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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.
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.
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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on stock picking, poring over excel sheets, financial news, analyzing market trends, tracking the Sensex, researching company fundamentals, comparing mutual funds, reading financial reports, trying to predict the future & losing your sanity!
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