A Guide to the Upcoming IPOs of 2024

A Guide to the Upcoming IPOs of 2024

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The growth of some Indian companies is praiseworthy. Many businesses have submitted their Draft Red Herring Prospectuses (DRHPs), stating that they plan to go public with IPOs in 2024. This article provides details on some of the most highly-awaited upcoming IPOs, including the issue price, lot size, and schedule. For investors, understanding IPOs is key to strategizing their portfolios. It also explains what IPOs are, who can invest in them, and how to apply them.

Understanding IPOs

An initial public offering (IPO) refers to the process where a private company offers its shares to the public for the first time. It lists these shares on a stock exchange. This makes it a publicly traded firm. As a result, the business can raise money from regular investors.

When a company files its draft red herring prospectus (DRHP), it shows its intent to launch an IPO. The DRHP includes details of the upcoming IPO such as the price band, lot size, schedule, etc.

Upcoming IPO List in India

The following is the breakdown of upcoming IPOs in India, providing investors with an opportunity to participate in new stock offerings. Investors can assess these offerings and decide their participation based on factors such as issue price, lot size, and the company’s profile.

Company Name Issue Price (₹) Lot Size Open Date Close Date Listing Date
Vibhor Steel Tubes Ltd ₹141.00 99 shares Feb 13, 2024 Feb 15, 2024 Feb 20, 2024
Interiors & More Ltd ₹216.00 600 shares Feb 15, 2024 Feb 20, 2024 Feb 23, 2024
Kalahridhaan Trendz Ltd ₹45.00 3,000 shares Feb 15, 2024 Feb 20, 2024 To be announced
Polysil Irrigation Systems Limited IPO ₹54.00 2000 shares Feb 8, 2024 Feb 13, 2024 Feb 16, 2024
Alpex Solar Limited IPO ₹115.00 1200 shares Feb 08, 2024 Feb 12, 2024 Feb 15, 2024

Types of Investors in IPOs

There are four main categories of investors who can participate in IPO bidding:

  • Qualified Institutional Buyers (QIBs): Institutions like mutual funds, banks, and insurance companies meeting certain financial criteria can bid in large quantities.
  • Anchor Investors: Institutional investors who are allotted shares before the IPO opens to stabilise the price and generate investor confidence.
  • Retail Individual Investors: Small individual investors can bid for a limited number of shares, often with smaller investment amounts.
  • High Net Worth Individuals (HNIs) and Non-Institutional Investors: Individuals with substantial wealth who can bid for larger quantities than retail investors but are not institutional entities.

Each type of investor has different eligibility criteria in terms of the amount they can invest.

How to Improve Chances of IPO Allotment

You can take certain steps to try and improve your chances of IPO allotment:

  • Apply through multiple Demat accounts: Increase your chances by applying for the IPO using multiple Demat accounts, and spreading your applications across different platforms or brokers.
  • Bid at the higher end of the price band: Opt for a bid price closer to the upper limit of the price range set by the company. This will show stronger interest and potentially increase your chance of allocation.
  • Ensure you apply before the deadline: Submit your application before the IPO subscription window closes to avoid missing out on the opportunity.
  • Apply under the ‘Shareholder’ category: If eligible, apply under the ‘Shareholder’ category by holding shares in the parent company to potentially enhance your chances of allotment.

Documents Required for IPO Application

The following is the list of several documents that one needs to submit when applying for IPO application:

  • PAN Card
  • Demat Account
  • UPI ID for payment
  • Bank account with enough balance if applying through ASBA

You must also research the company before investing in its IPO.

How to Apply for an Upcoming IPO

One may consider following these key steps when applying for an IPO through a broker:

  1. Access your online trading app
  2. Select the IPO tab and choose the IPO you want
  3. Enter bid details like lot size and price
  4. Provide UPI ID and submit the bid
  5. Authorise the transaction in your UPI app

Conclusion

The upcoming IPOs in 2024 present great opportunities for public investors in India. However, with every IPO comes its share of risk, so conducting thorough research is crucial. Investors must evaluate factors like valuations, financials, business prospects, management quality, and peer comparisons before participating. There are many reputable online trading apps available in the market that make the procedure easy for one who is applying for an IPO. One may consider using the BlinkX app for this purpose. The BlinkX platform offers high-velocity trade execution capabilities to help investors capitalise on fleeting market opportunities. The user interface facilitates convenient navigation, allowing traders to stay updated on stocks via alerts and apply various trading strategies.

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