Current & Upcoming IPO 2023
Mainboard IPO 2023
|Divgi TorqTransfer Systems|
|Sah Polymers||30 Dec||4 Jan|
SME IPO 2023
|ResGen||28 Feb||2 Mar|
|ITCONS E-Solutions||28 Feb||2 Mar|
|Amanaya Ventures||24 Feb||28 Feb|
|SVJ Enterprises||23 Feb||28 Feb|
|Srivasavi Adhesive Tapes||23 Feb||28 Feb|
|Patron Exim||21 Feb||24 Feb|
|Sealmatic India||17 Feb||21 Feb|
|Macfos||17 Feb||21 Feb|
|Viaz Tyres||16 Feb||21 Feb|
What is IPO?
IPO stands for Initial Public Offering. It is the process by which a private company offers shares of its stock to the public for the first time.
When a company decides to go public through an IPO, it hires an investment bank or group of banks to help it prepare the offering. The investment bank(s) will help the company determine the optimal offering price and number of shares to issue, and then market the shares to potential investors.
Once the IPO is complete, the company’s shares are traded on a public stock exchange, such as the New York Stock Exchange or Nasdaq. This means that anyone can buy and sell shares in the company, and the price of the shares will fluctuate based on supply and demand.
Going public through an IPO can provide a company with access to significant capital and increased visibility, but it also involves significant regulatory requirements and public scrutiny.
What is Gray Market price?
Gray market price refers to the price at which shares of a company are traded unofficially before they are listed on a stock exchange. This can happen when investors or brokers obtain shares of a company through channels other than the official IPO allocation process, such as through private sales or through connections with insiders.
The gray market price is determined by supply and demand, and can sometimes be an indication of the market’s perception of the value of the company’s shares. However, it is important to note that gray market prices are not necessarily indicative of the actual price at which the shares will trade once they are listed on a stock exchange.
It is also important to note that trading shares in the gray market can be risky and is often illegal in some countries. Investors who trade in the gray market may not have the same protections and legal rights as those who purchase shares through the official IPO allocation process.
Is IPO a profitable investment strategy?
Whether an IPO is a profitable investment strategy depends on various factors, such as the company’s financial health, growth prospects, competitive landscape, and overall market conditions. Some IPOs can generate significant returns for investors, while others can result in losses.
Investing in an IPO can be risky because it is difficult to gauge the value of a company that has not yet established a public track record. Investors may also face a lock-up period, during which they cannot sell their shares for a certain period after the IPO.
Additionally, the hype surrounding an IPO can lead to overvaluation, which means that the IPO price may not accurately reflect the company’s true value. In some cases, the stock may drop below the IPO price after the initial surge in demand dissipates.
In summary, investing in an IPO can be profitable, but it is also a risky investment strategy that requires careful evaluation of the company and market conditions. It is important for investors to do their due diligence, understand the risks involved, and consult with a financial advisor before making any investment decisions.
How to increase the chances of getting allotment in an over-subscribed IPO?
Getting allotment in an oversubscribed IPO can be challenging, but there are a few strategies that investors can use to increase their chances:
Apply with multiple demat accounts: One way to increase your chances of getting allotment is to apply for the IPO using multiple demat accounts. Each demat account is treated as a separate application, so applying with multiple accounts can increase your chances of getting allotment.
Apply for a smaller number of shares: Applying for a smaller number of shares can increase your chances of getting allotment, as smaller applications may be given higher priority than larger ones.
Bid at the cut-off price: Bidding at the cut-off price can also increase your chances of getting allotment, as this price is usually set at a level that is expected to generate high demand from investors.
Apply in the retail category: Many IPOs have a separate retail category for small investors, which may have a higher chance of getting allotment compared to the non-retail category.
Apply on the last day of the IPO: Applying on the last day of the IPO can also increase your chances of getting allotment, as the demand and subscription levels are typically known at that point, which can help you make an informed decision on the number of shares to apply for.
It is important to note that these strategies do not guarantee allotment, as the allotment process is subject to various factors such as the demand from investors, the number of shares available, and the company’s policies. It is also important to do your research, understand the risks involved, and consult with a financial advisor before making any investment decisions.
What is SME IPO?
SME IPO stands for Small and Medium Enterprise IPO. It is a type of Initial Public Offering (IPO) that is specifically designed for small and medium-sized companies that do not meet the requirements for a regular IPO. SME IPOs are typically offered by companies that are in the early stages of their growth and have a smaller market capitalization.
The regulatory framework for SME IPOs in India is governed by the Securities and Exchange Board of India (SEBI). The SEBI has prescribed a separate set of guidelines for SME IPOs that are designed to make the IPO process simpler and more cost-effective for small companies. Some of the key features of SME IPOs include:
Lower minimum issue size: The minimum issue size for SME IPOs is lower compared to regular IPOs. In India, the minimum issue size for SME IPOs is Rs. 10 crore.
Simplified disclosure requirements: SMEs are required to disclose less information compared to regular IPOs, which makes the process simpler and more cost-effective.
Market making: SEBI has made market making compulsory for SME IPOs for a period of three years from the date of listing. This is done to ensure liquidity in the shares of SMEs.
Separate trading platform: SME IPOs are listed on a separate trading platform called the SME Exchange, which is designed specifically for SMEs.
SME IPOs can be a good investment opportunity for investors who are willing to take a higher risk for potentially higher returns. However, it is important to do your research, understand the risks involved, and consult with a financial advisor before making any investment decisions.