The financial year 2024 witnessed significant increase in the number of IPOs (Initial Public offerings) in the primary market compared to FY23.
The strong demand for shares was fueled by the rise in domestic investors in an overall bullish market. Most of the IPOs in the fiscal year 2024 had substantial subscriptions and positive market movements during their listing days
Factors to check before applying IPO
The issuing company’s financials: Before investing in an IPO, know the issuing company’s financials as much as possible. Analyze how the company has performed in the last few years, how much profit it has made, how much revenue it has generated.
Promoters in the company: Companies with solid and experienced promoters usually have strong growth potential. The shares of such companies can appreciate considerably over time.
The valuation of the IPO : If a company’s IPO seems overvalued, avoiding investing in it is better. However, if an IPO looks fairly valued, you can bid for it to get high returns.
Prevailing market conditions : If the markets are bullish, the IPOs will likely open in green. However, even the best IPOs tend to open in red or offer comprised returns during the bearish market.
3 IPO subscription started this week have seen great demand from all type of investors.
Indegene IPO : May 6th to May 8th : It is a digital services for Life Science companies with virtual monopoly .Strong Fundamentals with inorganic growth. The Indegene IPO is subscribed 70.30 times
TBO Tek IPO : May 8th to May 10th : It is a travel distribution platform that offers travel inventory
Strong Fundamentals with good profit growth. The TBO Tek IPO is subscribed 86.69 times
Aadhar Housing Finance IPO : May 8th to May 10th : This is a housing finance company targeting the lower income segment. Strong fundamentals with profit growth .The Aadhar Housing Finance IPO is subscribed 26.76 times.
IPO This Week
Go Digit IPO : IT is an insurance provider offering motor insurance, health insurance, travel insurance, property insurance, marine insurance, liability insurance and other insurance products, which customers can customize to meet their needs . It opens for subscription on May 15 and closes on May 17. Go Digit IPO price band is set at ₹258 to ₹272 per share.
Go Digit General Insurance Limited’s revenue increased by 113.35% and profit after tax (PAT) rose by 112.01% between the financial year ending with March 31, 2023 and March 31, 2022.
Disclaimer: The investment advice provided by the author is for informational purposes only. We take no responsibility for any losses or damages resulting from the use of this information.
