plan to raise ₹1,550 crores through their IPO, comprising a fresh issue of ₹1,300 crores and an offer for sale of up to ₹1,300 crores in equity shares, each with a face value of ₹10.
Penna Cement, one of the largest cement companies in India, is also on the list of upcoming IPOs. Further details regarding its size and price range will be provided later.
Snapdeal IPO
Date: Soon
Size: To Be Announced
Price Range: To Be Announced
Snapdeal, a leading e-commerce portal, aims to raise ₹1,250 crores through an IPO. The IPO includes a fresh issue of shares, although the specific size and price range are yet to be determined.
Snapdeal, one of the leading e-commerce portals in India, is gearing up for an IPO. Specifics about its size and price range will be disclosed closer to the IPO launch.
FAQ
1. What Does IPO Stand For, and What Does It Entail?
An IPO, or initial public offering, is a process through which companies make their shares available to the public. They do this by offering their privately held shares to the general public. To initiate an IPO, companies must prepare a DRHP (Draft Red Herring Prospectus) and submit it to SEBI (Securities and Exchange Board of India) as part of the Initial Public Offer (IPO) process. This process involves transitioning the company’s status from Private Limited to Limited. Once SEBI approves the Initial Public Offer, the companies proceed with the IPO. After filing the RHP (Red Herring Prospectus), the company determines the price range and the date for investors to invest in the IPO using UPI or ASBA formats.
2. Which IPOs Are Currently Open or Expected in the Near Future?
The IPOs scheduled for this week include Valiant Laboratories and Plaza Wires in October 2023.
3. What Are Some of the Promising Upcoming IPOs in India for 2023?
Notable upcoming IPOs in India for 2023 include Ebixcash, Tata Communications, SPC Life Sciences, Tata Play, IRM Energy, Lohia Corp, Nova Agritech, and several others. It’s worth noting that the list of upcoming IPOs may expand further following SEBI’s approval.
4. Is It Possible to Apply for an IPO Without Having a Demat Account?
No, in accordance with SEBI regulations, individuals must possess a Demat Account to apply for an IPO.
5. Are IPOs Considered a Sound Investment?
Indeed, IPOs can be a prudent investment choice, both in the short term and long term. It is advisable to consider IPOs of companies with strong financial standing and high market demand.
6. How Can One Submit an Application for Upcoming IPOs Online?
Investors interested in upcoming IPOs can apply online using UPI-based IPO applications or through their banks via ASBA (Application Supported by Blocked Amount).
7. Where Can I Obtain an Application Form for Upcoming IPOs?
You can download blank ASBA IPO application forms from the NSE (National Stock Exchange) or BSE (Bombay Stock Exchange) websites. Additionally, these forms are available through brokerage firms.
Learn how to apply for an IPO using ASBA (Application Supported by Blocked Amount) through Axis Bank’s Net Banking. Follow our step-by-step guide to make the IPO application process hassle-free and efficient.
Are you looking to invest in an Initial Public Offering (IPO) and wondering how to do it through Axis Bank using the ASBA (Application Supported by Blocked Amount) method? You've come to the right place. In this guide, we will walk you through the entire process, ensuring a smooth and straightforward IPO application experience.
Step-by-Step Guide to Apply for IPO through Axis Bank
Congratulations! You’ve successfully applied for an IPO using the ASBA facility through Axis Bank’s Net Banking platform. Now, all that’s left to do is await the allotment and the subsequent crediting of shares to your Demat account.
Investing in IPOs has never been easier with Axis Bank’s user-friendly online platform. Make sure you have sufficient funds in your Axis Bank account to cover the IPO application amount, which will be blocked until the allotment process is complete.
By following these simple steps, you can participate in IPOs and potentially benefit from the exciting world of new stock offerings.
Frequently Asked Questions (FAQ)
What is ASBA, and how does it work for IPO applications through Axis Bank?
ASBA stands for Application Supported by Blocked Amount. It’s a process that allows investors to apply for IPOs without having to transfer funds upfront. When you apply for an IPO through Axis Bank using ASBA, the application amount is blocked in your bank account until the IPO allotment process is complete. If you receive the allotment, the amount is deducted; if not, the funds are unblocked.
Can I apply for an IPO through Axis Bank if I don’t have an existing Axis Bank account?
Yes, you can still apply for an IPO through Axis Bank even if you don’t have an Axis Bank account. The process includes registering as an IPO applicant and selecting the bank account from which you want to make the payment for the IPO.
Is investing in IPOs through Axis Bank’s Net Banking user-friendly?
Yes, Axis Bank provides a user-friendly online platform for investing in IPOs. The step-by-step guide mentioned in the article simplifies the process, making it easy for investors to navigate and apply for IPOs. However, it’s essential to ensure you have sufficient funds in your Axis Bank account to cover the IPO application amount, which will be blocked until the allotment process is complete.
Here, we’ll discuss how to apply for an IPO online with an ASBA using ICICI Bank NetBanking. Apply for IPOs such as mainstream IPOs, SME IPOs, or NCDs by following the instructions below. ICICI Bank NetBanking users can easily apply for an IPO through ASBA.
Enter Details in the Form like DP ID, BID, Name, Pan Card and more
Verify & Confirm Your Order
It’s completed. It’s simple and easy, however you must have money in your ICICI Bank account for the application to be disabled when you use ICICI NetBanking. If you don’t get the ipo allotment, the amount you applied for will be blocked and can be used after the funds are unblocked. The company’s shares will be credited to your Demat Account if you receive the allocation.
This article outlines the procedure for applying for an IPO through ASBA with the help of the State Bank of India.
Even the physical form is no longer necessary with the Net Banking Option, and an online IPO application can be completed entirely online without requiring a wet signature. Known as SCSBs (Self Certified Syndicate Banks), the Securities and Exchange Board of India (SEBI) has announced a list of banks via which online IPO applications may be submitted.
Applying for an Initial Public Offering (IPO) through ASBA via HDFC Bank’s NetBanking platform is a simple and convenient way to invest in the stock market. ASBA (Applications Supported by Blocked Amount) ensures that your application amount is blocked in your HDFC Bank account until the IPO allotment process is completed. Follow these easy steps to get started:
Once logged in, go to the “Investments” or “Investment Services” section from the main dashboard.
Step 3: Select IPO Application
Look for the option related to IPO application or ASBA and click on it.
Step 4: Choose the IPO
You’ll find a list of available IPOs. Select the one you want to apply for.
Step 5: Provide IPO Details
Fill in the required details, including your desired number of shares, bid price, and other relevant information.
Step 6: Add Bank Account
Ensure that your HDFC Bank account, from which you want to block the application amount, is selected.
Step 7: Submit Application
Review your IPO application details. Once satisfied, submit the application.
Step 8: Confirm Application
You’ll be asked to confirm the application. Double-check all details, and enter your NetBanking password or OTP for confirmation.
Step 9: Blocking of Funds
Upon successful submission, the application amount will be blocked in your HDFC Bank account. This amount will remain inaccessible until the IPO allotment process concludes.
Step 10: Monitor Allotment
Keep a close eye on the IPO allotment status, typically available on the official website of the stock exchange where the IPO is listed.
Step 11: Allotment and Refund
If you are allotted shares, the blocked amount will be used for payment.
If you are not allotted any shares, the blocked amount will be unblocked, and you will regain access to it.
It’s crucial to meet the IPO eligibility criteria, read the IPO prospectus, and follow any specific instructions provided by the issuing company and stock exchange.
Applying for IPOs through HDFC Bank NetBanking with ASBA is a hassle-free way to invest in the stock market. Happy investing!
Explore the world of Initial Public Offerings (IPOs) and gain a deep understanding of the IPO process, advantages, disadvantages, and investing strategies. Get answers to your IPO-related questions in this comprehensive blog.
IPO Full Form: Initial Public Offerings
When it comes to investing and raising capital, Initial Public Offerings (IPOs) play a pivotal role. In this comprehensive guide, we will unravel the intricacies of IPOs, providing you with a complete understanding of what they are, how they work, and whether they make for a good investment.
What is IPO?
An Initial Public Offering (IPO) refers to the process of offering shares of a private corporation to the public for the first time. It allows a company to raise equity capital from public investors.
Key Takeaways
IPOs provide companies with an opportunity to obtain capital by offering shares through the primary market.
The transition from private to public is an important time for private investors to realize gains.
Public investors can participate in the offering, contributing to the company’s shareholders’ equity.
How an IPO Works
Before an IPO, a company is considered private, often with a small number of shareholders, including founders and investors. Going public allows the company to access substantial capital and increase transparency.
History of IPOs
The concept of IPOs dates back centuries, with the Dutch East India Company conducting the first modern IPO. Over the years, IPOs have experienced trends and cycles influenced by various economic factors.
The IPO Process
The IPO process involves multiple steps, including proposals, underwriter selection, team formation, documentation, marketing, and share issuance. It requires careful planning and execution.
Advantages and Disadvantages of an IPO
Going public has both advantages and disadvantages. It provides access to capital and increased transparency but comes with costs and challenges, such as loss of control and public disclosure.
Investing in an IPO
Investors often eye IPOs for their potential to offer significant gains. However, factors like lock-up periods and fluctuations in share prices can impact IPO performance.
Purpose of an Initial Public Offering
An IPO’s primary purpose is to raise capital. It also provides liquidity to company founders and early investors while taking advantage of a higher valuation.
Can Anybody Invest in an IPO?
Not all investors may have access to IPOs due to demand exceeding supply. Participation can vary depending on brokerage firms and investment vehicles.
Is an IPO a Good Investment?
The potential for substantial gains in IPOs attracts investors, but it also carries risks. Evaluating an IPO requires assessing the company’s prospectus and considering personal financial circumstances.
How Is an IPO Priced?
IPO pricing is determined through a valuation process based on company fundamentals, growth prospects, and market conditions.
Conclusion
This comprehensive guide has demystified the world of Initial Public Offerings (IPOs). Whether you’re a seasoned investor or just starting, you now have a deep understanding of IPOs, their processes, advantages, and risks. Stay informed, assess opportunities carefully, and consider all factors when contemplating IPO investments.
