Before moving to the upcoming IPO in India list you need to know what is its purpose. IPO stands for Initial Public Offerings. IPO is when a company is going to be public for first time by listing stocks on the stock exchange. The company first has to inform the SEBI( Securities Exchange Board of India) that they want to raise funds. After that RHP is shared with SEBI for final approval.
Before the listing, there is a bidding process in which investors are required to apply for the IPO. Investors has to apply for a minimum number of shares decided by the company which is called a lot. Bidding is open for two to three days in which the investors have to apply. After that shares are allotted to selected investors through a lottery system if the IPO is oversubscribed.
After all this process the shares get credited to their Demat account and afterward get listed on stock exchanges on the listing date on specified time.
List of Upcoming IPO in India 2021
|G R INFRA PROJECTS LIMITED IPO||7th July 2021||9th July 2021||Check soon|
|India Pesticides Limited||23 June 2021||25 June 2021||290 to 296|
Why do companies launch an IPO?
If you are wondering why do companies go public and launch an IPO. There could be various reasons for this. But the most obvious reasons are:
- To clear all the debt, because if the company raises the funds from the stock market then they don’t have to pay back the money to the investors without any interest. Investors can trade the shares with the buyers on stock exchange.
- The existing or we can say angel investors want to sell some part of their shares.
- For business expansion
- To make a strong presence of their Brand
Should You Apply for an IPO?
You should definitely apply for an IPO if you believe that the company is going to perform well in the long run and the company is going to sustain & grow more in future then yes.
Should you Apply for an IPO for listing gain purpose?
All game in the stock market is about demand and supply. If you find that IPO is oversubscribed then you should definitely apply for the listing gain purpose.