IPO Investing Guide 2023-2024: Latest IPOs and Investment Tips

After the period for IPO subscription is over, the company showcases the shares on the exchanges after two days. The shares are then traded from the listing freely in the market. The trading takes place during the market hours. There is an IPO bidding open date and close date to know to invest within the time limit. You must understand the lot size so that you can purchase the required number of shares. Get the IPO issue size (the monetary value of the entire IPO), the price per equity share, if the IPO is fixed price IPO or Book Building IPO, and other relevant details. At JSB Market Research, we provide you with the latest and upcoming IPOs in 2023-2024, and IPO new fund offers, so that you can check out the list and decide where to invest. We offer the best deal IPO information to everyone.

IPO Market, IPO Launch Reason, Who Can Invest :
Primary market and secondary market are the two types of market, and IPOs work in the former. The reason why a firm introduces an IPO is mainly to further its business by generating fresh funds or equity capital. As for investors, three main categories distinguish them:

1. QIB or Qualified Institutional Buyers :- Investors put their money in foreign institutional funds, mutual funds, banks, insurance companies, financial institutions, domestic financial institutions, and others.
2. NIIs or Non-Institutional Investors :- Here, the investment is in the retail sector and corporate but not in any particular institutions.
3.Retail Individual Investors :- The investors entrust in retail outlets and companies.

How to Invest in an IPO Online?

You need to open the necessary accounts to invest in an IPO online. Here are some suggestions for it:

• You will need one of the three mentioned accounts if you wish to go ahead with IPO investment. Then it is possible to trade them in the secondary market.
• A Demat account will help you with IPO trading online. The account stores the shares on the platform electronically.
• you may open a trading account basically to sell or buy shares. You can look for a financial place, which permits safe trading.
• To fund the transactions in the share market, you will also require a bank account. It can come in handy when making an application for an IPO. Almost all net-banking portals have the service to apply for IPOs through ASBA (Application Supported by Blocked Amount) facility.

Learn How to Apply for IPO 2023-2024 :
Here is more about what happens on applying for an IPO and the procedure for it:

• The IPO application process is unique as the aggregate invested amount is first blocked from the bank account. This is irrespective of whichever method you choose to apply for the IPOs 2023-2024.
• The deducted amount will credit to the investment account’s balance. But you cannot use it.
• After the finalization of the allotment, the amount will get debited from your account.
• It happens only if you receive the said shares. And the amount will be available for use after unblocking if you do not receive the IPO shares.

Tips for Investing in IPOs in India

Here are some of the tips on IPO investment in the country:

• As the IPOs are announced, we will share the current IPO calendar for every month/year as per the latest news. But you should do prior research going through the performance and historical data of the firm before deciding to invest
• Other factors to consider as management, financial figures, and fundamentals of the business as this will give you a fair overview of the private company.
• While there could be several IPOs at a time to invest in, you must compare the listed organizations to know which one you can trust according to your financial goals.
• The first step forward is to note the prospectus shared by the company launching the IPO. It shall contain details of the public offering and the firm’s future and business plans.

FAQs on IPO

What is a Lot Size and IPO Price Band?

The IPO lot size is different for each offer that the company in question fixes. The investor bids for this minimum number of shares. Price band means the range of price in which you can place the bid on shares. The floor price is the minimum price and the cap price is the maximum price. The IPO offer time extends by 3 days if the company changes the price band.

What is Issue Size, Book Building Issue, and Fixed Price Issue?

The IPO issue size is the offer’s total value and to calculate it you have to multiply the number of shares by the issue price per share. In a Book Building Issue, the price of the securities is over or equal to the floor price. But the fixed price issue as the name suggests, has a fixed price on the securities.

What is IPO Cut-off Price?

After the closing of the IPO subscription, the merchant bankers and company decide the offer price. And that is the cut-off price.

Can You Revise the Bid Before the IPO Application?

Yes, you can revise the price in the bid or quantity if you are a retail investor after applying for the IPO. But you need to do so before the closing date of the offer.

Who Are Anchor Investors?

As for anchor investors, these are institutional investors. The company allots shares to them before the opening of the IPO subscription. But anchor investors have to adhere to the lock-in period. The allotment is possibly into pension funds, mutual funds, insurance companies, etc.