An Initial Public Offering (IPO) is a term you have often heard of in the stock market world. It is simply the process by which private businesses offer shares to the general public to raise equity funding from retail investors. A privately held company becomes a public company through the IPO process. This technique also offers savvy investors the chance to generate a sizable return on their investment.
A company taking part in an IPO is taking a big step because it opens the possibility of significant capital raising and increases its capacity for development and growth. Also, the enhanced transparency and trustworthiness of the share listing may help it get better terms when looking for borrowed money. Individual investors have three options for applying for pre-IPO shares: online, offline, or through a stockbroker. For such an application, a Demat account is required. The underwriter distributes the shares following the bid amount.
An IPO investment may be a wise choice. If you initially buy a stock with significant upside potential, you might benefit later as the price rises over time. They offer tremendous earnings at a far lesser risk than other options, making them a great method to invest your money. If the firm does well, you can buy relatively few stocks and considerably increase your profits.
Market analysts anticipate a significant increase in IPOs in 2023 starting in March. According to the data, SEBI has approved more than 55 enterprises. They want to launch their initial public offering in March 2023 and later. The months of January and February 2023 had no mainboard IPOs. Following the budget, the market has gained some certainty, and until the macroeconomic situation improves, investors can anticipate IPOs for listing gains and long-term investing.
Upcoming IPOs in March 2023
The following are some of the upcoming IPO that will be available in March 2023:
The parent company of PharmEasy, the top digital healthcare platform in India, has registered with market regulator SEBI for its IPO in November 2021. The offering size for the PharmEasy IPO would be Rs. 6,250 crores. There will be a brand-new share issuance. By this IPO, neither a shareholder nor an investor will reduce their ownership stake in the business.
The well-known low-cost carrier Go Airlines wants to raise Rs. 3,600 billion through its first public offering. Each share will have a face value of 10 rupees. For its first public offering, Go Airlines has submitted paperwork to SEBI.
MobiKwik, a prominent digital payment provider, has filed to go public in July 2021. A new equity share issue worth Rs. 1,500 crores and a Rs. 400 crore offer for sale by chosen promoters and shareholders would make up the MobiKwik IPO. The platform serves over 120 million clients and 3 million retailers nationwide.
OYO Rooms is a well-known digital platform that provides hospitality services. It was established in 2013. The company has submitted a DRHP for an initial public offering (IPO) of Rs. 8,430 crores, consisting of Rs. 7,000 crores in newly issued shares and a Rs. 1,430 crores offer for sale by its current investors and shareholders.
Droom, an online automobile marketplace, intends to go public in 2023. It has submitted paperwork to SEBI for an offering of Rs. 3,000 crores and will include an OFS of roughly Rs. 1,000 crores and a new share offering of Rs. 2,000 crores. The funds will be used for various costs, such as general company costs, inorganic and organic growth efforts, and more.
One of the key private participants in thermal energy production is Bajaj Energy. It has a 24,330-megawatt gross capacity. In this IPO, the company hopes to raise Rs. 5,450 crores. The initial public offering of Bajaj Energy will include a fresh issue of shares worth Rs. 5,150 crores and an offer to sell shares worth Rs. 300 each.
One of the leading e-commerce sites in India is Snapdeal. With its IPO, this e-commerce behemoth will issue new shares worth Rs. 1,250 crores and a share sale offer from some of its current shareholders and investors.
Another significant Indian tech start-up, Ola, will conduct its initial public offering in 2023. Many reports indicate that the Ola IPO would have an issue size of Rs. 15,000 crores, albeit this has yet to be confirmed. It just finished its pre-IPO funding round.
The investors in the latest IPO should submit an online IPO application through a bank or stockbroker. Investors in the upcoming IPO can submit an application online using UPI or through a bank using ASBA. Media attention is usually given to initial public offerings, some of which are done intentionally by the firm going public.
In general, IPOs are well-liked by investors due to their propensity to induce erratic price changes on the day of the IPO and shortly after that. Large losses, as well as significant gains, might occasionally result from this. Investors should evaluate each IPO in light of their financial situation, risk tolerance, and the prospectus of the company going public.