The Indian stock market is set to witness several new IPOs in 2024, offering investors opportunities to invest in high-growth companies. Whether you’re a seasoned investor or new to IPO trading in India, understanding the IPO landscape can be key to making profitable decisions.
What is an IPO?
An Initial Public Offering (IPO) is the process by which a private company offers its shares to the public for the first time. This allows companies to raise capital and investors to become part-owners.
Why Should You Watch for IPOs in 2024?
Upcoming IPOs in India provide a unique chance to invest early in promising companies, which can yield significant returns. However, they come with risks, so it’s important to analyse the company’s financials, business model, and market potential before investing.
New Upcoming IPOs in India 2024
Here are a few IPOs to watch out for in the coming year:
- Bajaj Housing Finance IPO
Bajaj Housing Finance, a subsidiary of Bajaj Finance, is expected to go public in September 2024. It has shown consistent growth, primarily driven by its focus on home loans and property loans. Expected to raise ₹6,560 crores, the IPO is set to open for subscription on September 9 with the price band set at ₹66-70 per share. For FY2024, Bajaj Housing Finance reported a 26% growth in profit after tax and a robust increase in its asset under management (AUM). Bajaj Finance’s consistent performance indicates strong demand for the IPO. - Kross IPO
Kross is a Jamshedpur-based manufacturer of industrial components, especially truck axles. The IPO valuation is expected to be ₹500 crores with subscriptions opening September 9. The price band is set at ₹228-240 per share, while the minimum lot size is 62 shares. Kross plans to expand its manufacturing capacity and improve research and development through IPO proceeds. Recent financial performance shows revenue increase by 27% and a 45% increase in profit after tax. - Swiggy IPO
Swiggy is expecting to raise between $1-1.2 billion for its upcoming IPO later this year. Swiggy is targeting a valuation of $15 billion while focusing on increasing its average order value, advertising revenues, and reducing costs to improve profitability ahead of the IPO. The company reported an operating revenue of ₹11,247 crore in FY24, a 36% increase from the previous year, but ended with a loss of ₹2,350 crore, a 44% reduction in its net loss in the previous year. - Hyundai Motor India IPO
Hyundai Motor India is preparing for an IPO, which could become the largest in India’s history. The company, a subsidiary of Korea’s Hyundai Group, has been a dominant player in the Indian automotive market since 1996, offering a range of vehicles from sedans to electric cars. In FY24, Hyundai held a 15% share of the Indian car market, trailing only Maruti Suzuki. The automaker has significantly expanded its sales and service network, operating over 1,300 sales outlets and 1,500 service centres across India. Hyundai is the third-largest global OEM and the top exporter of passenger vehicles from India since 2005. - Hero FinCorp IPO
Hero FinCorp, the financial services arm of Hero MotoCorp, is preparing for a 2024 IPO worth ₹3,668 crore. Hero FinCorp offers a variety of financial products, including loans, and has grown its portfolio in recent years. The company will enhance its capital by leveraging the proceeds from the new issuance to address its future financial needs related to lending activities. As part of the esteemed “Hero” brand, Hero FinCorp gains from the longstanding legacy, robust performance history, and strong reputation of its parent company, Hero MotoCorp Ltd. - Waaree Energies IPO
Waaree Energies’ IPO will feature a fresh share issuance of ₹3,000 crore and an offer for sale of 32 lakh shares, with Waaree Sustainable Finance Pvt. offloading 27 lakh shares, Chandurkar Investments Pvt. selling 4.5 lakh shares, and Samir Surendra Shah divesting 50,000 shares. The company plans to use approximately Rs 2,500 crore of the IPO proceeds to fund a new 6-gigawatt facility in Odisha for manufacturing ingot wafers, solar cells, and modules, with investments spread over the current and next financial years.
How to Get Started with IPO Trading for Beginners
- Understand the Process: For beginners, it’s essential to know how to participate in an IPO. You need a Demat account, a trading account, and the knowledge of applying through ASBA (Application Supported by Blocked Amount) in your bank account.
- Research New IPO Stocks: Before investing, research the company’s history, future growth potential, and market conditions. Read the company’s red herring prospectus to understand the risks.
- Use Brokerage Platforms: Several platforms allow seamless IPO applications, making it easier for beginners to get started. With Signalz, you can access comprehensive information and tools to track upcoming IPOs, manage your applications, and stay updated on market trends.
Key Factors to Consider for Upcoming IPOs
- Sector Trends: Some sectors, like tech and healthcare, have been booming in recent years. Keep an eye on IPOs within these sectors, as they may present exciting opportunities.
- Company Fundamentals: Look into revenue growth, profitability, and market share. Strong fundamentals often translate into better post-listing performance.
- Market Conditions: Favourable market conditions can lead to higher IPO demand. Analyse market trends before making decisions.
Best Strategies for IPO Trading in India
- Invest Early: Getting in on a solid IPO early can be lucrative, but only if you’ve done your research.
- Diversify Your Portfolio: Don’t put all your money into one IPO. Spread out your investments across sectors to minimize risk.
- Monitor Post-Listing Performance: Some IPOs may spike in price on the day of listing, but it’s important to keep an eye on the company’s long-term performance.
Conclusion
With many exciting IPOs on the horizon in 2024, it’s a great time to explore new opportunities in the stock market. By keeping up with the latest trends and following smart investment strategies, you can capitalize on new upcoming IPOs and grow your portfolio. Start exploring IPO trading in India with Signalz to get expert insights and stay ahead of the market trends.