Saturday, 16 December 2023

Current Trends in IPO market & Key step for IPO Subscription in INDIA

stock market today , stock market news

In year 2023 has seen a steady flow of IPOs, with over 48 companies raising more than Rs 45,000 crore as of November 2023. However, compared to the record-breaking year of 2021, the market has seen a slight slowdown. Sector Focus  Diversification is key, with IPOs across various sectors like consumer durable, healthcare, technology, and infrastructure. SME Focus the SME segment remains active, offering smaller companies opportunities to raise capital and list on the stock exchange.Investor Sentiment: Investor sentiment remains cautious due to global market uncertainties, but there's still interest in promising companies with strong fundamentals.

Challenges and Opportunities:

   Market Volatility: Global economic headwinds and rising interest rates can lead to market volatility, impacting IPO performance.

   Valuation Concerns: Some argue that some IPOs are overvalued, leading to potential losses for investors.

   Information Asymmetry: Limited information about some IPO companies can make it difficult for investors to assess their true potential.

   High Growth Potential: India's economy is projected to grow steadily in the coming years, creating opportunities for successful IPOs in various sectors.

   Large Investor Base: India has a large and growing pool of investors, providing ample potential for IPO subscriptions.

    Government Support: The Indian government is actively promoting IPOs and capital market development, creating a conducive environment for growth. 


If you want to subscribe for   IPO .

1. Account Opening : Ensure you have a valid DEMAT account  and trading account with a SEBI -registered broker

 KYC Compliance: Complete your KYC (Know Your Customer) verification with your broker/bank if not already done, now day鈥檚 it鈥檚 very easy to open demat account via digital mode

3. Choose Your Broker/Bank: If you haven't already, select a broker/bank with a good reputation and user-friendly platform for IPO subscription.

4. Research & Analysis: Kindly do analysis your investment IPO target by having fundamental analysis of balance sheet mentioned in RHD , kindly study the risk factor related to Target IPO company   

As IPO window opens :

1. Bid Submission: Once the IPO opens, log in to your broker/bank platform and locate the IPO you wish to subscribe for

2. Enter Bid Details: Specify the number of lot (Generally amount range from 14500-15500)  you want to subscribe for and the bid price generally you have place at cut-off

3. Payment Blocking: A portion of your funds will be blocked in your account as ASBA  to cover the potential subscription amount.

4. Confirmation: Review and confirm your bid details before submitting it.

When IPO window closes :

1. Allocation & Allotment: The IPO closes after the subscription window ends, and shares are allotted to investors based on a proportionate basis or through a book-building process.

2. Fund Settlement: If your bid is successful, the blocked funds will be debited, and the allotted shares will be credited to your Demat account.

3. Listing & Trading: Once the IPO lists on the stock exchange, you can trade your shares like any other listed security.

Some Important point

   ASBA (Application Supported by Blocked Amount): This is the preferred method for IPO subscription in India. It blocks the required funds in your account without affecting your liquidity, and the funds are only debited if your bid is successful.

   Minimum Bid Size: There might be a minimum and maximum number of shares you can subscribe to for an IPO.

   Lock-up Period: Some investors might have lock-up periods where they cannot sell their shares for a certain period after the IPO.

   Subscription Costs: Some brokers/banks might charge fees for IPO subscription services.

   Online: Most brokers/banks offer convenient online IPO subscription platforms. It's faster, easier, and more transparent.

hthttps://markettalkshop.blogspot.com/



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