In the recent months, the Indian stock market has been on a bull run, leading to increased investors’ interest in initial public offerings (IPOs). In the past few months, several good companies have launched their IPOs, helping subscribers make decent listing gains.
With many companies planning to go public in the coming months, this trend is likely to continue. Below are some of the IPOs scheduled to go public on National Stock Exchange (NSE) and Bombay Stock Exchange (BSE) in the coming week:
Rishabh Instruments IPO: This is a mainboard IPO by a company that provides energy efficiency solutions. Through the IPO, 75 crore fresh shares will be issued while there will be an offer for sale (OFS) of 9.43 million shares. The price band for the IPO is Rs. 418-441 per share. The IPO is likely to be available for subscription on August 30 and close on September 1. The tentative listing date is September 11.
Mono Pharmacare IPO: This is an SME IPO by a company that manufactures and markets generic drugs. The IPO includes a fresh issue of 53 lakh shares with no offer for sale. The price band for this issue is Rs. 26-28 per share. The IPO opening date for subscription is as on August 28 and closing date is as on August 30. The tentative listing date is September 7.
CPS Shapers IPO: This is an SME IPO by a company that manufactures and exports textile machinery. The offering comprises a fresh issue of 11.10 crore shares with no OFS component. The price band of this fresh issue is Rs. 100-105 per share. The IPO opening date is as on August 29 and closing date is as on August 31. The tentative listing date is September 9.
Basilic Fly Studio IPO: This is an SME IPO by a firm offering drone-based solutions for the agricultural sector. The IPO will include a fresh issue of 1.25 crore shares with no component of the offer for sale. The price band has been announced at Rs. 110-115 per share. The IPO is likely to be available for subscription on September 2 and close on September 4. The tentative listing date is September 13.
It is vital to note that IPOs can be highly risky as post listing these shares may witness wild swings on both sides. However, if you invest in a good company with strong fundamentals, you can potentially earn good returns in the long term.
Following are a few tips for investing in IPOs:
• Before investing in an IPO, one must do some research and understand the company. This includes reading the IPO prospectus, understanding the company's business model, and analyzing its financial statements.
• Diversify your investment across a suite of IPOs to reduce your risk.
• IPOs can be volatile, so it is crucial to stay patient and not panic sell if the stock price goes down in the short term.