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:

1. 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.
   
2. A Demat account is required to hold shares electronically. Ensure your Demat account is active before applying.
   
3. 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.
   
4. 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.
   
5. 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:

1. 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.
   

2. 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.
   

3. 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.
   

4. 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.
   

5. 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.
   

6. 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:

1. JSW Cement Opening Date: TBA Closing Date: TBA JSW Cements Limited is the fastest growing cement manufacturing company in India in terms of increase in installed grinding capacity and sales volume from FY14 to FY24. The company is also India’s largest manufacturer of ground granulated blast furnace slag.

2. LG Electronics India Ltd Opening Date: TBA Closing Date: TBA LG Electronics is the market leader in India in major home appliances and consumer electronics (excluding mobile phones) in terms of volume for the six-month period ending June 30, 2024, as per the Redseer Report.

3. Ather Energy Limited Opening Date: TBA Closing Date: TBA Ather Energy Ltd is a pioneer in the Indian electric two-wheeler (“E2W”) market. The company is a pure-play EV company that designs all its products ground up in India. According to the CRISIL Report, in FY 2024, the company was the third-largest player by volume of E2W sales.

4. NSDL (National Skills Depository Limited) Opening Date: TBA Closing Date: TBA The National Securities Depository Limited holds a prominent position as one of India's leading depositories. As a facilitator for traders and investors, NSDL serves as an organization responsible for enabling the buying and selling of shares and securities in a streamlined, paperless manner. In the past, shares were physically represented by share certificates.

5. Reliance Jio IPO: Open date: TBA; Closing Date: TBA; Listing date: TBA: Reliance Jio Infocomm Limited is an Indian telecommunications company and a subsidiary of Jio Platforms, headquartered in Navi Mumbai. It operates a national LTE network with coverage across all 22 telecom circles. Jio offers 5G, 4G and 4G+ services all over India. Its 6G service is in the works.

6. Urban Company IPO: Opening Date: TBA; Urban Company Closing Date: TBA; Listing Date: TBA Urban Company is a leading service provider that connects you with skilled professionals, offering a wide range of home services through its platform. By registering on their platform, you can access services like salon services, fitness trainers, carpenters, electricians, etc.

7. Kent RO IPO: Open Date: TBA; Kent RO IPO Closing Date; Kent RO IPO Listing Date: TBA: Kent is well-established and is recognised as the pioneer in introducing reverse osmosis (RO) technology in the water purifier product category in India. The company’s water purifiers have received the NSF/ANSI 58 (an American national standard for point-of-use revenue osmosis systems) certification, making it the first and only water purifier manufacturer in India to obtain this certification.

8. WeWork India Management IPO: Open Date: TBA; Closing Date: TBA; Listing Date: TBA: We Work India Management is a company that offers premium flexible workspace for corporates and businesses alike. They offer coworking spaces or private offices for lease or refurbish buildings into fully managed, modern office spaces.

9. Anand Rathi Share and Stock Brokers Limited Opening Date: TBA Closing Date: TBA Anand Rathi is an established Indian brokerage house with 30 years of experience. The company provides broking services, margin trading facility, and distributed financial products under the brand ‘Anand Rathi’.

Investors interested in these IPOs should conduct thorough research and consider their investment objectives before participating. Staying informed about each offer's specific dates and details is crucial for making well-informed investment decisions.

How to apply for an IPO?

To apply for an IPO online, follow these steps:

1. Log in to your trading or broker app and go to the IPO section.
   
2. Check the list of ongoing IPOs and select the one you wish to invest in.
   
3. Enter the number of lots you wish to apply for and bid at the cut-off price.
   
4. Enter your UPI ID for payment authorisation.
   
5. 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.