Today’s New IPO Listing – How to Choose Best IPO for Investment?

What is IPO Listing means?

In this article, we are going to cover Today’s New IPO Listing. But before getting into the list let’s discuss in brief what is IPO and what factors we should consider before investing in an IPO.

IPO is a lengthy process by which companies usually hope to raise fresh capital. A private company goes public via an IPO. Once the share allotment is complete, the issuing company has to fulfill the required formalities within adays12 days before its shares hit the stock exchange. The last step in this process refers to IPO Listing when finally shares hit the exchanges and are available for trading thereafter.

Usually, traders and smart investor park their funds during IPO launches to book listing gains. Listing gains can be booked via the purchase and sale of shares in a public issue. Listing gains can be made if the opening/listing price is higher than the allotment/cutoff price.

How to Choose the Best IPO for Investment?

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When the equity market is flooded with IPO, investors get confused due to varied choices. It can be tricky to invest which is the best to buy from a pool of IPO. Here are some evaluations which one must consider to identify a good IPO for investment:

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Oversubscribed IPO

Business Strength of New IPO Listing

One must thoroughly review the company’s business model, historical performance, and management hierarchy.
When should we evaluate the IPO from the red herring prospectus? It contains most of the information which you as an investor need to evaluate the company’s business and performance. Invest only if you think the company has got strong market presence with the business model well-being well being and the potential to grow in the future.

Promoter Intentions

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If a company stunning its top management would like to stick by the company while it’s growing and profitable. Before investing in an IPO, always check how much promoter group interest is getting diluted. As per law, promoters should hold at least 20% after an IPO. In case promoters are diluting their stake significantly that means insiders do not have faith in the company. It’s best to stay away from such companies IPO.

Use of Capital

IPO launch by companies means raising capital from the public, Before going public, the issuer has to disclose the usage of this capital in the red herring prospectus. One should opt for IPOs wherein IPO is launched to raise capital for deployment of new technology, setting up a new production unit, entering into a different sector,s or acquiring new business instead of settling old claims, repaying old debts, or making a working capital-related investment.

Also Read Buy/Sell IPO Application in Grey-Market – What is IPO Grey-Market & Gray-Market Premium?

Pricing

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One should not invest in companies name instead look for the price-to-sales and price-to-earnings ratio for evaluating the worth of the shares. These ratios can easily be derived by diving the price of a company’s stock by its sales per share and net income per share respectively. A thorough competitor analysis will help you in choosing the right IPO for investment.

Growth Prospects

Strong track records do not guarantee strong performance in the future. After reaching a peak companies’ revenue get stagnant at a plateau instead one should opt for a company that has the strongest growth potential. To analyze this factor, one can check how much expenditure the company is occurring on new technology and innovation and whether they are exploiting this strength by minimizing its weakness.

Today’s New IPO Listing Name

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Recently Listed

Here is the list of IPOs which got listed recently with their listing gains if any:

IPO NAMEOFFER PRICE/RANGEOPENING DATECLOSING DATEISSUE SIZE
Mega Flex Plastics Ltd.4006-09-202209-09-202211.40 Cr
Infurnia Holdings Ltd.1006-09-202209-09-202238.20 Cr
Sabar Flex India Ltd.1108-09-202213-09-20228.95 Cr
Ishan International Ltd.8009-09-202214-09-202218.24 Cr

Running and Upcoming:

IPO NAMEISSUE TYPEOFFER PRICE/RANGEOPENING DATECLOSING DATEISSUE SIZE
Tapi Fruit Processing Ltd.IPO4812-09-202214-09-20225.21 Cr
Harsha Engineers International Ltd.OFS314-33014-09-202216-09-2022755.00 Cr
Annapurna Swadisht Ltd.IPO68-7015-09-202219-09-202230.25 Cr
Varanium Cloud Ltd.IPO12216-09-202220-09-202245.14 Cr

Hope we manage to meet your expectations while bringing the latest content.

Also Read  How to Apply for IPO and FPO in SBI (ASBA)? | Eligibility | Benefits | Withdrawal Conditions

FAQs

Is IPO first come first serve?

No, IPO shares do not get allotted on first cum first basis instead depends on who has placed a bid above the cut-off price.

Can we sell IPO shares immediately?

Yes, you can once shares get listed on the stock exchange.

Is buying IPO a good idea?

It depends on which company’s IPO you plan to invest in. Not all IPOs are good bets always evaluate the above factors before investing in any IPO.

How many shares can I buy in IPO?

As per SEBI guidelines, a person cannot bid less than the minimum lot size.

Source – https://economictimes.indiatimes.com/

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