IPOs

The stock markets can be classified into two categories: primary markets and secondary markets. The primary markets, where the action starts, allow the general public to invest in promising initial public offerings (IPOs). An IPO, which stands for Initial Public Offering, serves as the gateway for a previously private business to open its shares to public trading on an exchange. The process of going public involves the enlistment of investment banks to ensure that the IPO generates a substantial infusion of capital from the public.

The process involves significant due diligence, advertising, and regulatory compliance efforts. The public buying the newly offered shares includes both retail and institutional investors, while those selling the shares include promoters and initial investors of the company.

What are Upcoming IPOs?

The upcoming IPOs of 2024 are those of companies that have filed their DHRP, or Draft Red Herring Prospectus, and are anticipated to launch in the upcoming weeks or months of 2024.

Staying well-informed about the latest IPOs in the stock market is crucial because –

• With thorough research on the companies and market sentiments surrounding IPOs, you can effectively strategize your IPO investment. This will empower you to make well-informed decisions that align with your investment goals.
• Even if you don’t invest in an IPO immediately, you can still monitor the performance of upcoming IPOs. Monitoring IPO performance will provide valuable insight into market sentiment towards IPOs and their respective sectors. This will enhance your comprehension of the capital markets overall and assist you in timing your investments more effectively.

Who Can Invest in an IPO?

(SEBI) permits four types of investors to participate in the IPO process –

1. Qualified institutional investors (QIIs): QIIs comprise of commercial banks, public institutions, mutual funds, and foreign portfolio investors registered with SEBI. As per SEBI regulations, institutional investors are obligated to sign a contract that imposes a 90-day lock-in period during the IPO. This measure is implemented to ensure stability and minimize volatility during the entire IPO process.
2. Anchor investors: High-net-worth investors (HNIs) who apply for the IPO and possess assets valued at more than ₹10 crores are deemed anchor investors. They are permitted to acquire a maximum of 60% of the shares allocated for the QIIs.
3. Retail investors: Retail investors have an incredible opportunity to invest up to ₹2 lakhs in every new IPO that comes their way. And not only that, companies are now required to reserve a significant 35% of the issue exclusively for retail investors, ensuring they get a fair chance at the shares. Plus, here’s an extra layer of protection: if the IPO happens to be oversubscribed, all retail investors are guaranteed to receive at least 1 lot of shares. And in the rare case that distributing one lot per investor becomes impractical, a reliable lottery system will step in to fairly allocate the IPO shares to the general public. Rest assured, the playing field has been leveled, and retail investors now have an even greater opportunity to achieve their financial goals.
4. High-net-worth individuals (HNIs) or non-institutional investors (NIIs): An investor is classified as a High Net Worth Individual (HNI) when they choose to invest an amount between ₹2 lakhs and ₹5 lakhs in an IPO. On the other hand, non-institutional investors (NIIs) are institutions that aim to invest more than ₹2 lakhs. One key distinction between a Qualified Institutional Investor (QII) and an NII is that NIIs are not obligated to be registered with SEBI.

List of Upcoming IPOs in 2024

Go Airlines

India’s popular budget airline, Go Airlines, aims to raise ₹3,600 crores through its IPO, with a face value of ₹10 per share. The airline has filed papers with SEBI for its initial public offering.

MobiKwik

The leading digital payment platform, MobiKwik, filed for its IPO in July 2021. The MobiKwik IPO is set to feature a fresh equity share issue of Rs. 1,500 crores along with an offer for sale by selected promoters and shareholders worth Rs. 400 crores. With a current customer base of more than 120 million and serving 3 million retailers nationwide, MobiKwik’s IPO is poised to make a significant impact in the market.

Penna Cement

Penna Cement, a premier cement manufacturer, has unveiled its ambitious plan to raise a staggering ₹1,550 crores through its imminent initial public offering. This astute move will involve a judicious blend of a fresh share issue valued at ₹1,300 crores, along with an enticing offer for sale (OFS) worth ₹250 crores. Encouragingly, Penna Cement has already garnered the prestigious approval of the Securities and Exchange Board of India (SEBI) for the commencement of its highly-anticipated IPO.

Bolstered by an unrivaled presence in the lucrative markets of Eastern and Southern India, Penna Cement stands tall with an awe-inspiring annual manufacturing capacity of approximately 10 million tonnes. This impressive feat, coupled with Penna Cement’s unwavering commitment to unmatched quality, sets the stage for an IPO that promises to be a game-changer.

Keventer Agro

Keventer Agro is a leading food and beverage company in Eastern India and it is a subsidiary of the renowned Keventer Group. The company is preparing to launch an IPO with the aim of raising ₹800 crores, which is projected to elevate its valuation to a staggering ₹2,500 crores post the public offering.

Fincare Small Finance Bank

Fincare Small Finance Bank has filed for its IPO in May 2021, presenting a significant opportunity for investors. This IPO will consist of a combination of fresh share issuance, amounting to ₹330 crores, as well as an offer for sale of shares totaling ₹1,000 crores. 

Remarkably, Fincare Small Finance Bank has achieved exceptional growth between FY18 and FY20, surpassing all other small financing entities in the country. This impressive track record further solidifies its position as a top player in the industry. Investors can confidently consider the potential of this bank, given its remarkable growth trajectory.

PharmEasy

API Holdings, the parent company of PharmEasy, India’s premier digital healthcare platform, has officially submitted its IPO application to the market regulator SEBI in November 2021. The much-anticipated PharmEasy IPO is set to raise a substantial ₹6,250 crores, making it a monumental milestone for the company. It’s worth noting that this extraordinary IPO will exclusively consist of fresh shares, emphasizing the unwavering confidence of our shareholders and investors in our vision. Rest assured, not a single stakeholder will be parting with their shares during this momentous event.

Bajaj Energy

Bajaj Energy stands out as a prominent player in the arena of thermal power generation, representing the prowess of the private sector. With an impressive gross capacity of 24,330 MW, its commitment to power generation is unrivaled. In an ambitious move, the company aims to raise a staggering ₹5,450 crores through its upcoming IPO. This remarkable IPO will comprise a fresh issue share of ₹5,150 crores, supplemented by an enticing offer for sale of shares worth ₹300 crores. Bajaj Energy’s visionary endeavor is set to captivate investors and unlock a world of opportunities.

Droom

The online automobile marketplace Droom is making big moves, with plans to go public through an IPO in 2024. The company has filed papers with SEBI for an offering of ₹3,000 crores. This substantial amount will consist of a fresh share issue of ₹2,000 crores and an OFS of around ₹1,000 crores. The intentions for these funds are diverse, encompassing organic and inorganic growth initiatives, as well as general corporate expenses. Droom’s strategic and forward-thinking approach positions the company for significant expansion and development in the coming years.

Navi Technologies

Co-founded by Sachin Bansal and Ankit Agarwal, Navi operates in the realms of lending, microfinance, health insurance, and mutual funds. Exciting news is that Navi has already set in motion the process of its much-anticipated public offering. In fact, there are plans to potentially file its DRHP as early as the first quarter of next year.

Snapdeal

Snapdeal, one of India’s leading e-commerce platforms, is set to issue fresh shares worth ₹1,250 crores through its IPO, alongside an offer for the sale of shares by some of Snapdeal’s current shareholders and investors.

Ola

Ola is a major Indian tech start-up that is set to launch its public offering in 2024. While the details are not yet finalized, several reports indicate that the Ola IPO will have an impressive issue size of ₹15,000 crores. The company has recently concluded its pre-IPO funding round, further fueling excitement for its upcoming debut in the stock market.

BYJU’s

BYJU’s, the Edtech giant founded in 2012, achieved unicorn status in 2018. Now, it is poised to take its journey even further by launching its highly anticipated public offering. According to reports, this strategic move is expected to yield an impressive valuation of $40-$45 billion for the company.

What is the Process of Investing in an IPO Online?

The process of investing in an IPO is a simple one. Follow these simple steps to invest in an IPO via the Angel One app:

1. Login to your Angel One account and go to the IPO section from the Home page. After due diligence, select the IPO you want to invest in under ‘Open & Upcoming’ IPOs. 
2. Click on ‘APPLY NOW’ to begin the process of investment.
3. Enter the number of lots, the bidding price (in case of a book building issue), and your UPI ID.
4. Click on ‘APPLY FOR IPO’ and confirm your bid.
5. Accept the payment mandate request sent to your UPI ID to block the necessary funds. Your IPO investment process is now complete!

You can also apply for an IPO directly from your bank account via ASBA (Application Supported by Blocked Amount) if your account has sufficient balance. Although your application is submitted, there’s no guarantee that you will receive the exact number of shares you applied for.The following are the reasons why that might happen – 

1. Oversubscription of the IPO – In the event of oversubscription, the company may choose to distribute the available shares on a pro-rata basis, meaning that each investor will receive a proportionate amount of the requested shares.
2. Rejection of your application – Your IPO application might be rejected if you submit incomplete or incorrect information or if you do not have adequate funds. In such a scenario, your investment will not be utilized and you will not receive any shares in return.