About Upcoming IPO
Upcoming IPOs refer to stock offerings from companies that have submitted their Draft Red Herring Prospectus (DRHP) and are preparing to go public soon. These IPOs offer investors an opportunity to explore fresh avenues in the stock market by participating in companies entering a new phase. Keeping track of upcoming IPOs allows you to stay informed about potential investment opportunities in the ever-evolving market landscape.
Who can invest in upcoming IPOs?
The Securities and Exchange Board of India (SEBI) allows various categories of investors to participate in upcoming IPOs. Each category has specific guidelines and limits to ensure fair participation.
1. Qualified Institutional Buyers (QIBs)
QIBs include mutual funds, banks, public financial institutions, and foreign portfolio investors registered with SEBI. They play a critical role in IPOs, bringing large investments and market expertise. Additionally, anchor investors, a subgroup of QIBs with assets exceeding ₹10 crore, can reserve up to 60% of the QIB quota. SEBI also mandates a lock-in period of 90 days for these investors to ensure market stability.
2. Retail Investors
Retail investors are individuals who can invest up to ₹2 lakh in an IPO. SEBI mandates that at least 35% of the total IPO shares are reserved for this category. If the IPO is oversubscribed, shares are allocated through a lottery system, ensuring each retail investor has a chance to receive at least one lot.
3. High Net-Worth Individuals (HNIs)
This group includes non-institutional investors and corporates who invest more than ₹2 lakh in an IPO. There is no maximum limit for their investments, and this category generally attracts individuals or entities looking to make higher-value investments.
By dividing IPO participants into these categories, SEBI ensures fair access and balanced participation in the market. Each group has unique advantages and plays a vital role in the IPO ecosystem, making it accessible to a broad range of investors.
What is the process of investing for an upcoming IPO online?
Investing in an IPO online is simple and requires these steps:
1. Choose the IPO
To choose an IPO, review the company’s prospectus for detailed insights into its business and future plans. Kotak Securities also provides resources like blogs, dedicated IPO pages, and research webinars for further analysis. Additionally, comparing the company with similar listed firms can help evaluate its potential.
2. Ensure you have the required accounts.
To participate in an IPO, you need three accounts:
- Demat Account: To hold your shares electronically.
- Bank Account: To fund your IPO application through the ASBA facility.
- Trading Account: Allows you to buy and sell shares once listed.
3. Apply for the IPO
Log in to your bank's net banking portal or use your broker’s platform to apply for the IPO. After applying, the amount will be blocked in your bank account. If shares are allotted, the amount will be debited. Otherwise, the blocked amount is released.
This simple process lets you invest in IPOs with ease.
Prerequisites for applying for an IPO
To apply for an IPO in India, there are a few essential requirements one needs to follow:
- Any Indian citizen with a valid PAN card can apply for an IPO. While a trading account is not mandatory for applying, you will need one if you wish to sell the shares after they are credited to your Demat account.
- A Demat account is required to hold shares electronically. Ensure your Demat account is active before applying.
- The Application Supported by Blocked Amount (ASBA) feature allows you to block the amount required for the IPO application. Ensure your bank account has sufficient funds, as applications must have more balance to be accepted.
- UPI is a quick and convenient payment option for IPO applications. You can create a UPI ID through your bank or payment apps. Enter your UPI ID in the application form to authorise the payment.
- Before applying, carefully read the company's prospectus and evaluate its business potential. This helps you make an informed investment decision.
By meeting these prerequisites, you can easily apply for upcoming IPOs.
How to increase your chances of IPO allotment?
Getting an IPO allotment can be challenging due to high demand, but there are strategies to improve your chances:
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Apply using multiple Demat accounts:
Submitting applications through multiple Demat accounts in your family’s name can increase your chances of acceptance. Each account is treated as a separate application, but do ensure that each account has a unique PAN card linked to it. -
Bid at the cut-off price:
Every IPO has a price band. To increase your chances, always bid at the highest price (cut-off price) within the band. This ensures that your application is considered, regardless of the final issue price. -
Avoid waiting for the last day:
Many investors wait until the last day to analyse subscription figures before applying. However, banks and brokers often only accept applications after 4 PM on the final day, leading to potential rejection. Apply early to avoid this risk. -
Apply under the shareholder category:
If the company launching the IPO is owned by a parent company already listed, you can apply under the 'shareholder' category. This category often has reserved quotas, increasing your chances of allotment. -
Submit only one application per demat account:
Avoid making duplicate applications from the same Demat account, as they are likely to be rejected. Stick to a single bid per account. -
Stay updated and prepare early:
Research upcoming IPOs, keep your Demat account and UPI ID ready, and have sufficient funds in your bank account to ensure a smooth application process.
By applying strategically and avoiding common mistakes, you can significantly improve your chances of getting shares in an IPO. Start early, bid wisely, and use available categories for a smoother IPO application experience.
List of upcoming IPOs in 2025
As the year progresses, several companies are set to launch their Initial Public Offerings (IPOs) in the Indian market. Here are some notable upcoming IPOs scheduled in 2025:
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Urban Company IPO Opening Date: 10th Sep'25 Closing Date: 13th Sep'25 Urban Company operates a technology-driven, full-stack online services marketplace for quality driven services and solutions across various home and beauty categories. They operate in 51 cities across India, United Arab Emirates (“UAE”) and Singapore, excluding cities served by their joint venture in Kingdom of Saudi Arabia (“KSA”), of which 47 cities are in India, as at June 30, 2025.
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Lenskart IPO Opening Date: TBA Closing Date: TBA Lenskart Solutions Limited is a technology-driven eyewear company with integrated operations spanning designing, manufacturing, branding and retailing of eyewear products. They primarily sell prescription eyeglasses, sunglasses, and other products such as contact lenses and eyewear accessories.
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Tata Capital IPO Opening Date: TBA Closing Date: TBA Tata Capital is a financial services company owned by the Tata Group. It offers a wide range of financial products and services to retail, corporate, and institutional customers.
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Zepto IPO Opening Date: TBA Closing Date: TBA Zepto is an Indian online grocery delivery platform known for its rapid delivery service, promising delivery in as little as 10 minutes. Founded in 2021 by Aadit Palicha and Kaivalya Vohra, it operates through strategically placed dark stores and a network of delivery hubs.
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Pharm Easy IPO Opening Date: TBA Closing Date: TBA PharmEasy is an online medicine delivery app, where you can buy healthcare products, OTC products, medical equipment, and medicine online.
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Meesho IPO: Open date: TBA; Closing Date: TBA; Listing date: TBA: Meesho is an Indian e-commerce company focused on social commerce. It provides a platform for individuals and small businesses to sell products online, particularly through social media platforms like Facebook, Instagram, and WhatsApp.
How to apply for an IPO?
To apply for an IPO online, follow these steps:
- Log in to your trading or broker app and go to the IPO section.
- Check the list of ongoing IPOs and select the one you wish to invest in.
- Enter the number of lots you wish to apply for and bid at the cut-off price.
- Enter your UPI ID for payment authorisation.
- Approve the payment request through your UPI app. The required amount will be blocked in your account until the allotment is finalised.
You can track the status of your IPO application on the same platform. Ensure your UPI ID, Demat account, and sufficient funds are ready before applying.
FAQs
What is an upcoming IPO?
An upcoming IPO refers to the company’s plan to offer its shares to the public for the first time. It refers to the company’s announcement and its intention to go public, although the actual listing has not yet taken place. The company finalises the date and pricing and undergoes regulatory approvals before bidding for its shares takes place once the offer window opens.
How to prepare for upcoming IPOs?
To get ready for upcoming IPOs, start by researching the company’s business, its industry, and its future potential. Go through the IPO prospectus (DRHP) to understand the company’s financials, risks, and objectives. Keep an eye on market trends and assess how recently listed IPOs have performed. Ensure you have an active Demat and trading account, as these are essential for investing. Additionally, check that you have sufficient funds available for the IPO application. Finally, set clear investment goals, whether for short-term gains or long-term wealth creation.
How can one apply for upcoming IPOs online?
To apply for an IPO online, log in to your trading account or create one if you’re a new user. Go to the IPO section, choose the IPO you want to apply for and enter the lot size and bid price. For better allotment chances, bidding at the cut-off price is recommended. Provide your UPI ID and submit the application. You will need to approve the payment request on your UPI app, which will block the amount until the IPO allotment process is complete.
How can I find which IPOs are upcoming?
There are several online resources from which you can find out about upcoming IPOs. You can find information about upcoming IPOs on the websites of SEBI, BSE, and NSE. Alternatively, you can check Kotak Securities IPOs page to know about the IPOs that are likely to hit the market.
Where do I get an application form for an upcoming IPO?
You can obtain the application form for an upcoming IPO from the website of NSE or BSE. That said, you can also apply for an upcoming IPO from the Demat account you have with Kotak Securities. You can log in to your Demat account and visit the IPO section to apply from the list of upcoming IPOs.
Do I need a Demat account for investing in an IPO?
Yes, a Demat account is essential for investing in an IPO, as it holds the shares electronically. Additionally, a trading account is required to sell your holdings conveniently.
What is the difference between DRHP and RHP?
Draft Red Herring Prospectus (DRHP): A preliminary document filed by a company planning to go public, containing details about its business operations, financials, risks, and objectives of the IPO. Red Herring Prospectus (RHP): An updated version of the DRHP, including additional information such as the IPO dates, final offer price, and other essential details.
Is buying every IPO a good idea?
Investing in every IPO doesn't guarantee profits. While some IPOs may list at a premium, others might not perform as well. It's crucial to research each company's fundamentals, read the DRHP, and assess market conditions before making investment decisions.
What should I know before I invest in an IPO?
Before investing in an IPO:
- Research the company and understand its business model, financial health, and growth prospects.
- Review the DRHP/RHP for detailed insights into the company's operations and risks.
- Consider current market trends and investor sentiment.
- Align the investment with your financial objectives and risk tolerance.
What is a DRHP?
A Draft Red Herring Prospectus (DRHP) is a preliminary document submitted by a company planning to conduct an IPO. It provides detailed information about the company's business operations, financials, risks, and objectives for raising capital. Investors should review the DRHP to make informed investment decisions.
What is IPO issue size?
The IPO issue size refers to the total value of shares a company offers to the public during its initial public offering. It's calculated by multiplying the number of shares issued by the offer price per share.
How to subscribe to an IPO?
To subscribe to an IPO, use your trading account or your bank’s net banking platform. Select the IPO, fill in the lot size and bid price, and submit your application. If applying via UPI, ensure you approve the payment mandate to block the required funds. Once submitted, you’ll receive a confirmation, and the allotment status can be tracked through your trading account.
How to check an IPO start date?
IPO start dates are announced in the company's prospectus and are available on stock exchange websites and financial news platforms. Regularly monitoring these sources will keep you informed about upcoming IPO schedules.
Does an IPO always give profit?
Investing in IPOs does not guarantee profits. While some IPOs may deliver significant returns, others might underperform. It's essential to assess each IPO individually, considering factors like company fundamentals, market conditions, and investor sentiment.
What is the price band in an IPO?
The price band is the range within which investors can bid for shares during the IPO. It includes a lower and upper price limit, allowing flexibility in price discovery based on demand and investor interest.
What is the difference between the issue price and the listing price?
Issue Price: The price at which shares are offered to investors during the IPO.
Listing Price: The opening price of the shares when they commence trading on the stock exchange, determined by market demand.
How do I sell an IPO on a listing day?
To sell shares on the listing day:
- Log in to your trading account linked to your Demat account.
- Place a sell order and specify the quantity and desired price.
- Be aware of the current market price to make informed decisions.
What is the average first-day return on IPOs?
The average first-day return on IPOs varies based on market conditions, investor demand, and company specifics. While some IPOs may experience significant gains, others might see minimal movement or declines.
What is the difference between IPO & FPO?
IPO (Initial Public Offering): The first sale of a company's shares to the public, marking its transition from private to public status.
FPO (Follow-on Public Offering): An additional issuance of shares by a company that is already publicly listed to raise extra capital.
What happens after you apply for an IPO?
After applying for an IPO:
- The application amount is blocked in your bank account via ASBA (Application Supported by Blocked Amount).
- Further shares are allotted based on demand and availability.
- Now,
If shares are allotted, the blocked amount is debited. If no shares are allotted, the blocked amount is released.
Can I reverse or cancel my IPO application?
Yes, you can modify or withdraw your IPO application within the bidding period. This can be done through your broker's platform or by contacting your bank if you applied via ASBA. Ensure to check specific timelines and procedures with your service provider.
What happens after applying for an IPO?
Your application goes through a verification and allotment process. First, the amount you’ve bid for is blocked in your bank account. Once the IPO subscription window closes, the company and its registrar verify all applications. Then it begins the allotment process.
If you receive an allotment, you get a notification, and the corresponding amount gets debited from your account. The shares are then credited to your demat account before the listing date. If you don’t receive an allotment, you get a refund.
What is pre-apply in IPO?
Pre-apply in IPO allows you to submit subscription requests before the actual IPO date. When you pre-apply, your application details and payment instructions are recorded in advance. Your order is automatically submitted when the IPO opens for subscription. Note that pre-apply doesn’t increase your chances of allotment. However, it ensures your application is submitted on time without a last-minute rush.
What are the key stages of an IPO?
An IPO has several key stages. It begins with the appointment of book-running lead managers who help structure and execute the IPO process. Next comes the documentation phase, where a company reviews its financials, business model, risks and legal compliance. Based on this, it prepares a draft red herring prospectus (DRHP) and files it with SEBI.
After regulatory approval, lead managers submit the IPO application and DRHP to stock exchanges for approval. Then the IPO's price is determined and a red herring prospectus is prepared and filed with the exchange. The company then moves to the marketing and roadshow phase, where it presents its investment case to various categories of investors. The price discovery stage follows this. Once the price is finalised, the IPO opens for subscription. After a successful subscription, shares are allotted to investors, and the company’s stock is finally listed on the stock exchange.
