Explore the list of 2023's Upcoming IPOs, featuring their opening and closing dates, as well as a glimpse of anticipated IPOs set to launch in the near future.
Investing in Initial Public Offerings (IPOs) is a gateway to exciting financial prospects. Retail investors always eagerly await the opportunity to participate in the new IPO. An IPO marks the first instance when a private company offers its shares to the public, inviting individuals to become stakeholders in the company. IPOs present a unique opportunity to invest in Emerging companies with tremendous growth potential. Many investors conduct thorough research to prepare for the new IPO launch.
By purchasing shares at the IPO stage, investors can tap into early-stage investments, often resulting in significant returns as the company expands and gains market traction. Participating in an IPO allows you to become a shareholder in innovative companies, supporting their vision while potentially reaping substantial financial rewards. An upcoming IPO can lead to a surge in demand for the company's products or services, Strengthening its position in the market.
Upcoming IPOs are the potential future leaders in the business world, providing investors with an opportunity to participate in these companies' growth stories from the very beginning of their journey in the market. Investing in Initial Public Offerings (IPOs) is a foray into the heart of market dynamics.
Investing in an Initial Public Offering (IPO) is an enticing prospect for many, offering the chance to be part of a company's growth from its very beginning. While IPOs present exciting opportunities, it's important to understand who can participate.
1. Individual Investors
Individual investors, both seasoned and novices, can participate in IPOs. It provides an opportunity for them to buy shares at the IPO price, potentially reaping profits as the company grows
2. Institutional Investors
Institutional investors such as mutual funds, pension funds, and insurance companies frequently invest in IPOs. Their substantial investments can significantly impact the stock's initial performance.
3. High Net Worth Individuals (HNIs)
High Net Worth Individuals, due to their substantial financial resources, often invest significantly in IPOs. They can acquire large blocks of shares, contributing to the success of the offering.
Employees of the company going public are often given the opportunity to buy shares at the IPO price. This provides them with a chance to become shareholders in the company they work for.
5. Retail Investors
Retail investors, the everyday individuals trading in the stock market, can participate in IPOs. Many IPOs reserve a portion of their shares specifically for retail investors, ensuring inclusivity.
You can conveniently apply for an latest IPOs through a broker by following these steps:
Step 1: Go to the broker's website or app and sign in to your account. If you're not registered, complete the signup process.
Step 2: Navigate to the IPO section and select the desired company.
Step 3: Specify the number of stocks or lot size you want to bid for and set the bid price (for a higher chance of allotment, bid at the maximum or cut-off price).
Step 4: Provide your UPI ID and click submit.
Step 5: Approve the transaction in your UPI app.
Step 6: Wait for a mandate notification in your UPI app to confirm your application.
To participate in an IPO, you'll require the following essentials:
Demat Account: Owning a Demat account is crucial for IPO investments. It serves as the storage space for your allotted shares.
Trading Account: Before applying for an IPO online, it's obligatory to have a trading account. You can establish one with any SEBI-certified depository participant.
Bank Account: Having a bank account is necessary to make payments for the applied shares. The Application Supported by Blocked Amounts (ASBA) method is utilized, where a specific sum is blocked according to your bid. Once you receive the allotment, the money is debited from your account. If you're allotted fewer shares than you bid for, the remaining amount is unblocked.
UPI ID: You can link your UPI ID to your bank account. You have the option to either create a new one or use an existing ID.
Highly sought-after IPOs receive significantly more applications than the available shares, indicating a substantial demand-supply gap. For instance, the Zomato IPO had 38 applications for each share. To enhance your chances of securing IPO allotment, follow these strategies:
1. Avoid Large Applications SEBI treats all retail applications equally, so massive investments might not yield benefits during oversubscription. Large applications work best for sizable IPOs expected to remain undersubscribed in the retail segment.
2. Utilize Multiple Demat Accounts Apply through multiple demat accounts (although limited to one PAN number) and invite family and friends to apply on your behalf, increasing your chances of getting an allotment.
3. Bid at Cut-Off Price Opt for the cut-off price, indicating willingness to buy within the specified price range, enhancing your application's attractiveness.
4. Avoid Last-Minute Rush Do not wait until the last day, as technical glitches and application submission cut off times might hinder your chances. Monitor HNI and QIB subscriptions but apply within the first two days to minimize risks.
5. Invest in Parent Company Shares Holding at least one share of the parent company in your demat account makes you eligible for the shareholder category, increasing your chances of IPO allotment.
6. Approve Mandate Request After applying, approve the mandate request through your banking app or website to lock in funds and be considered for IPO allotment.
7. Apply Early Submit your application within the initial two days of the IPO availability to avoid technical issues that often arise on the last day due to high demand.
8. Verify Application Details Double-check all details on the IPO form, including your name, demat account number, and chosen category, to prevent rejection due to errors or incorrect information.
This minimum amount can range from INR 10,000 to 15,000. Based on the lot size. The maximum investment limit for retail individual investors is 2 lacs.
Before investing in an IPO, research the company's financial health, business model, and industry trends. Additionally, understand the IPO price, allotment process, and associated risks to make an informed investment decision.
IPO issue size refers to the total value of shares a company plans to sell to the public during its initial public offering.
To subscribe to an IPO, open a demat account with a registered broker and place your bid online during the IPO subscription period.
To check an IPO's start date, visit the official website of the stock exchange or the company issuing the IPO, or follow financial news sources for updates.