In the past few years, IPOs have been one of the strong interests of investors. Data claims that the year collection for the new IPO has already surpassed 100 lakh crore. IPO is the process by which a private business goes public. Whenever a corporation goes public, it engages with investment banks to bring its share to the market, necessitating thorough due advertising, diligence, and regulatory compliance. However, selling shares is similar to selling the company’s equity to other investors.
Major investors like banks and hedge funds mostly reserve the initial offerings. In short, purchasing shares in the upcoming IPO takes time. Moreover, markets are mostly of two types: primary and secondary. Moreover, invest in upcoming IPOs to get the shares of a popular company at a lower rate.
Brief Understanding of Upcoming IPOs
IPOs that have already filed DRHP and are willing to enter the market in 2024 are upcoming IPOs. IPOs have experienced increased demand due to their offering better returns. You need to follow a few basic steps to apply for an IPO.
- Login to your stock trading app and tap the issue button in the IPO section.
- Enter the number of lots and the price you will apply for. Proceed further by initiating the payment.
- After the procedure, you will receive a confirmation mail and are done placing a bid.
Who can Invest in an IPO?
The SEBI has allowed a few groups of investors to bid for shares in the upcoming IPO process.
- Qualified institutional buyer
This segment includes public financial institutions, commercial banks, mutual fund firms, and foreign portfolio investors associated with the SEBI. However, it is said that the underwriter tries to sell the IPO shares at a higher profit before the IPO. Moreover, SEBI asks the institutional investor to sign the 90-day lock-up contract to assure minimum volatility through the IPO process.
- Anchor investors
Qualified institutional buyers who hold assets of more than 10 crore are claimed to be anchor investors. It is said that they can purchase up to 60% of the shares reserved by the QII.
- Retail investors
These investors can invest 2 lacs in each IPO lot. The retail quota demands a minimum allocation of 35%. However, SEBI has said that if the offer is oversubscribed, all the retail investors should be issued at least one lot of shares. A few other groups of investors include
- Non-institutional investor
- High-net worth individuals
How to Boost the Chances of IPO Allotment?
One of the best ways of increasing your chances of IPO allotment is by applying it with several demat accounts. It is said that multiple applications can increase the odds of IPO allotment. However, you can reduce the stress by bidding at the highest price.
Consider investing in the parent company by opting for the shareholder company. If the IPO is launched by a company whose parent company is already listed and playing well in the market, the chances of IPO allotment increase.
The Indian FMCG have been buzzing with the bullish momentum just after its recovery in 2020. However, a positive trend has been followed in the last 3 years. The sector has experienced significant resilience and growth in recent times.
The Nifty FMCG have gained 16% on the Tata consumers’ stock price this year. Even from the fundamental perspective, Tata consumers are moving upward. In its annual report, the company said it’s expanding its presence in the southern market. They are focused on creating distribution channels in semi-urban and rural markets.
However, the report also claims that Tata Consumer kept on gaining market share in the tea market in South India. In FY23, the company came up with 34 new products, and it led to a growth of 11%. The company made a profit of 8%.
How is the Tata Consumer Price Performing?
Tata’s consumer share price has increased by 8% in the past few months. The company held 877 as 52 weeks high and 686 as 52 weeks low. The report claims that the value of the company will increase with time. If you plan to invest in this share, consider browsing the information on the stock market app to get the latest Tata consumer share price information. This company has always shown a positive response in the market.
What Should be Considered When Investing in Tata Consumer Price?
- Research and Analysis: To invest in the Tata consumer, you must analyze the market position, financial statement, and growth prospects. You can also consider using the annual report and financial news on several stock market sites.
- Technical Analysis– focuses on considering several technical factors, including moving averages, charts, and other indicators, to identify the entry and exit point. This chart will help you know the history and make an informed decision. You can also consider following the trends, charts, and indicators to see how the company has performed in the last few calls to predict the future.
- Stay Informed about Upcoming IPOs– Consider staying updated about the IPOs and their impact on the FMCG factor. Market sentiment can have a huge influence on the share price. Staying updated with the latest news can help you decide whether to invest in that company.
- Online Brokerage Account- open an online brokerage account to purchase and sell Tata shares. Choosing a reputable platform can equip you with real-time data and useful tools.
If you want a safe investment option to grow your money, consider moving toward IPOs. With careful Analysis, you can shape your finances in your way. Moreover, the investor needs to make a good investment strategy that will help them boost their finances in the future.
Moreover, in most cases, the stock price increases with time. However, the price of the stock also depends on several factors. Be careful with your investments as they include financial risk. When investing in an IPO, choose a reputed company, as the chances of reputed companies to grow are comparatively high.