A List of Details of the 2024 IPOs for India's Main Board and SME Listing.

India’s IPO market is hot for 2024, and easily levers as an investment product for a retail and institutional investor. The IPO market consists of main board IPOs and SMEs catering to a whole range of tastes and capital requirements. This article takes you through some of the salient features of the IPO market in India for 2024, its upcoming listings, recent trends, and how to participate effectively.

What is an IPO?

IPO, which stands for Initial Public Offering, is the process through which a privately owned company issues its shares to the public for the first time. This gives companies access to their capital mainly for growth. This way, investors can gain a share of the company by purchasing stocks to benefit when the company reaches success.

Indian IPO Market

The Indian IPO market can broadly be classified into two sectors.

Main Board IPOs: Large public issues floated by listed companies, which get maximum trading on Bombay Stock Exchange (BSE) or National Stock Exchange (NSE).
SME IPOs: Issues floated by small emerging companies getting themselves listed on the SME platforms of BSE or NSE to attract risk-loving investors.

Major Trends in Indian IPO Market in 2024:

It has been one of the strongest starts to the year for the Indian IPO market, powerfully underpinned by solid economic recovery and continuing investor appetite. Here are some key trends:

Increase in Investor Participation: Enhanced retail investor participation in IPOs driven by major returns in Main Board as well as SME segments.
Sectorial Diversification: The exchange has several sectors like technology and finance sectors. Manufacturing and health care are also sectors, which provide the investor with more than enough variety to diversify the portfolio.
Growing SME IPOs: The SME sector is exploding as more companies are looking to be funded through a public offering.

Here's some of the major upcoming IPOs in 2024 from Main Board and SME segment:.

1. Hyundai Motor India Limited (Main Board)
Issue Size: ₹7,000 crore
Open Date: October 2024
Key Highlight: One of the most prominent automobile players seeking listing in the Indian IPO market to raise significant capital for expansion in the electric vehicle space.

2. Premier Energies (Main Board)
Issue Size: ₹2,830.40 crore
Open Date: August 2024
Takeaways
Premier Energies is the leading company in renewable energy, eyeing these eyeballs of environmental conscience investors.

3. Neopolitan Pizza and Foods Limited IPO (SME)
Issue Size: ₹12 crores
Open Date: 30th September, 2024
Takeaway: The IPO comes from a fast-growing food chain, and the prospect in the retail and food industry is extremely exciting.

4. Subam Papers Limited IPO (SME)
Issue Size: ₹93.70 crores
Open Date: 30th September, 2024
Key Takeaway: Subam Papers is now tapping into the market to raise funds to extend its paper manufacturing business and hence, will be an attractive proposition for all industrial stock investors.

5. Arkade Developers Ltd IPO (Main Board)
Issue Size: ₹410 Cr
Open Date: Sep 16, 2024

Key Takeaway: That’s all on Arkade Developers a realty major which proposes to raise funds to fund increased infrastructures, especially across Mumbai. How to Invest in an IPO in India
There is investment in the following steps in an IPO:
Open Demat and Trading Account Keep the shares in an electronic form in a demat account, and all buying/selling takes place in a trading account. See that you open a good or a reputed broker to ensure hassle-free trading.

Scan IPO: Keep track of the announcements related to those IPOs, subscription dates, issue size, and price bands through sites like Chittorgarh or even from NSE/BSE sites.

Read the Prospectus: Companies launching an IPO are sure to make a prospectus that contains all of the pertinent information, including financial details, risks, and growth strategies of these companies. That’s something you would want to read before making a decision.

Apply through ASBA: ASBA an application supported by blocked amount has been the way of application in an IPO. Any debit of money takes place only when the shares are allotted.
Shares allotted All the shares are allotted based on demand and availability. It is a lottery-based allotment in case of over-subscription.

Listing Day: This is the date when the shares are listed so you can use them to do trades on the exchange. So, you have to keep a watch on market trend to find out when to sell and hold the shares.

IPO Allotment and Listing Process

In that IPO allotment is one among the vital steps where shares are distributed to the applicants. According to demand, you may get some less number of shares compared to what you have requested. Let’s know it more in detail:

Retail Investor Quota: A percentage of the issued IPO is for retail investors (usually 35% of total), so everybody gets share.
Oversubscription: If the IPO is oversubscribed, which happens in most cases of popular issues, the shares are issued by a lottery system.
Once the allotment is through, the company’s shares will be listed on the exchange, which mostly occurs within seven working days. The trading can commence, and this will be the time when the share price becomes much volatile based on the demand.

Factors to be Wary of before one Invests into an IPO
IPOs generate good returns. At the same time, however, they tend to also be risk-prone. Here are some factors to consider before investing in an IPO:

Financial Health of the Company:

Analyze the financial performance of the company. That means analyzing revenue growth, profitability, and the debt level. A profitable company with proper growth has a higher chance of delivering good returns.

Market Conditions: In general, it is upon market conditions that precisely act as the success key of an IPO. With a trend of upwardly tending marketplace, newly issued shares may go well. It is quite understandable that in downward trends, an IPO hits a roadblock.

Valuation:

Compare the price of the IPO with the earnings as well as prospects of the company. Overvalued IPOs could result in losses once it lists, whereas one’s prospects, if reasonably priced, may be realized at decent entry points for long term gains.

Lock-in Periods:

Check for lock-in periods of promoters and early investors whose exit will decide the stock price.

Which one is the best for you? SME vs. Main Board IPOs

Both SME and Main Board IPOs have different characteristics, and which one to choose depends upon your investment strategy.

What is more, those that come from the Main Board tend to be big and established companies whose market capitalizations are of a much greater value. Also, they are less of a risk and more stable, which makes them ideal for conservative investors.

SME IPOs: These involve a very high risk, but promise an enhanced growth prospect. The SME companies are typically small-sized and unstable but promise a significant return if the business grows accordingly. They are mainly suited to aggressive investors who are ready for taking on additional risks.

Conclusion

India has so much to present from the IPO market for investors in 2024-from established Main Board companies to rapidly growing SMEs. It is truly a lot to choose from, as your decision would depend on how you evaluate every IPO you see about company performance and regarding present market conditions, risk, and the tolerance level. Whether an old-timer or a newcomer, an IPO interestingly permits participation in the growth of the stock market.

Disclaimer:

All above recommendations are of the market analysts. Neither the author, nor the brokerage firm, nor Stockstoday.in will be responsible for any loss arising out of any such decision taken based upon this information. All users are cautioned to take their own expert advice prior to making any investment decision.