IPOs, or Initial Public Offerings, are one of the most effective ways for private companies to raise capital. An IPO is the process through which a private company sells shares to retail investors for the very first time. After a company debuts its IPO in India, it is listed on at least one of the two major stock exchanges: the NSE (National Stock Exchange) and BSE (Bombay Stock Exchange).
Retail investors, too, are always on the lookout to invest in the IPOs of exciting, innovative companies with high growth potential. However, new IPO launches are frequent in a country like India, which is one of the fastest-growing major economies in the world. 2022 saw around 40 mainline Indian IPO launches despite all the global uncertainties and macroeconomic issues witnessed during the year. The year 2023 also saw several IPOs debut in the Indian stock market.
So, do you plan on investing in upcoming IPOs this year? If yes, have you thought about how you plan on tracking all the upcoming IPO launches? Continue reading this blog to learn how you can track IPOs in India.
Before looking at how you can track IPOs in India, let us understand what it actually means to track IPOs. When investors talk about tracking a specific IPO, they are not simply referring to keeping themselves up-to-date regarding IPO subscription dates. When you are tracking an IPO, you want to stay up-to-date with every update regarding the announcement of the draft red herring prospectus (DRHP), the price bands and issue size of the IPO, the opening and closing dates of the IPO, and the allotment of shares to investors.
At the same time, you also want to track the ongoing developments in the business of the company. It would also be in your best interest to thoroughly know about the business prospects, company plans, and company financials before you are on your feet, ready to apply for the IPO. If you are well-informed about the facets mentioned above, you will be able to evaluate factors like the valuation of the IPO.
Furthermore, when you are tracking an IPO, you are keeping yourself informed and paying attention to all the details. The process for filing an IPO is a rigorous one; to file its IPO, the company needs to get various approvals from SEBI (Securities and Exchange Board of India) and the stock exchanges. So, as a prudent investor, you would want to observe this process to see how the company is able to comply with the regulatory bodies. You want to see if the regulatory bodies raise any concerns regarding the company going public.
There are several ways through which you could track IPOs and noteworthy developments in the underlying company. The most widely used approaches to tracking IPOs are mentioned below.
● Exchange Websites:
One of the most effective ways to track IPOs is through the stock exchange websites, i.e., the NSE and BSE websites. The NSE and BSE have dedicated sections to help investors keep tabs on the upcoming IPOs and live IPOs. To track IPOs on the BSE website, you can visit the ‘Public Issues’ section by clicking the menu bar on the homepage. This will land you on the webpage containing details regarding the IPO, company announcements, DRHP, etc. Likewise, on the NSE website, you select the ‘Market Data’ tab to track the IPO. The information available on the stock exchanges comes directly from the company or official regulatory bodies.
● News Portals:
The next most referred sources to track IPOs are news portals, channels, and websites. There are several business news portals, channels, and websites reporting about IPOs and other related finance news. What’s more, digital platforms and business news websites are growing in popularity as they are easily accessible; it just takes a few clicks on your phone to view one. However, that said, it’s worth noting that the news provided by these news portals may or may not be a hundred percent true. That is, information disseminated by the news portal does not necessarily come from an official source, which is the company or official body like the stock exchange or SEBI. However, most news portals disclose if the source is an official body.
● Brokerage Websites/Apps:
Last but not least, brokers like Share India also help investors track IPOs. The brokers have information regarding the upcoming IPO subscription dates, issue size, and price brands on their websites and apps. You can view this information by selecting the IPO section on your stock broking app/website. The information on a broker’s website is also reliable since the information is only published after it has been disseminated or approved by an official body. So, broker websites have made it very easy to track IPOs.
To conclude, if IPO investing interests you, it is essential that you remain updated with the ongoing developments regarding the upcoming IPOs in India. Staying informed about the latest IPOs will help you make better investment decisions and avoid investing in companies that may not be suitable for you. So consider referring to the above-mentioned sources to stay informed about upcoming IPOs in India and make wise investment decisions; it will help you determine which are the best upcoming IPOs in India.
Frequently Asked Questions (FAQs)
To track IPOs in India, investors can refer to the IPO sections of stock exchange websites, business news websites and channels, and the IPO section of the Share India website.
As one of the fastest-growing major economies, India will see many upcoming IPOs for some good number of years. That said, it is not possible to label any IPO as “the best upcoming IPO” since investors may have different opinions and investing goals. So, it is your duty as an investor to study the company thoroughly before investing in it.
Investors should evaluate the company’s business model, financials and balance sheets, management, competitive landscape, valuations, and growth potential before investing in an IPO.
IPO tracking refers to the process of monitoring upcoming IPOs and analysing their potential performance when they get listed on the stock exchanges.
Tracking IPOs can help identify promising investment opportunities among new public issues. Analysing their financials, business models, valuations, etc., can assist in making informed investment decisions.
Details of upcoming IPOs, like launch date, price band, lot size, etc., are disclosed in the draft red herring prospectus (DRHP) filed by companies on SEBI and stock exchange websites.
You can track new IPO listings on the BSE and NSE websites and stock exchange apps such as Share India.
To check IPO listing performance, you can evaluate the listing price versus IPO issue price, premium/discount on a listing, the volume of shares traded, stock price movement since listing, analyst recommendations, and valuation metrics to evaluate performance.