When a privately held company decides to raise capital to expand its reach to institutional and individual investors, it must follow a number of rules and regulations governed by the Securities and Exchange Board of India (SEBI) to offer its securities to the general public through stock issuance.
This process of listing the new shares is known as an initial public offering (IPO). Following a protracted procedure, the company becomes public and is publicly traded on the stock exchange. There is a time lag between the IPO launch and the stock being offered on the secondary market; thus, the early bird gets the worm!
Venture capitalists, private equity investors, and retail investors who monitor forthcoming IPO gain from investing in an IPO to take advantage of possibly underpriced stocks at an early stage.
Here is how to know about all new IPO listings:
How to keep track of all IPOs:
If you’re looking for a way to keep track of impending IPOs, using IPO-watching apps is exactly what you need. The app makes it easier to keep track of upcoming IPOs in India. It provides a comprehensive list of new IPOs. The app also offers a separate section dedicated to IPO news, such as IPO size, price band, lot size, face value, retail allocation, issue open and close dates, and listing dates, among others.
The IPO Watch is similar to the IPO Calendar in that it provides insights into the IPO issuer firm, promoters, financial statements, outstanding litigation, and other critical data that is consistent with the specific business’s red herring prospectus.
The shares selected at the time of IPO issue are free of booking fees and have the potential to explode on listing day. In short, the new IPO stock delivers both listing gains and assistance in meeting long-term financial objectives. To see this happen, you should be able to monitor upcoming IPOs in advance. You can also think of option trading along with looking for IPOs.
The IPO Watch section also includes information on IPO oversubscription and research studies on IPOs, which can help an investor decide whether or not to invest in a specific IPO. Aside from that, the newest IPO information can be tracked via stock exchanges such as the NSE and BSE. Similar to the app, the NSE and BSE provide accurate, real, and dependable information about impending IPOs.
However, with the app, you may choose to receive the latest IPO updates to your email address. In fact, you may get professional advice and analyst assessments for all upcoming IPOs. You can also get insights into NSE mobile trading.
However, when watching forthcoming IPOs, it is best to keep an open mind because not all IPOs may succeed as many did. So, it is critical to review the analyst reports, red herring prospectus, and fundamentals of the issuer company. If the company’s fundamentals are robust, the share price is likely to rise even after its IPO.
Only invest in the IPO if you believe it is trustworthy; otherwise, do not be swayed by its beauty. Apps like Probo help investors track IPO details.