Everything there is to know about an IPO and the upcoming IPOs of 2021
2021 is a year of IPOs, with several companies launching their IPO and going public. It has provided multiple exciting opportunities for us investors to be a part of those companies we believe will be winners. The trend to invest in IPOs is incredibly huge as they have the potential to multiply your money quickly. If you want to jump onto the IPO bandwagon, too, this article will prove to be gold for you.
Understanding the Concept of an IPO
An Initial Public Offering (IPO) is the first time a company asks the general public to buy its stock and be partial owners through shareholding. It is an action that converts a private organization or company into a public listed company. Once a company’s IPO launches, it gets stock-listed on exchanges like BSE, NSE, etc. After that, the company’s shares are available for trading on stock exchanges like other listed companies.
IPO Investment Process
As a wise investor, you would want to invest in promising IPO shares that are reasonably priced. A typical IPO search criterion is a company reflecting good growth prospects. An excellent way to determine this is by thoroughly studying the Draft Red Herring Prospectus of each issuing company. It discloses information about the company’s complete business, its assets, revenues, liabilities, sales, weaknesses, strengths, etc. To understand an unbiased view of the company you should also go through the past press releases of the company, check up on any past news floating in financial dailies, etc.
Once you have selected the IPO you want to invest in, you should start its application process. The first mandatory step in investing in an IPO is to have a Demat Account. If you do not have a Demat Account, the time to register for one is now. A Demat Account is a mandatory requirement for any financial market investment. A well-known and registered broker that provides a full range of services is an ideal pick for you to open a Demat Account. These full-service brokers offer a broad range of value-based services such as investment consultancy, advisory services, etc.for minimum rates. It will give you much-needed guidance and investment assistance.
Once you have your Demat Account in place, you can update yourself with the upcoming IPOs and their details. A full-service broker will help you with such updates too. The dates for the IPO application window, the price band of the shares, the IPO’s share lot size, the share allotment date, the IPO listing date, and many other such crucial aspects about the IPO can be found on This portal will also help you in decision-making by sharing the strengths, risks, financials, and industry trends about the company along with their exclusive expert analyst opinion.
Upcoming IPOs of 2021
We have curated a list of the 11 recent upcoming IPOs of 2021. keep a close watch on them!
|Sr. no||Name of Company||Approx. Issue Size (Rs. in crores)||Offer for Sale||Approx. Dates||Details|
|1||Nykaa||525||Yes, 4.31 crore equity shares||Oct-Nov 2021||A young brand of the cosmetics and fashion industry is fast growing. It looks at spending the funds raised for setting up retail stores and debt repayment.|
|2||Paytm||12000||Yes, Rs. 4,600 crores||Nov 2021||The digital payments firm will launch the most awaited IPO to raise funds for strengthening the Paytm ecosystem.|
|3||Policybazaar||3750||Yes, Rs. 1900 crores||Nov 2021||The brand serves as the largest online platform for providing insurance and debt products and services. The proceeds from the issue will be used to increase product visibility and to focus on growth initiatives.|
|4||Mobikwik||1500||Yes, Rs. 400 crores||Nov 2021||Mobikwik is a digital payments start-up that has now achieved unicorn status. It aims to repay debt and focus on growth with the funds raised through the IPO.|
|5||Aarohan Financial||850||Yes, 2.7 crore equity shares||Oct-Nov 2021||In the east, Aarohan Financial is the largest NBFC. This brand provides micro-finance services in under-penetrated areas of the market for running small-scale businesses.|
|6||Star Health & Allied Insurance Company||Over 2000||Yes, 6.01 crore equity shares||Oct-Nov 2021||This company is backed by the Stock market maestro Rakesh Jhunjhunwala. The company is looking at utilizing the funds for expansion.|
|7||Ruchi Soya||4300||Yes||Oct-Nov 2021||Ruchi Soya is a part of Patanjali group led by Baba Ramdev|
|8||LIC||70000||–||Nov-Dec 2021||LIC is India’s largest IPO opening. The government is looking to offload 10% of its stake to the general public through the IPO.|
|9||Adani Wilmar||4500||No||Nov-Dec 2021||The FMCG brand is looking to raise funds for growth fuelled by strategic acquisitions.|
|10||Ixigo||750||Yes, 850 crores||Nov-Dec 2021||Ixigo is a digital services company that helps its customers to plan their travel by booking their stays, and air, train, and bus transport. Through this issue, they intend to repay their borrowings.|
|11||SJS Enterprises||No Fresh Issue||Yes, 800 Crores||Nov-Dec 2021||It is a purely offer for sale IPO where the major stakeholders are looking to dissolve their holding through the issue.|
Besides these, there are several other popular IPOs set to be launched by the end of 2021. Some of them are VLCC Health Care, Muthoot Microfinance, Policybazaar, GoAir, Paradeep Phosphates, PharmEasy, etc.
In the recent past, many investors have struck gold by investing in IPOs like Paras Defence, Zomato, EKI Energy Services, Tatva Chintan Pharma, G.R. Infraprojects, etc. These were available at penny rates and boomed past listing. However, you must know that not every IPO is as successful – many may tank too. Studying the issuing companies well and understanding every aspect of that IPO as the market trends, quantum of application, industry expert opinions, etc., are great ways to hunt for the winning IPOs. So, do your research well before blocking your funds in an IPO. Invest smartly!
Disclaimer – ICICI Securities Ltd. ( I-Sec). Registered office of I-Sec is at ICICI Securities Ltd. – ICICI Venture House, Appasaheb Marathe Marg, Prabhadevi, Mumbai – 400 025, India, Tel No : 022 – 6807 7100. Please note, IPO related services are not Exchange traded products and I-Sec is acting as a distributor to solicit these products. All disputes with respect to the distribution activity, would not have access to Exchange investor redressal forum or Arbitration mechanism. The contents herein above shall not be considered as an invitation or persuasion to trade or invest. I-Sec and affiliates accept no liabilities for any loss or damage of any kind arising out of any actions taken in reliance thereon. Investments in securities market are subject to market risks, read all the related documents carefully before investing. The contents herein mentioned are solely for informational and educational purpose.