Latest IPO in India | Ultimate Guide to latest IPO information and analysis

Hot Upcoming IPOs in India this Week - Latest & New Public Issues Opening Dates with expected GMP, Price Band, Lot Size & Application Details

In India, Initial Public Offerings (IPOs) provide an opportunity for companies to raise capital from public investors. IPOs are regulated by the Securities and Exchange Board of India (SEBI) to protect investor interests. Once companies get SEBI approval, upcoming IPOs are listed on leading Indian stock exchanges like the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Ahead of the subscription period, investors track metrics like the grey market premium and issue price set by the company to gauge expected listing gains. Monitoring subscription data also provides insights into investor demand across retail, high-networth and institutional categories.

For investors, allocating to recent IPOs can supplement their India equity market exposure. By reviewing research reports and news alerts on past IPO performance, allotment details, and listing data, investors can analyze if an issuance is attractively priced for their risk appetite before subscribing. Over time, SEBI may evolve regulations and processes related to IPOs. So active investors should track announcements for updates while evaluating new opportunities to invest in IPOs as part of their overall equity investment strategy. The subscription status, allotment procedure, and final listing dates are key events to monitor for each issue.

Upcoming IPOs This week

Company Name IPO Open Date IPO Close Date Issue Price Lot Size Size of Issue(Cr) Listing date Exchange
Emcure Pharmaceuticals Limited IPO 03/07/2024 05/07/2024 1008 14 1952.03 10/07/2024 NSE BSE
Bansal Wire Industries Limited IPO 03/07/2024 05/07/2024 256 58 745 10/07/2024 NSE BSE
Vraj Iron and Steel Limited IPO 26/06/2024 28/06/2024 195-207 72 171 03/07/2024 NSE BSE
Allied Blenders and Distillers Limited IPO 25/06/2024 27/06/2024 267-281 53 1500 02/07/2024 NSE BSE
Stanley Lifestyles Limited IPO 21/06/2024 25/06/2024 351-369 40 537.02 28/06/2024 NSE BSE
DEE Development Engineers Limited IPO 19/06/2024 21/06/2024 193-203 73 418.01 26/06/2024 NSE BSE
Akme Fintrade India Ltd IPO 19/06/2024 21/06/2024 114-120 125 132 26/06/2024 NSE BSE

What is an IPO? An In-Depth Guide to Initial Public Offerings in India

Latest IPOs in India

An initial public offering (IPO) is the process by which a private company issues its first public shares to raise capital from investors. Through an IPO, a company gets listed on a stock exchange, transforming from a privately held business to a publicly traded one.

In this comprehensive guide, we will cover everything you need to know about IPOs in India.

What is an Initial Public Offering (IPO)?

An initial public offering, or IPO, is the first time a company publicly issues shares to investors on a stock exchange. This allows the company to raise capital from public markets to fund its growth plans.

During an IPO, a private company offers its shares to retail and institutional investors. This transitions the company into a publicly traded entity with wider ownership. Post IPO, the company’s shares get listed on a stock exchange where investors can buy or sell them just like any other listed security.

Some of the most well known companies in India like Tata Consultancy Services, HDFC Bank, Infosys, ICICI Bank etc. are some examples of IPOs that went on to become large enterprises over time.

Why Do Companies Go For An IPO?

There are several reasons why private companies decide to go public:

  • Raise Capital for Growth: This is the primary motive for most companies. An IPO provides access to significant capital for funding expansion plans, R&D, marketing etc.

  • Increased Brand Recognition: A publicly traded company often gets wider visibility and media coverage. This strengthens branding and reputation.

  • Enhanced Credibility: Getting listed enhances corporate image and lends more credibility when dealing with customers, vendors or creditors.

  • Employee Incentives: Employee stock option plans help attract and retain talent by granting ownership incentives. An IPO allows employees to monetize these options.

  • Existing Shareholders Can Exit: VC firms and other investors get an exit route to redeem investments by selling shares through an IPO.

The IPO Process in India

The IPO process involves multiple procedures and requires regulatory compliance at various steps. Here are the typical stages:

Stage 1: Appointing an Investment Bank

The first step is appointing a lead investment bank to advise the company on the IPO. The lead underwriter helps determine size of issue, best timing and coordinates the process through various stages.

It builds a syndicate by bringing other investment banks on board to help price and sell the shares. It also helps company fulfil SEBI’s eligibility norms for getting listed.

Stage 2: Due Diligence and Regulatory Filings

The company appoints other intermediaries like registrars, legal advisors, auditors etc. Extensive due diligence is conducted including audits, financial modelling and risk analysis.

The lead manager files a draft red herring prospectus (DRHP) with details about the company, proposed issue size, project details and intended use of funds raised.

SEBI reviews this and gives its in-principle approval for the IPO after which a red herring prospectus (RHP) is issued. The RHP contains all details except the final IPO price and share allotment details.

Stage 3: Determining the Issue Price and Allocation of Shares

This is an important step which decides the pricing or valuation at which shares will be issued. Based on prevailing market conditions a price band is fixed with upper and lower levels.

A roadshow is organized where the company management meets key institutional investors to market the IPO and gauge demand. Book building process starts where bids are collected from investors at different price levels within the band.

Based on demand at various prices, the underwriting banks determine the final IPO price and allocation of shares is finalized. SEBI approval is obtained before opening the issue.

Stage 4: Listing of Shares and Trading

On listing day, the company’s shares get listed on the stock exchange for trading. Initial buying and selling by investors determines opening price. Thereafter, the stock can traded openly by any investor through a demat account.

To ensure wider participation, SEBI norms specify percentage allocation for various investor categories in an IPO.

The Evolution of IPOs in India: A Historical Look at Public Listings

The world of initial public offerings (IPOs) has evolved tremendously in India over the last few decades. As the country's economy expands rapidly, IPOs have become an instrumental way for both established corporations and promising startups to raise funding for growth. By taking a closer look at major IPOs from the 1990s until today, intriguing patterns and insights emerge.

Understanding the changing IPO landscape equips investors to make informed choices about new public listings. It also allows entrepreneurs to set realistic expectations and sidestep avoidable mistakes of the past. This article will analyze milestone IPOs in India and highlight key success strategies and hard lessons along the way.

The Early Days of India’s IPO Boom in the 1990s

In the early 1990s, India began aggressively liberalizing its markets under the supervision of Manmohan Singh. This allowed several prominent Indian companies to tap into the immense appetite for IPOs at the time.

One pioneering success story was Infosys Technologies. When the IT services giant decided to go public on the Bombay Stock Exchange in 1993, investors eagerly scooped up the offering. Trading opened at ₹145 per share, a nearly 15% premium over the IPO price of ₹95 per share.

Other household names like HDFC Bank, ICICI Bank and Reliance followed suit with memorable IPOs before 2000 as well. These compelling growth stories highlighted India’s budding economic might on the global stage.

However, the unbridled optimism also resulted in speculative fervor around less deserving IPOs. Once the dot-com bubble burst globally, many Indian IPO valuations came back down to earth. Hard lessons were learned about reasonable P/E ratios even for promising stories.

IPO Activism Resumes in the Early 2000s, Reflecting India's Continued Rise

By 2003, the Indian markets had corrected pricing excesses seen in the previous decade. High-quality issuers once again tested investors’ appetite for IPOs – starting with state-owned behemoths.

For example, gas utility GAIL India saw robust demand for its IPO in 2004, closing the first day up 17% over the issue price. Telecom giants like Idea Cellular and Bharti Airtel also went public to positive receptions in the subsequent years.

This early 2000s period highlighted strategic timing and India’s accelerating growth pace. Savvy investors focused more on identifying quality management and durable moats.

Blockbuster Tech IPOs Steal the Show Over the Past Decade

The Indian IPO scene reached dazzling new heights from 2010 onwards thanks to red-hot tech unicorns. After a short lull following the 2008 financial crisis, risk appetite improved notably. New economy disruptors took center stage.

For instance, Mumbai-based online travel agency MakeMyTrip went public on the NASDAQ exchange in 2010. Its valuation crossed $1 billion shortly thereafter, making it an early Indian tech success.

A few years later, Alibaba and Softbank fueled an IPO frenzy through aggressive investments in promising startups. Technology behemoths like Flipkart and PayTM achieved jaw-dropping growth before debuting publicly as well.

Despite lofty valuations, most issuers held their own post-IPO owing to India’s hospitable digital ecosystem. Of course, economic shocks like demonetization caused temporary blips. But the country’s resilience and smartphone adoption ensured steady appetite.

Key Takeaways for IPO investors

Analyzing India’s vibrant IPO history reveals crucial insights for investors evaluating new public listings:

• Economic reform momentum in India directly impacts IPO investor sentiment

• Tech unicorns boast massive scale despite initial profitability concerns

• Reasonable valuations eventually matter, even for high-quality growth names

Of course, every deal still deserves careful scrutiny on its own merits. But keeping these high-level trends and lessons in mind better equips investors to separate promising IPOs from speculative noise.

Entrepreneurs also gain perspective on aligning their offerings with peak economic cycles and investor preferences. Overall, India’s IPO progression has highlighted the country’s entrepreneurial potential and risk-taking capacity on the global investment stage. Exciting new chapters likely await in the 2020s!

Investing tips for IPOs

Here are some investing tips for making informed decisions about IPOs in India:

Deciphering IPOs: Smart Strategies for Indian Investors

When exciting new companies file for initial public offerings (IPOs), it tempts investors to jump in quickly. However, restraint and research are vital even in hot areas like technology, e-commerce or healthcare. By understanding nuances around pricing, subscriptions, allotments, floating stock and more, investors make prudent choices. Here are crucial aspects to analyze before bidding on any IPO.

Recognize Hype vs Fundamentals

Separate investor frenzy from the issuer's actual proposition. Consider beyond fancy valuations calculated in isolation. Analyze financial health in depth through metrics like CAGR growth, P/E ratios, EPS over last 3 years, return on capital and cash burn rates. Develop perspective by comparing with industry benchmarks.

For example, new era technology firms often demand far higher P/E ratios owing to their scale and growth runways. However, even they require consistent performance over 2-3 years post-IPO to sustain valuations. Recognize red flags like one-time bumps in revenue or profits.

Evaluate Management Pedigrees

Founders and senior executives running the show matter greatly. Examine their background qualifications, financial services experience and track record delivering results. The cream of India's entrepreneurial talent usually surfaces through IPO jackpots. But overconfidence and subpar execution are faltering risks.

Develop Conviction Around Moats

Look beyond transient competitive advantages for evidence of durable moats i.e. clear barriers rivals cannot easily replicate. For example, Flipkart’s grip over Indian e-commerce through first-mover status, private label brands with loyal niches and a world-class supply chain integrated with logistics partners.

Assess Lock-in Periods for Promoters

Promoter shareholding percentages and lock-in durations indicate their medium-term commitment. High pledged shares are a red flag. Founders with enough skin-in-the-game usually steer companies responsibly post-IPO rather than cashing out hastily.

Decide Entry Points and Time Horizons

IPO allotments depend greatly on overall market conditions, not just issuer quality. Most stocks oscillate before stabilizing so patience pays. Invest smaller amounts through multiple IPOs rather than huge chunks in just the buzziest unicorns. Think long-term holdings rather than quick flips.

Staying balanced amid the IPO frenzy in India requires a discerning eye. But those who temper hype with wisdom stand to gain immensely as the country continues rising.

Frequently Asked Questions

What is an IPO?

An Initial Public Offering (IPO) is the process by which a private company offers its shares to the public for the first time. Through an IPO, a company raises capital by issuing new shares and getting listed on a stock exchange.

How is the price of an IPO determined?

For book built IPOs in India, a price band is set by the company in consultation with the investment bankers. The final IPO price is determined through a book building process based on demand from investors. In fixed price issues, the company fixes a price in advance.

Who can invest in an IPO?

All categories of investors in India including retail individual investors, high networth individuals (HNIs), institutional investors like mutual funds and insurance companies, foreign institutional investors (FIIs) as well as non-resident Indians (NRIs) can invest in an IPO

What is the minimum investment amount?

The minimum investment amount for retail investors in an IPO is ₹14,000-15,000 per application. For HNIs and institutional investors there is no minimum investment limit.

How can I apply for an IPO?

You can apply for an IPO online through your bank, brokerage firm or using the UPI payment mechanism. Offline applications can be submitted physically at designated branches of syndicate members, registrars and sub-syndicate members.

We have shared list of best stock brokers in India in our previous posts.

How to choose the right IPO for investment?

Analyze the company's financials, its growth prospects, the issue price, peer comparison, and expert recommendations to choose IPOs with good return potential. Avoid overpriced IPOs.

What are the risks involved in investing in IPOs?

Key risks are inability to gauge listing gains/losses in advance, significant price volatility post listing, lack of past price data, lower liquidity of newly listed shares, and uncertainty around future prospects.

Is there a guaranteed return on IPO investment?

No, there are no guaranteed returns when you invest in an IPO. The financial performance, share price movement and returns depend on the company's future growth and market conditions.

How to check the grey market premium (GMP)?

GMP can be checked on websites of grey market operators as they facilitate unofficial trading in IPO shares ahead of the official listing. Higher GMP generally indicates stronger listing gains.

Where can I find reliable IPO analysis and data?

Leading financial websites, brokerages and investment advisors provide information, analysis, recommendations and data on upcoming and live IPOs. Stock exchange websites also provide key IPO details.

What happens after the IPO listing?

After successful completion of the IPO, the shares are listed and traded on the stock exchanges providing liquidity through buying/selling of shares. Share price then fluctuates based on market forces of demand and supply.

How to track the performance of a listed IPO stock?

You can track live prices, market depth, charts, financials and announcements of a listed IPO stock on NSE/BSE websites and leading financial portals. Many websites also provide IPO performance analysis.

When can I sell my IPO shares?

Shares allotted in an IPO can only be sold after getting listed, after which there is no lock-in, allowing investors to sell immediately and book profits or cut losses.

What is the difference between Book Building and Fixed Price Issue?

In book building, only a price band is provided by the issuer and final price is set after gauging investor demand. In fixed price issue, the share price is pre-determined by the issuer based on quantitative and qualitative factors.p

What is difference between IPO Cut-Off Price and Floor Price?

In a book built issue, floor price is the lower end of the price band below which bids cannot be placed. The cut-off price is the final price determined on the last day of bidding based on demand. Cut-off is generally higher than the floor price.

What is the role of Anchor Investors in IPO?

Anchor investors infuse capital and confidence before opening of public subscription. They get shares allocated upfront at final IPO price and remain locked in for 30 days post listing inhibiting short-term volatility. Minimum anchor size is ₹10 crore.

How to check IPO application and allotment status?

After applying for an IPO, investor's application status can be checked on BSE website under 'Status of Issue Application' link. Allotment status is available under the same section on the listing date. Investor's bank/demat account is also debited in case of share allotment.

You can also check allotment status in linkintime website.

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