Upcoming IPOs refer to IPOs that have submitted DRHP and are anticipated to open in the upcoming week or month of 2024.
IPOs have rarely seen such significant demand from investors as observed in previous years. Data indicates that the total funds raised through IPOs have already surpassed the INR 100 lakh crore mark this year. Investors could encounter comparable participation in upcoming IPOs.
What is an IPO?
The process of transforming a private business into a public entity is referred to as an IPO. When a company decides to go public, it collaborates with investment banks to introduce its shares to the public market, involving meticulous due diligence, marketing efforts, and compliance with regulations. Selling shares essentially means selling a portion of the company’s ownership to investors.
The initial offering is typically reserved for major investors such as hedge funds and banks, making it challenging for regular investors to acquire shares in a forthcoming IPO. However, once the IPO is completed, ordinary investors can purchase shares in the newly public company.
Markets are broadly categorised into two types: primary markets, where upcoming IPOs are introduced, and secondary markets.
Who is Eligible to Invest in an IPO?
The Securities and Exchange Board of India (SEBI) permits participation from four investor categories in the bidding process for shares in any upcoming IPO.
● Qualified institutional investors (QII): This group comprises commercial banks, public financial institutions, mutual fund firms, and foreign portfolio investors registered with SEBI. Underwriters aim to sell IPO shares at a profit before the upcoming IPOs.
● Anchor investors: QIIs applying with assets exceeding Rs 10 crore are recognised as anchor investors. They can acquire up to 60% of the shares reserved for qualified institutional investors.
● Retail investors: These investors can invest up to Rs. 2 lakh in each new IPO lot, with a minimum allocation of 35% in the retail quota. If oversubscribed, SEBI mandates that all retail investors receive at least one lot of shares.
● High-net-worth individuals (HNIs) or non-institutional investors (NIIs): HNIs invest more than Rs 2 lakh, while non-institutional investors are institutions seeking to invest more than Rs 2 lakh. The only distinction between a QII and an NII is that the latter is not required to register with SEBI.
List of Anticipated IPOs in 2024
For a more strategic approach to your IPO investments, explore the upcoming IPOs slated for 2024. Prominent entities such as Puranik Builders, FabIndia, TVS Supply Chain Solutions, and Oravel Stays (OYO) are gearing up for IPOs in the coming year.
- Puranik Builders IPO
Established in 1990, Puranik Builders focuses on residential and commercial real estate development, primarily in the Mumbai Metropolitan Region and the Pune Metropolitan Region. Having completed approximately 35 projects, with over 17 more in the pipeline, the company aims to raise Rs. 510 crores through its upcoming IPO.
- FabIndia
Supported by Wipro’s Azim Premji, FabIndia, a retail clothing brand with a presence both online and offline, plans to raise around Rs. 500 crores through a fresh issue of shares in 2024, as per its DRHP filing.
- Indegene
Indegene, a healthcare tech company in India, offers management, research and development, and various services to pharmaceutical firms. The company is eyeing a fundraising target of Rs. 950 crores through the public offering of its shares.
- TVS Supply Chain Solutions
Specializing in supply chain logistics solutions, TVS Supply Chain Solutions excels in areas such as demand forecasting, inventory planning, production optimization, and procurement management.
- Tata Play
Formerly known as Tata Sky, Tata Play, India’s largest satellite television operator with over 19 million subscribers, is set to launch its IPO. Walt Disney Co., a major investor, is looking to divest its entire 29.8% shareholding in the Tata Play IPO.
- Survival Technologies
A specialised chemical manufacturer in India, Survival Technologies focuses on contract research and manufacturing services (CRAMS) for select products from the heterocyclic and fluoro-organic product groups, catering to both domestic and international markets.
- Hexagon Nutrition
Hexagon Nutrition, a fully-integrated, research-oriented nutrition company, addresses diverse aspects such as food fortification, therapeutic nutrition, clinical nutrition, and the alleviation of malnutrition.
Requirements for IPO Application
To apply for an IPO in India, the prerequisites include:
- Indian citizenship.
- Possession of a PAN card.
- Having a Demat account.
While a trading account may not be mandatory for IPO application, it may be necessary for selling your holdings once the IPO shares are credited to your account.
Additionally, it is recommended to conduct thorough research on the companies you intend to invest in. Making a substantial financial commitment without due diligence is not advisable.
Conclusion
Execute rapid trades seamlessly using BlinkX. BlinkX stands as one of the best mobile trading app, renowned for its Zero Brokerage account, ensuring swift and efficient trading. The landscape of IPOs in India for 2024 holds promise, with a diverse array of companies set to enter the public domain. From real estate developers like Puranik Builders to renowned brands, the market is filled with opportunities. Investors are witnessing a robust trend. The anticipation is high for investor enthusiasm. However, prospective investors should adhere to prerequisites and conduct diligent research before making any financial commitments.