Upcoming Big IPO in India : 2024 - 25
The Indian IPO market is on the boil. Slowly but surely the platform is being laid for several IPOs in India even if it means that after a couple of years all is quiet again. Infos sharing companies technology, e-Commerce, healthcare, financial services among others are set to float their first shares on the stock exchange. These IPOs not only offer good buying propositions but also symbolize the rising Indian economic sentiment.
Let me expand a few details of this in the following blog where we will explore some of the prominent IPOs in India that could dominate the headlines in 2024.
What is IPO ?
An IPO in India is the offering of the security of a company to the general public for the first time Its likewise referred to as flotation. This process of transforming from a private company to a going public company is a crucial moment for organizations. This makes it possible for firms to seek funds from public investors in the capital market through floating their shares in www.bseindia.com or www.nseindia.com IPOs or Initial Public Offering, has been one of the predominant facet of the Indian capital market and have evolved a lot to what is today considered as one of the perfect way of fund mobilization to many companies as well as those who want to invest in those high
The IPO Process in India
The procedure of going for an IPO in the Indian capital market is controlled by SEBI to make the process free from frauds and in favor of investors. The process of going for an IPO begins when a business that finds itself wanting to expand or clear debts goes out for public mobilization. The first process is the selection of all manner of intermediaries, including but not limited to merchant bankers, underwriters and legal consultants in order to wade through all the regulations and market conditions.
After it is decided, the company prepares and submits a Draft Red Herring Prospectus (DRHP) with SEBI disclosing the company’s business plan, financial plans, prospects of risks involved, and how the funds shall be utilized. It is understood by participants and SEBI reviews this document for compliance to regulations and transparency before approval. After approval it determines the price for each of its shares and comes up with the dates for the IPO.
Indian IPOs use two usual methods for its price sediment – fixed price method and book building. The fixed price method entails the company determining the price which the shares in the company will be sold at. In the book-building method, it is a method of bidding within a given price limit and the final price also depends on the demand.
The shares are then made available to three main categories of investors: Nonce sensitive accreditation include, retail investors, qualified institutional buyers (QIBs) and non institutional investors (NIIs). After the subscription process, the company determines the proportion of the share and comes into the trading list of stock exchanges.
Benefits of IPOs
Capital for Growth: IPO on its part offers firms a massive fundraising capacity that can be employed in tasks such as; expansion, development of new products, acquisitions or paying off existing liabilities.
Increased Visibility: In a way, going public contributes to the enhancement of the organization’s image.” A publicly listed company is more attractive to investors, partners, and customers to the benefit of its business.
Liquidity for Shareholders: IPO makes the corporation’s common equity more liquid which in turn enables early investors or shareholders, owners, and employees to cash in on their stake.
Diversification of Ownership: In becoming a public company, ownership also disperses thus having an advantage of managing the control of promoters and establishing a reduction for founders.
Risks and Challenges in Most successful ipos in india
Market Volatility: One of the most important facts about IPOs is that they are very vulnerable to the market situation. It involves the risks associated with the market situation and unfavorable conditions in the economy which in one way or the other result in low subscription and hence a problem in raising capital for a company.
Regulatory Compliance: After listing or floating the company follows very rigid rules and regulation. This includes preparing and submitting quarterly/annual financial statements, policy compliance with regards to corporate governing standards and rules and regulation established by SEBI.
Loss of Control: Its sale on the market means that sometimes the founders may practice little authority over the company. Some stockholders are the public and therefore require the managers to deliver an account of themselves while large decisions may be dictated by stock market sentiment.
Recent Trends
Currently and especially after 2020 market induced increase in pandemic the Indian IPO market has grown rapidly. Businesses across the technology, finance, trading, medicine, and energy fields are now therefore turning to the IPO market for financing. This enthusiasm was seen in IPOs from three small food delivery platforms and an online pharmacy in the last few years of IPO demand By increasing stakes and being listed into the primary market, Zomato, Paytm, and Nykaa have attracted record-breaking retail investors. Recent days has Most successful ipos in india
Upcoming big ipo in india OR future ipo in india 2024 - 25
1. Freshara Agro Exports
Sector: Agriculture
Market Cap: 273 Crores
GMP: Rs. 50/-
Freshara Agro Exports is an India based specialty exporter of fresh agricultural produce. Being an organization that consciously observes quality and environmental pull string, Freshara obtains fruits, vegetables, and other farm products from farmers and local producers thereby supplying fresh produce to international markets. They use modern practice in culturing the agricultural products and the packaging of the produce during transportation means ensures the quality and nutrition value is retained.
To promote safe food and keep up with the international standards, Freshara Agro Exports got certifications of GlobalGAP as well as HACCP which provides better quality products to the foreign market. While ensuring Indian produce gets to the international market, Freshara equally uplifts the dotted mantle of Indian farming and the rural people by providing business opportunities that are favorable to them. Being involved in the industry of agro exports the company Freshara Agro Exports has a well-developed logistic stream allowing for focused growth of operation throughout the world; India has benefited from such a company in terms of agricultural exports’ development.
2. Fab India
Sector: Retail & Textile
Market Cap: ~8000 Crores
GMP: NA
Fab India is one of the most well-known companies in India in the field of consumer products focusing on Indian arts and crafts, cloth products, and natural products. Founded in 1960 John Bissell its primary goal was to offer a marketplace for the rural craftsmen for proper employment. Fab India a store is offering apparels, furnishings for the house, body care items along with some foodstuffs which are the modern look Indian products offering Indian textiles.
The brand is most famous for using handloom fabrics and natural dyes with more than 55000 artisans working with the company across the country. Fab India especially offers Kurtas, Sarees and Dupattas are comfortable and fashionable and represents a blend of tradition and the latest trend.
The company also pays close attention to the sustainability of its products: the stores themselves are often decorated in earth-toned organic-looking materials. Thus, Fab India has grown to be a reputable company for anyone who desires Indian quality products and has been produced in a manner that respects ethical standards.
3. OYO Hotels
Sector: Hospitality
Market Cap: 39000 Crores
GMP: Rs. 60-68/-
The company is in the hospitality line and it has quickly expanded and started operations in 2013 in India. It was started by Ritesh Agarwal and initially it was essentially OYO Rooms that connects customers with standardized and affordable accommodations in the form of ‘budget hotels’. Oyo grew exponentially through acquisitions, getting into agreements with independent hotels, enhancing guests’ experiences through franchise requirements on room offerings, booking platforms and employees’ management.
Oyo is the modern hoteling and room renting company with a web and app based operations and marketing. It provides different types of rooms for every type of guest from the cheap ones to the luxurious ones and in many countries. Oyo disrupted the hotel industry by orchestrating a supply chain of small and many dispersed players which otherwise had limited access.
However, Oyo has not been without its problems such as expensive legal battles with hotels, issues about its own financial model, regulatory issues in many of the markets it operates. However, it continues to be an important actor in the international hospitality industry.
4. BOAT Lifestyle
Sector: Electronics and wearables
Market Cap: ~13636 Crores
GMP: Rs. 1420/-
Calidad started with BOAT which stands for boAt Lifestyle, as a home-grown Indian consumer electronics firm driving in audio solutions including earphones, headphones, speakers, and sound bars. Company is about to bring one of the Upcoming biggest IPO in the country. BOAT was started in 2016 by Aman Gupta and Sameer Mehta and now stands in the competition with the giant audio players in India. To a large extent, it aims at young consumers with a strong focus on the urban population by providing products that involve stylish, reliable and at the same time cheap. The described company stands out for fashionable clothes and effective promotion which is frequently collaborating with movie stars and sportsmen. BOAT also focuses on direct selling through its online partners like Amazon and Flipkart on which it has seen exponential growth in India where price sensitivity is high. Their portfolio comprises products such as wireless earphones, smartwatches and other wearable technologies for a mature and fast growing tech accessories market. Local competition has been stemmed by international brands but BOAT has remained in charge primarily because it understands the taste of Indians upcoming biggest ipo .
5. Bajaj Energy
Sector: Power & Energy
Market Cap: 3396 Crores
GMP: NA
This organization is one of the leading power generation companies in the private sector in India presently engaging in thermal power generation. It was started in 2008 as a joint venture of Bajaj group that has had a long history of production of sugar and other products. It also has a thermal power plant in Uttar Pradesh with a total generating capacity of more than 2430 MW. Bajaj Energy is very important in India in the provision of energy that helps the country to meet its increasing energy needs.. It is majorly dependent on coal as the fuel input, a situation that may seem to persist in the country for a long time in the future in regard to thermal power. Uttar Pradesh has several industries and agriculture and electricity supply from Bajaj Energy is stable hence aiding the development in the region. The firm is also continuing its diversification strategy by identifying business opportunities in renewable energy since power generation around the world is changing from conventional to clean technologies.
Conclusion
The future ipo in India IPOs that are expected to hit the Indian stock market in 2024 are perceived to be a very major bourgeoning as it provides the investor with a chance to invest in different sectors in their growth story.
Of course, the key guidelines before investing in any security, be it in an IPO or otherwise, is primarily to do your homework and look at some variables like the financial health of the company or sector, or the potential for the security, and conditions of the general market and so on. The investors should also look out for regulation and economical changes that would likely to affect the performances of such companies after going for the IPOs.
Also Read : top 20 large cap stocks in india
FAQ'S
What is IPO ?
An IPO is the process whereby an organization’s shares are floated for the first time in the market Tenbensky & Vakkuri (2017). They both chart a new phase in the life of the company: the process of floating the company in the public domain means that individual and institutional shareholders can invest in the company’s stocks
Who can apply for an IPO ?
Anyone, small investor, QIB or NII may apply for an IPO. There are categories in IPOs based on investor types, such as:
- Retail Individual Investors (RII)
- Qualified Institutional Buyer (QIB)
- Non Institutional Investors (NII)
What are the types of IPOs ?
There are two main types of IPOs:
- Fixed Price IPO: The company decides on a single price at which it offers the shares in the market.
- Book Building IPO: Price range is as offered and investors guess within this range, this implies that the price is flexible.
How can I apply for an IPO in India ?
You can apply for an IPO through:
- Internet ASBA (Application Supported by Blocked Amount) through net banking of the bank.
- UPI based applications with/ through brokers/trading platforms.
- Physical filled in forms with your broker or bank
What is the minimum investment required in an IPO ?
The minimum investment is associated with the lot size that is the minimum quantity of shares, which can be applied for. The total amount is basically the lot size when dealing with shares with a certain price per share. Normally, a retail investor’s application should not exceed ₹ 2 lakhs.
