Upcoming IPOs in India 2023 – 2024 (Mainline and SME Covered)

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Best Brokers for IPO Investments in India:

Best IPO Investment Opportunities To Watch Out For In 2023-2024

What Is An IPO And How Does It Work

An Initial Public Offering (IPO) is when a private company makes its stock available to the public stock market for the first time. During an IPO, the company sells pieces of their ownership (shares) so anyone can buy and become a part-owner.

When a company decides to go public, first, they hire investment bankers to figure out how much their business is worth and how many ownership pieces (shares) they want to sell. These shares are then offered to the public through the stock market, allowing people to buy them and become part-owners of the company.

Once the shares are sold, the company gets the money, and the new shareholders officially become part-owners. After the IPO, the company’s shares are traded on the stock exchange, where their prices can go up or down based on how well the company is doing.

Different Types of IPOs

• Fixed Price: The company picks a set price for each share before the IPO. The companies generally settled the prices as mostly lower than the market value. As a result, investors are always very interested in fixed-price issues and ultimately revalue the company positively.
• Book Building: Buyers tell the company how much they’d pay for shares, and the company sets the final price based on those offers.

These are just two of the main types, though there are some more important types that you need to know to reach a good starting point for exploring the exciting world of IPOs.

• Traditional IPO: In a traditional IPO, a company sells its shares to big investors, like banks and hedge funds, before ordinary people can buy them on the stock exchange.
• Direct Listing: In a direct listing, a company skips the traditional IPO process and directly lists its existing shares on the stock exchange, letting investors buy them without a set initial price.
• SPAC (Special Purpose Acquisition Company) IPO: In a SPAC IPO, a shell company is created solely to raise money through an IPO, with the purpose of acquiring another existing company, often within a specific industry.
• Crowdfunding IPO: Crowdfunding IPOs let small investors pool their money online to collectively buy shares in a company going public, allowing a broader group of people to participate in the IPO process.

IPO Terms And Their Definitions

• SEBI: SEBI (Securities and Exchange Board of India) is a regulatory body that oversees and regulates the functioning of securities markets, including stock exchanges, making sure everyone plays fair.
• Prospectus: A prospectus is a company’s introduction pamphlet, telling you everything you need to know before deciding to buy its shares.
• Initial Public Offering (IPO): An IPO is a company’s big debut on the stock market, inviting the public to buy its shares for the first time.
• Share Market: The share market is like a marketplace where people buy and sell ownership pieces (shares) of companies.
• Stock Exchange: A stock exchange is where companies list their shares for trading, like a big marketplace for buying and selling stocks.
• Listing: Listing is when a company’s shares officially become available for trading on the stock exchange.
• FPO (Follow-On Public Offering): An FPO is like a sequel to the IPO, where a company offers more shares to the public after already being listed.
• Call Option: A call option is like a ticket that allows you to buy shares at a specific price in the future.
• Put Option: A put option is also like a ticket that allows you to sell shares at a specific price in the future.
• Underwriters: When a company decides to issue new shares to the public through an IPO, it may face uncertainty about whether all the shares will be sold. Underwriters are financial institutions or investment banks that commit to buying any unsold shares from the company during the IPO.
• Price Band: A price band is a range of prices within which investors can bid for shares during an IPO.
• Oversubscription: Oversubscription happens when more people want to buy shares in an IPO than there are shares available.
• Retail Investors: Retail investors are everyday people like you and me who buy a small number of shares in a company.
• Institutional Investors: Institutional investors are big organisations, like banks and mutual funds, that buy large amounts of shares.
• Demat Account: A Demat Account, short for “Dematerialized Account,” is like a digital wallet that holds your shares instead of paper certificates. It also provides real-time updates on stock movements and portfolio valuation. Find the Best Demat account with low maintenance charges and transparent fee structures to make quick, informed decisions.
• Bidding: Bidding is when investors express how much they’re willing to pay for shares in an IPO.
• Allotment: Allotment is the process of assigning shares to investors after the bidding period ends.
• Grey Market: The grey market is an unofficial market where people trade shares before they are officially listed. Despite its unofficial nature, IPO grey market trends can provide valuable insights for investors gauging the potential success of an offering.
• Market Capitalization: Market capitalisation is the total value of a company’s shares in the stock market.
• Registrar: A registrar is like the record keeper who maintains the list of shareholders for a company.
• Book Building Process: Book building is a type of IPO process where the IPO prices are determined based on investor demand.
• Lock-In Period: The lock-in period is a time when certain shareholders cannot sell their shares after an IPO.
• Price Discovery: Price discovery is the process of figuring out the right price for shares during an IPO.
• Public Issue: A public issue is when a company offers its shares to the public, either through an IPO or FPO.
• Lead Managers: Lead managers are the main organisers and coordinators of an IPO.
• Anchor Investors: Anchor investors are big investors who invest in an IPO before it opens to the public.
• Offer for Sale: An offer for sale is when existing shareholders sell their shares to the public.
• Dilution of Shares: Dilution of shares happens when a company issues more shares, reducing the ownership percentage of existing shareholders.
• IPO Application: An IPO application is the form you fill out to apply for shares in an IPO.
• Equity Shares: Equity shares represent ownership in a company and come with voting rights.
• Listing Gain: Listing gains are the profits made by investors when a company’s shares are first listed and start trading.
• DRHP (Draft Red Herring Prospectus): The DRHP is a preliminary document that provides information about an upcoming IPO.
• Promoter Holding: Promoter holding is the percentage of shares held by the original owners or founders of a company.
• QIB (Qualified Institutional Buyer): QIBs are big institutions that meet specific criteria and can participate in IPOs.
• NII (Non-Institutional Investor): NIIs are individuals or entities that don’t meet institutional criteria but can still participate in IPOs.
• Cut-Off Price: The cut-off price is the highest price an investor is willing to pay for shares in an IPO.
• Face Value: Face value is the nominal value of a share mentioned in the company’s records.

How To Apply For an IPO?

• Choose a broker: Pick a stockbroker that allows IPO applications.
• Open a Demat Account: Ensure you have a Demat Account linked to your bank account.
• Complete KYC: Fulfil Know Your Customer (KYC) requirements with the broker.
• Check for ongoing IPOs: Stay updated on available IPOs.
• Apply through a broker: Find the best share broker and use their platforms to apply for the IPO.
• Fill out the application: Provide the necessary details and bid for the shares.
• Pay through UPI: Use UPI for payment and link your bank account.
• Monitor allotment status: Keep track of allotment status post-application.
• Receive shares: If allotted, the shares will be credited to your Demat Account.
• Sell or hold: Decide whether to sell or hold the shares based on your investment strategy.

Who Can Invest In An IPO?

• Retail Investors: Anyone with a demat account like you and me can invest in a limited number of shares.  
• Institutional Investors: Big organisations, such as banks and mutual funds, invest large amounts.
• Qualified Institutional Buyers (QIBs): Fancy investors with special rules and access, like VIPs with exclusive offers.
• Non-Institutional Investors (NIIs): Everyone else in the retail category is playing by the regular rules.
• Anchor Investors: Significant investors who invest before the IPO opens to the public.
• Foreign Institutional Investors (FIIs): Overseas organisations allowed to invest in Indian markets.
• High Net Worth Individuals (HNIs): Wealthy individuals who can invest substantial amounts.
• Employees: Sometimes, companies reserve shares for their employees in an IPO.

How To Check IPO Allotment Status

• Visit the official website of the registrar or stock exchange handling the IPO.
• Look for the “IPO Allotment” or “Allotment Status” section.
• Enter your application number and other required details.
• Submit the information to view your IPO allotment status.
• Alternatively, check your email or SMS for allotment updates sent by the registrar.
• If successful, your allotted shares will be credited to your Demat Account.

How To Enhance The Chances Of IPO Allotment

• Apply for multiple lots: Increase your chances by applying for more than one lot of shares.
• Choose the cut-off price: Opt for the cut-off price option to maximise your chances of allotment.
• Bid at the upper limit: Place bids at the higher end of the price band to improve your likelihood of getting shares.
• Check the oversubscription ratio: Research oversubscription levels to gauge demand and adjust your bid accordingly.
• Apply through multiple accounts: If allowed, apply through family members’ or friends’ accounts to increase your overall application size.
• Apply as a retail investor: Some IPOs reserve a portion for retail investors, enhancing your chances in this category.
• Avoid last-minute applications: Submit your application well before the closing time to ensure a smooth process.
• Monitor market sentiment: Assess market conditions and investor sentiment before applying for an IPO.
• Use the ASBA facility: Opt for the ASBA (Application Supported by Blocked Amount) facility for a secure and efficient application process.
• Consider smaller IPOs: Smaller IPOs may have lower demand, improving your chances of getting allotted shares.

What Is The Process Of Investing In An IPO Online?

• Open a Demat and trading account with a reliable brokerage.
• Complete the KYC (Know Your Customer) process by submitting the required documents.
• Log in to your trading account and check if the IPO is available for application.
• Choose the IPO you want to invest in and click on the ‘Apply’ button.
• Enter the bid details, such as the quantity of shares and the price you’re willing to pay.
• Make the payment through the online banking interface linked to your account.
• After the IPO closes, wait for the allotment process to know how many shares you’ve been granted.
• If allotted, the shares will be credited to your Demat Account.
• Monitor your investments and decide whether to hold or sell the allotted shares.
• Stay updated on the IPO process through the brokerage’s platform for any additional instructions or updates.

IPOs To Watch Out For In 2024

In 2024,  lots of companies are getting ready for IPOs in India. It’s going to be a record-breaking year. Let’s have a look at the upcoming Indian IPO pipeline.

India Shelter Finance: 

India Shelter Finance Corporation is a leading retail-focused affordable housing finance company with an extensive and well-established network of 214 branches spread across 15 states in India. They boast a strong presence in rural areas and compete with players like HDFC and LIC Housing Finance.

IRM Energy: 

IRM Energy Limited is a fast-growing city gas distribution (CGD) company in India, with operations in a few cities: Gujrat, Punjab, Tamil Nadu, and the Union Territory of Daman and Diu. They offer PNG Domestic, CNG Stations, PNG Commercial, and PNG Industry services 345, facing competition from giants like Adani Green and Tata Power.

Cello World Limited: 

Cello World Limited is a major player in the consumer ware market in India. They operate in consumer houseware, writing instruments, stationery, moulded furniture, and related products, as well as in the consumer glassware category. Additionally, they hold a significant position in India’s branded women’s bottom-wear market, boasting an approximate 8% market share in FY20.

Go Fashion (India) Ltd: 

Go Fashion (India) Limited is a rapidly expanding apparel retail chain targeting affordable, trendy fashion for women and kids. They focus on creating, designing, sourcing, marketing, and selling a variety of women’s bottom-wear products under the brand name ”Go Colors”. Companies like ”Fab India” and ”Max Fashion” are their top competitors.

Indian Renewable Energy Development Agency Ltd: 

Indian Renewable Energy Development Agency Limited (IREDA) is a government agency promoting renewable energy initiatives in India. IREDA was established as a Non-Banking Financial Institution in 1987. While not technically an “IPO,” their potential listing could offer exposure to the clean energy sector without direct competition from private players.

Tata Technologies Limited: 

Tata Technologies is a global engineering and product development digital services company. With expertise in engineering and design services, product lifecycle management, manufacturing, and product development IT services to automotive, aerospace, and industrial machinery industries, they boast a sizable market and top competitors like Infosys, Accenture, Hindustan Unilever Limited, Godrej Consumer Products Limited, etc.

DOMS Industries: 

Specialising in writing instruments like pencils, erasers, ball pens, gel pens and fountain pens, DOMS is a household name in India. The company also produces art materials such as watercolours, oil pastels, and sketch pens. With a dominant market share in the school stationery segment, they face competition from major players like Cello Pens, Linc Pens, and Reynolds Pens.

Inox India: 

The leading multiplex chain in India, Inox offers a premium movie experience across the country. They control a significant share of the Indian cinema market, with PVR Cinemas being their main competitor.

Motisons Jewellers: 

Known for their traditional and contemporary gold and diamond jewellery, Motisons Jewellers is leading the jewellery market across India. The company has been in business for over 50 years, with a presence in multiple cities across India. They compete with established brands like Tanishq, Malabar Gold & Diamonds and Kalyan Jewellers in the highly competitive retail jewellery space.

Suraj Estate Developers: 

Suraj Estate Developers is a real estate developer that focuses on residential and commercial projects in Pune, Mumbai and other parts of Maharashtra. With a strong track record and 36+ established projects, they compete with players like Godrej Properties, Oberoi Realty, Lodha Group, Kolte-Patil Developers, and Paranjape Schemes Construction.

Muthoot Microfin: 

A dominant player in India’s booming microfinance sector, Muthoot Microfin provides small loans to marginalised customers, specifically women entrepreneurs in rural and semi-urban areas. With over 8.5 million clients nationwide, they compete with Satin Creditcare and Ujjivan Financial Services in a market with immense potential for growth. The company’s IPO is expected to raise around Rs. 960 crores.

Happy Forgings: 

Crafting high-quality auto components, Happy Forgings supplies leading car makers like Maruti Suzuki and Tata Motors. Operating in a dynamic Indian auto industry, they face competition from Bharat Forge and Minda Industries within a promising market. The company’s IPO is expected to raise around Rs. 1,009 crores.

Credo Brands: 

Credo Brands is the parent company of Mufti Jeans, a popular Indian clothing brand. Mufti Jeans offers a range of casual wear for men, including shirts, t-shirts, jeans, and jackets. Navigating the competitive Indian fashion landscape, they compete with Aditya Birla Fashion and Raymond. The company’s IPO is expected to raise around Rs. 550 crores.

RBZ Jewellers: 

Specialising in gold and diamond jewellery with a focus on southern India, RBZ Jewellers boasts a strong regional presence. The company operates its retail showroom under the brand name “Harit Zaveri” and is an established player in Ahmedabad, Gujarat. They compete with established retail jewellers like Joyalukkas and Malabar Gold & Diamonds, whose IPO is expected to raise around Rs. 100 crores.

Benchmark Computer Solutions: 

Benchmark Computer Solutions is a global IT services company that provides software development, testing, and maintenance services to clients in the United States, Europe, and Asia. Wipro and Infosys are their top competitors.

Siyaram Recycling: 

Siyaram is a leader in paper recycling and specialises in the processing of non-ferrous metals such as copper, brass, and aluminium. With a sizable market presence, they compete with Seshaasai Paper Mills and ITC Paperboards in a sector primed for future growth.

Shree OSFM E-Mobility: 

Shree OSFM E-Mobility is an electric vehicle manufacturer that produces electric scooters, motorcycles and lithium-ion batteries for vehicles. Though they are young players, they’ll face established giants like Exide and Amara Raja Batteries in this exciting race.

Mufti (Credo Brands Marketing): 

Mufti is a popular Indian clothing brand that offers a range of casual wear for men, including shirts, t-shirts, jeans, and jackets. They navigate the competitive Indian fashion landscape against heavyweights like Myntra and Lifestyle, offering a distinct style for the young and trendy.

Identifying the best IPO investment opportunities demands thorough research into the financial health, growth prospects, and competitive positioning of companies going public.

Tips To Choose the Right IPO For Investment

The Indian IPO pipeline reflects the vibrancy of the country’s economic landscape. The companies often undergo stringent scrutiny, ensuring transparency and instilling confidence among potential investors. However, accurate IPO valuation analysis requires a comprehensive understanding of a company’s financial statements, market potential, and growth prospects.

• Check Company Background: Research the company’s background, its mission, and its financial stability.
• Consider Industry Growth: Check if the industry the company operates in is growing and has future potential.
• Evaluate Management Team: Evaluate the expertise and experience of the company’s leaders and decision-makers.
• Consider Use of Funds: Examine the intended purpose of the funds raised through the IPO.
• Assess the Company’s Competitive Position: Assess how well the company competes in its market compared to others.
• Consider Financial Trends: Look for positive trends in the company’s revenue and profit over recent periods.
• Valuation Analysis: Consider the IPO’s valuation in comparison to other companies in the same industry.
• Understand the Lock-In Period: Understand how long existing shareholders are restricted from selling their shares.
• Expert Opinions: Review insights and recommendations from financial experts and analysts.
• Oversubscription Awareness: Be cautious of oversubscription, as it may impact the allotment process.

These are the basic considerations. However, investors should closely watch IPO market trends to identify patterns and make informed decisions about when to enter or exit the market.

Risks Associated With IPO

• Market Fluctuations: Share prices can go up or down based on market conditions, affecting the value of your investment.
• Uncertain Returns: There’s no guarantee that you’ll make a profit, and the value of shares can be unpredictable.
• New Company Challenges: IPOs are often for new companies, which can face challenges in establishing themselves and may carry higher risks.
• Limited Historical Data: Limited past performance data may make it harder to assess how the company will perform in the future.
• Lock-In Periods: Some IPOs have lock-in periods where you can’t sell your shares immediately, limiting your ability to react to market changes.
• Overvaluation Risk: The initial share price may not always reflect the actual value of the company, leading to potential overvaluation.
• Market Sentiment: Public perception and market sentiment can strongly influence share prices, introducing an element of unpredictability.
• Regulatory Changes: Changes in regulations can impact the company’s operations and, subsequently, its stock performance.
• Lack of Dividends: New companies may not pay dividends initially, limiting potential income for investors.
• IPO Hype: Hype around an IPO can sometimes lead to inflated expectations, and the actual performance may not meet those expectations.

Conclusion:         

Getting into upcoming IPOs can be both exciting and a bit scary. The idea of making big profits is tempting, but understanding different industries, company values, and market stuff can be confusing, even for experienced investors. 

Keep in mind, just because a company did well before doesn’t mean it will do the same in the future, and being popular doesn’t always mean it’s the best choice. So, research is the key to profit. Hopefully, this comprehensive guide will aid you in your research. For any queries, get in touch with us. 

FAQs:

1. What is the largest IPO in Indian history?

The largest IPO in Indian history is the one Insurance Corporation of India (LIC) at ₹21,000 crore, which went public in 2022.

2. What was the largest IPO worldwide?

The largest IPO worldwide is Saudi Aramco’s at $29.4 billion, which took place in 2019.

3. Top 5 largest Indian IPOs

The top 5 largest Indian IPOs include Paytm, Coal India, Reliance Power, SBI, and DLF.

4. Most subscribed IPOs in India all time

The most subscribed IPOs in India include IRCTC, DMart, IndiGo, Adani Ports, Glenmark Pharmaceuticals, Sterlite Technologies, HDFC Bank, SBI Cards, etc.

5. Top IPO by subscription India

The top IPO by subscription in India is often determined by the number of times the offered shares are bid for during the IPO period. However, the top one is Rail Vikas Nigam Limited (143x).

6. Who decides the price band?

The price band for an IPO is decided by the company in consultation with its investment bank underwriters, based on company valuation and market interest.

7. How many days does an IPO remain open for the Public?

An IPO remains open for public subscription for a specific number of days, typically ranging from 3 to 5 days, but can vary depending on the company and regulator.

8. Does applying for an IPO guarantee the number of shares I will receive?

Applying for an IPO does not guarantee a specific number of shares; it depends on the demand and allotment process.”

9. Can I revise or cancel my IPO application?

Yes, it is possible, but before the bidding deadline. However, IPO applications cannot be revised or cancelled once submitted, so it’s crucial to review the details before applying.

Author Name: Moumita Guin

Note: “Each article is meticulously crafted by our team of finance experts, incorporating user and community feedback to evaluate and select financial products and brands rigorously. Their thorough approach ensures only the most reliable and relevant financial solutions are recommended to our readers.”

Author Bio: Greetings! I am Moumita, a dynamic and dedicated content creator with a fervent zeal for crafting captivating stories and informative content. My adventure in the realm of words began during my academic tenure in Journalism and Mass Communication, where I discovered my ardour for content creation. With a rich background in meticulous product research and expansive long-form content development, I am eager to impart my profound insights. You will find my recommendations and expertise to be of immense benefit.