India has slowly and steadily seen an increase in the number of IPOs each year. This is due to the incredible economic development over the past 2 decades and several encouraging FDI policies. But there is still a long way to go before we see the same IPO rush as the US. There have been close to 164 IPOs in India since 2008 as compared to 369 IPOs in the US in 2020 alone.
This blog will walk you through a list of the current & upcoming IPOs in India in 2020. Let’s start off by understanding more about IPOs. You can consult a Cube Wealth coach or download a Cube Wealth application.
By law, a private company can only have a small number of investors, beyond which they must go public to raise capital. What does it mean to go public? Launching an Initial Public Offering (IPO)! During an IPO, a private company issues shares that can be bought by investors outside the organization. The IPO allows the company to trade on the stock exchange which means more influx of cash that can help the company grow. You can consult a Cube Wealth coach or download a Cube Wealth application.
Industry giants like Google, Apple, Facebook, Tesla, Amazon, Microsoft, and more, launched IPOs in order to trade on the stock exchange. While these companies are juggernauts now, nobody could have predicted the rise of tech companies and the possibility of Apple & Microsoft overtaking IBM and HP. Naturally, this means that there are benefits to investing in an IPO since you can buy cheap & if the company does well, the value of the initial shares will be astronomical.
But not every company becomes a Microsoft or Alibaba. Data suggests that 100 IPOs out of the 164 that have been launched since 2008 are trading below their initial issue price. Apart from this concerning stat, there are other risks to IPOs such as being issued lower than expected number of shares, change in leadership, insufficient information about the company, and more.
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Ans. An IPO, or Initial Public Offering, is the process by which a private company offers its shares to the public for the first time, allowing individuals and institutional investors to purchase shares and become shareholders in the company.
Ans. Current IPOs are those that are actively available for investment, and their subscription period is open. Upcoming IPOs, on the other hand, are IPOs that have been announced but have not yet started their subscription process.
Ans. You can stay updated on upcoming IPOs by following financial news sources, subscribing to IPO alert services provided by brokerage firms, or checking the official websites of stock exchanges for IPO announcements.
To invest in an IPO, you typically need to have a brokerage account with a participating financial institution. Once the IPO is announced, you can place an order through your broker during the IPO's subscription period.
Actively monitoring both present and upcoming Initial Public Offerings (IPOs) holds a vital place within an investment strategy. These IPOs present an opportunity for investors to engage with recently listed companies and potentially benefit from their growth and profit potential. By staying well-informed about the current IPO landscape and those expected in the future, investors can make informed choices, enhance their portfolio diversification, and potentially seize promising investment prospects. However, it is crucial to emphasize the significance of diligent research and consideration of factors such as a company's financial stability, industry dynamics, and prevailing market conditions before participating in any IPO. Remaining vigilant and well-informed remains essential for optimizing these investment opportunities.
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