15 Days Price Change
Summary
You may be a stock market professional or not, however you must have seen those large headlines in the newspaper about an IPO making big profits. Which highlights the large capital that IPOs generate, showing average returns of 55.91% (Till April 2024) at the listing date .
The IPO is a leading part of the finance world. But what they are and why companies choose them over other forms.
An Initial Public Offering (IPO) is the procedure by which a privately held firm begins to promote its shares to the broader public for the first time. This is a significant step for an organisation because it allows them to accept payments from traders and allows both small and large investors to purchase stock in the business. It appears as though the business is opening its doors to allow anyone to become a part-owner and provide early investors with the chance to realise profits.
Companies choose to go public through initial public offerings (IPOs) for a number of reasons, the main ones are :
An Understanding of the Two Main Initial Public Offering (IPO) Types
Major difference between in book building and FPI -
In Book Building, securities are offered at prices above or equal to the floor prices, while in a Fixed Price Offering (FPI), securities are offered at a fixed price. With Book Building, demand can be assessed daily as the book is built. However, in an FPI, demand is only known at the close of the issue.
List of Top 15 Mainboard IPOs listed in 2024 -
Companies |
Issue price |
Listed Price |
Listing Gain |
151 |
421 |
178.81% |
|
135 |
305 |
125.93% |
|
142 |
265 |
86.62% |
|
28 |
40 |
42.86% |
|
41 |
56 |
36.59% |
|
Bharti Hexacom Limited IPO | 570 | 755 | 32.46% |
Platinum Industries Limited IPO |
171 |
225 |
31.58% |
155 |
186 |
20% |
|
186 |
215 |
15.59% |
|
331 |
370 |
11.78% |
|
715 |
795 |
11.19% |
|
418 |
460 |
10.05% |
|
311 |
339.5 |
9.16% |
|
210 |
225 |
7.14% |
|
360 |
365 |
1.39% |
The process of applying for an Initial Public Offering (IPO) is simplified and can be completed offline using traditional paper-based procedures or online using digital platforms. Online and on digital platforms: Investors can easily apply for an IPO by contacting brokers through their websites, their UPI ID, or online banking services.
Procedure and actions to take while making investments online:
Demat and Bank Account: Since your shares will be held in this account, you need have a Demat account which needs to connect to your bank account. (Holding shares and other securities electronically is possible with a Demat account. Nevertheless, you will require a trading account in addition to a Demat account if you choose to sell these shares in the future.
Research: Analysing the existing or upcoming IPO you're interested in. Take into account the company's financials, competitive advantage, growth forecasts, and IPO pricing. By reading their Red Herring Prospectus, you can also apply different valuation methods or evaluations to recent initial public offerings. (A Red Herring Prospectus is an initial document filed with the Securities and Exchange Board of India (SEBI) before an Initial Public Offering (IPO) in India. It provides essential information to investors, helping them make an informed decision about the IPO, which does not include complete particulars of the quantum or price of the securities included therein).
Choose the investor category you want to apply under: retail or high net worth investor (HNI). This will specify how many lots you can apply for and the minimum application amount.
Application Process: Go to the IPO part of your broker's website or online banking, log in, and fill out the application by providing information about the number of shares, the bid price, and your UPI ID to make payments. (Selecting the upper price limit increases the likelihood of a share allocation in the event that the IPO is fully subscribed).
Payment Gateway and Subsequent Process - Select your preferred payment method, which can be either net banking or UPI, and proceed to submit your IPO application. Once your application is submitted, the amount will be automatically blocked in your bank account. If you are allotted shares, you will receive a notification of the debit from your bank, and the shares will be credited to your Demat account within a week. If the shares are not allotted to you, the blocked amount will be released or refunded.
The offline method's procedure
Even while many people find online IPO applications more convenient, other people still choose to submit offline applications as the more conventional option. You must first get an IPO application form from your bank or broker in order to apply for an IPO offline.
Fill out the form with your personal details, such as your name, address, PAN number, and the details of your Demat account. Specify the number of shares you wish to apply for and the price you’re willing to pay. After completing the form, sign it to confirm your details and submit it back to the broker or bank. Your application will be processed, and if you’re allotted shares, they will be credited to your Demat account. If not, the blocked amount in your bank account will be released. This process allows you to participate in an IPO without the need for an online transaction.
Sell or Purchase Share (Tentative Price)
Company | Industry | Stock P/E | P/B | Company rating | MCAP (in Cr.) | Current Price |
---|---|---|---|---|---|---|
Pharmeasy | e-Commerce | -2.5 | 2.4 | 6240 | 10 | |
Reliance Retail | Retailing | 141.5 | 23 | 698659 | 1400 | |
Orbis Financial | Finance - Investment | 84.8 | 18.2 | 4056 | 430 |
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