Upcoming IPO 2024-2025, New IPO List
Here is the list of Upcoming IPOs in 2024-2025. The list includes the SME and Mainboard Upcoming IPO 2024-2025. Click on the Forthcoming IPO name for detailed information.
The Upcoming IPO this week and coming weeks are Standard Glass Lining, Quadrant Future Tek, Capital Infra Trust Invit, Laxmi Dental, Indobell Insulations, Delta Autocorp, Avax Apparels, B.R. Goyal, Sat Kartar Shopping, Barflex Polyfilms, Kabra Jewels, Rikhav Securities, Landmark Immigration and EMA Partners.
What is an IPO?
An Initial Public Offering (IPO) is the process by which a private company becomes publicly traded for the first time. When a company wants to enhance its financial position or raise capital, it must offer its equity shares to the public. This process allows individuals to purchase shares, thereby becoming shareholders and gaining a stake in the company.
There are two types of IPOs:
1. Mainboard IPO: This refers to a company listed on the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE).
2. SME IPO (Small and Medium Enterprises IPO): This refers to a company that is listed only on the BSE or NSE specifically for small and medium enterprises.
Basics of Initial Public Offering (IPO)
Initial Public Offering is an important part of a company being publicly registered on a stock exchange. There is a basic IPO below the line.
Initially, The company needs to file DRHP(Draft Red Herring Prospectus) to SEBI, adding all financial pros and cons for clarification
After that, the Company receives RHP((Red Herring Prospectus) from SEBI as approval for applying for an IPO.
The share’s amount will be decided to be declared in the market by registrars.
Subscription of IPO will be around 3 to 5 days wherein retail, QIB, and NII can invest money.
Thereafter, allotment is a day by which investors can check for IPO’s allotment and refund day.
The last step is listing day, providing the IPO’s opening price.
Purpose and Importance of IPOs
IPO(Initial Public Offering) plays a crucial role for a company by offering a chance to become a public into a private. There could be various purposes behind an IPO process.
This is the main reason for the IPO process, where a company can be represented as a “public firm” indicating its reputation in the market.
Transferring public into private company
This is the main reason for the IPO process, where a company can be represented as a “public firm” indicating its reputation in the market. changing the firm, from public to private is a different level of satisfaction for customers and owners of the firm as well because it assists in making trust in the firm along with reputation.
Capital Growth
IPO(Initial Process Offering) always comes with different purposes, capital growth is one of the main purposes, wherein capital growth is the major aim for any company as IPO funds can enhance capital growth. With the help of this capital, any firm can complete pending works like repayment, development, fulfilling debt, and many more.
Brand Awareness
The IPO process always captures media attention, if the IPO is big means mainboard that it is likely to represent the company’s goal, prospectus vision, and mission that captured the company’s brand.
Engagement with the new audience
After the IPO company becomes public with new employees, stakeholders, new projects, or new participants that meet new opportunities leading to brand awareness.
Increase the credibility and visibility of a company
IPO process with a higher amount enhances the reliability of the public and encourages them to invest in this company by holding a share of it. Moreover, a higher IPO shows that the company has a higher growth potential and sufficient plans for its future growth. Undoubtedly, retail categories may be invested for a short time but substantial means institutional investors like banks, mutual funds, and other foreign shareholders could see strong financial potential by IPO. That attracts the company’s financial position and reputation in the market.
How to Subscribe to an IPO?
Investors can apply for an IPO (Initial Public Offering) using one of three methods: UPI (Unified Payments Interface), ASBA (Application Supported by Blocked Amount), or through a broker. Here’s a clearer overview of each process:
1. Applying for an IPO via UPI:
- Open your Demat account app (e.g., Angel One, Groww, Upstox, or Paytm Money).
- Select the IPO you want to apply for and enter your UPI ID.
- You will receive a mandate approval request in your bank app or on Google Pay.
- Approve the mandate to complete your application.
2. Applying for an IPO via ASBA:
- Log in to your net banking account.
- Navigate to the IPO application section and select the IPO you want to apply for.
- Provide necessary details such as your Demat account number, PAN (Permanent Account Number), and bidding information.
- Review and submit your application.
3. Applying for an IPO through a Broker:
- Contact your stockbroker for assistance with the IPO application process.
- Fill out the required form with your broker and submit it.
This should help clarify the IPO application process for investors!
Frequently Asked Questions – FAQs:
1. What is an IPO?
An Initial Public Offering (IPO) is the process where a private company offers its shares to the public for the first time, becoming a publicly traded entity.
2. Why do companies launch IPOs?
Companies launch IPOs to raise capital for purposes like business expansion, debt repayment, and research and development. It’s also a way to gain public visibility and liquidity.
3. How can I apply for an IPO?
You can apply for an IPO through:
UPI-enabled apps like Zerodha, Upstox, or Paytm Money.
ASBA process via your bank account.
Stockbrokers, who can help you submit the IPO application.
4. What is ASBA in IPO applications?
ASBA stands for Application Supported by Blocked Amount. It’s a process where your application amount remains blocked in your bank account until the IPO allotment is finalized.
5. What are the eligibility criteria to apply for an IPO?
To apply for an IPO, you need:
A valid Demat account
A Permanent Account Number (PAN)
A UPI or bank account for payment
6. How is the IPO price decided?
The IPO price is determined by the company and underwriters based on factors like market demand, company valuation, and industry conditions.
7. What is the difference between a fixed price IPO and a book building IPO?
Fixed Price IPO: Shares are offered at a predetermined price.
Book Building IPO: Investors bid within a price range, and the final price is decided based on demand.
8. Can I sell IPO shares immediately after allotment?
Yes, once the shares are credited to your Demat account, you can sell them on the stock exchange after the IPO is listed.
9. What happens if I don’t get IPO allotment?
If you don’t receive an IPO allotment, the blocked amount in your account is released or refunded without any deductions.
10. Are IPO investments risky?
Yes, investing in IPOs can be risky due to market volatility, pricing issues, or post-listing underperformance. Always analyze the company’s financials, industry trends, and risks before investing.