Things You Should Not Miss On Upcoming IPOs in India for 2022

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An IPO is selling shares of a private firm to the general public in new stock. An IPO allows a company to raise funds from the general public. Because the transition from a private to a public corporation frequently includes a share premium for current private investors. It may be a critical period for private investors to fully reap the benefits of their investment. Meanwhile, public investors may participate in the offering. Purchase stock at the lowest possible cost.

  • Profitable in the short term while posing a more negligible risk
  • ASBA procedure without hiccups
  • Meet long-term objectives
  • There will be no brokerage fees if you apply for a new IPO.
  • Can become a part of the company’s success story.

Upcoming IPOs in India for 2022 

Here are the following upcoming IPOs in India.

LIC

Estimated Date:- Mid-March 2022

The initial public offering (IPO) of India’s most extensive government-owned life insurance has sparked interest among investors. It will be India’s largest-ever IPO when it is issued, with an issue size of roughly Rs. 70,000 to Rs. 80,000 crores. The Central Government hopes to raise Rs. 2.1 lakh crores from the selling of LIC.

Byju’s

This up coming IPO has received a lot of attention and is highly anticipated.

According to reports, India’s largest EdTech firm is in the pre-IPO stage. It is likely to file its IPO papers with the market regulator after the fiscal year. The IPO could take place in mid-2022.

Adani Wilmar

Adani Wilmar is one of the country’s most prominent FMCG players. In August 2021, it submitted its DRHP with the market regulator for its Rs. 3,600 crore public offering. This IPO will only consist of new equity shares with no secondary offering.

Go Airlines

Go Airlines, India’s popular low-cost carrier, plans to raise Rs. Three thousand six hundred crores through an initial public offering (IPO). Each share will be worth Rs. 10 in face value. Go Airlines has filed documents with SEBI in preparation for its first public offering.

MobiKwik

MobiKwik, a leading digital payment provider, has filed for an initial public offering (IPO) in July 2021. MobiKwik’s IPO would combine a new equity share issue of Rs. One thousand five hundred crores and an Rs. 400 crore offer for sale by chosen promoters and shareholders. Currently, the platform serves 3 million retailers and more than 120 million customers across the country.

Bajaj Energy

Bajaj Energy is a crucial private operator in the thermal power generation industry. It has a total installed capacity of 24,330 MW. Through this IPO, the company hopes to raise Rs. 5,450 crores.

The Bajaj Energy IPO would include a fresh issue share of Rs. Five thousand one hundred fifty crores and an offer for sale of Rs. 300 shares.

Things You Should Know Before Investing in Upcoming IPOs

Analyze the Company’s Financials

Start by analyzing the company’s balance sheet, income statement, and cash flow statement. The balance sheet will provide you with an in-depth look at the company’s assets and liabilities. In contrast, the income statement and cash flow statement will light the company’s income/expenses and cash inflow/outflow. 

Look for Crucial Financial Ratios

 Financial ratios are frequently the best indicators of a company’s health. You may determine the company’s standing and financial standing by applying financial ratios and comparing it to other companies in a comparable industry. Examine the following financial ratios:

  • Liquid Ratios
  • Profitability Ratios

Share Issue Method

There are two ways to offer shares in an IPO: fixed price issue technique and book building issue method. A fixed price issue method is one in which the shares are issued at a pre-determined price. The investor is required to pay the specified amount as the bid. In contrast, the book-building method provides a price band of not more than 20% with a minimum price (floor price) and maximum price (cap price), and investors bid for the upcoming IPO based on any price within the band. The ultimate price is established after the IPO bidding is closed.

The Historical Stance and the Future Chances

Similarly, some businesses began small but grew to become among the greatest. Therefore, before selecting to invest, it is critical to consider the company’s previous presence and performance and its future standing and potential.

Analyze the company’s director’s report and look for the section on the company’s previous performance and future ambitions. Check to discover whether there are any well-known individuals among the company’s directors or promoters.

Disclosure of Fund Application

According to SEBI regulations, any new firm that wishes to issue its shares on the stock exchange must disclose the money utilization in its prospectus.

Since an IPO listing is a method of raising capital for a company, they must reassure the general public about its use. The red-herring prospectus includes such disclosure and relevant information. So before investing in an IPO, don’t forget to read the red-herring prospectus. It can provide detailed information about the company’s future intentions and how the funds will be used. 

Do Not Get into the Hype

There is a high likelihood of creating a buzz in an upcoming IPO to convince the general public to invest their money and make the IPO listing a success. Therefore, the corporations appoint underwriters to oversee the entire IPO listing and evaluation process. Underwriters’ responsibility is to develop traction for the successful launch of the IPO.

Investing in Initial Public Offerings (IPOs) is an excellent strategy to diversify your portfolio and position yourself for long-term benefits and could gain significant benefits from IPOs.

Here are the following things you should consider before investing in an Upcoming IPO

  1. Abridged Prospectus
  2. Draft Red Herring Prospectus (DRHP) 
  3. ASBA
  4. Red Herring Prospectus
  5. Price Band
  6. Book Building Process
  7. Offer Date
  8. Lot size
  9. Minimum Subscription
  10.  Floor Price
  11.  Cut-off Price
  12.  Oversubscribed
  13.  Oversubscription
  14.  Underwriter
  15.  Listing Date

There are various services you can avail to ensure you don’t miss out on the Upcoming IPOs in  India. IIFL is among the leading stockbrokers in India that will provide you with alot of information. Not only do they provide information about the upcoming IPOs but also an array of infomratoion including of the Share Market. They provide the latest information and you be updated via Share Market Today. Don’t miss out on any information about the Stock Market and maximize your returns.

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