Upcoming IPOs in 2024 in India – What to Expect

2024 is shaping up to be a blockbuster year for the Indian stock market, with highly anticipated IPOs across various sectors such as finance, technology, real estate, manufacturing, and green energy. These initial public offerings are expected to generate significant investor interest and could offer lucrative investment opportunities. In this post, we’ll look at some of the biggest upcoming IPOs in India for 2024, including details like expected issue sizes, grey market premiums (GMP), and essential insights that investors should know.

Bajaj Housing Finance IPO – September 2024

The Bajaj Housing Finance IPO opened for subscription on September 9, 2024, and closed on September 11, 2024. The company, part of the Bajaj Group, aims to raise ₹6,560 crore through a combination of fresh issues and offers for sale (OFS). The price band for the IPO was set between ₹66 to ₹70 per share, making it accessible for both retail and institutional investors. One of the exciting aspects of this IPO is the Grey Market Premium (GMP), which currently stands at ₹55. This suggests robust demand in the grey market, indicating a potentially strong listing. The Bajaj Housing Finance IPO's listing date is September 16, 2024. Given the company's strong track record in the housing finance sector and its growth potential, this IPO has garnered considerable interest.

Hyundai and LG IPOs – 2024-2025

Hyundai Motors is set to launch one of India's largest IPOs, aiming to raise ₹25,000 crore between late 2024 and early 2025. Meanwhile, LG Electronics IPO is gearing up as well, targeting a valuation of ₹10,000 crore. Both highly anticipated IPOs are expected to attract significant interest from institutional and retail investors due to their prominent positions in India's expanding automotive and electronics sectors. These upcoming IPOs in 2024 have the potential to be among the largest listings, making them highly attractive for investors looking for long-term growth in major industries like electric vehicles and consumer electronics.

Other Notable IPOs in Late 2024

Other companies anticipated to go public in late 2024 include JSW Cements, Niva Bupa Health Insurance, and Hero FinCorp. JSW Cements, a key part of the JSW Group, is aiming to raise approximately ₹2,000 crore through its IPO. Meanwhile, Niva Bupa Health Insurance and Hero FinCorp are preparing for their respective IPOs, focusing on the health insurance and financial services sectors, both expected to generate strong interest from investors looking to capitalize on these high-growth industries.

Hero FinCorp IPO – Early 2025

Hero FinCorp, a prominent NBFC in India, is expected to launch its IPO in early 2025. The company aims to raise ₹4,000 crore through a combination of fresh issue and offer for sale. The funds will be utilized to strengthen its capital base, reduce debt, and expand its lending portfolio, particularly in the MSME and retail sectors.

Conclusion

2024 promises to be an exciting year for IPO investors. From financial giants like Bajaj Housing Finance to global powerhouses like Hyundai and LG, investors have a lot to look forward to. Keep an eye on market conditions and GMPs to make informed decisions and maximize returns.

FAQ: Upcoming IPOs in 2024

Investors often have questions regarding upcoming IPOs, from the details of the offerings to the best ways to invest. Here are some frequently asked questions about the IPOs expected in 2024 and 2025.

How to apply for IPOs in 2024?

Investors can apply for IPOs through the ASBA (Application Supported by Blocked Amount) mechanism, which is available in their bank or through UPI-enabled online platforms like Zerodha, Groww, and others. To apply, investors need to have a Demat account linked to their bank account. They can log in to their trading platform, navigate to the IPO section, and place their bids by selecting the number of lots they wish to purchase. Once the bidding process is complete, the application amount is blocked in the bank account until the IPO allotment is finalized.

What is the minimum investment required for IPOs in 2024?

The minimum investment required for IPOs depends on the price band and the lot size specified for each IPO. Typically, retail investors are required to bid for a minimum of one lot, which usually consists of 10-15 shares. For example, if the price band of an IPO is set between ₹300-₹320 and one lot consists of 15 shares, the minimum investment required would be ₹4,500-₹4,800. Investors should check the specific details of each IPO before applying.

How to check IPO allotment status?

After the IPO bidding process is complete, investors can check the allotment status on the website of the registrar handling the IPO, such as Link Intime or KFin Technologies. They can also visit the NSE or BSE websites and use their PAN number or application ID to check the allotment status. The allotment status is usually updated a few days after the IPO subscription closes, and investors will be notified of the shares allocated to them and any refunds due.

What are Grey Market Premiums (GMP) and how do they affect IPO investments?

Grey Market Premiums (GMP) refer to the price at which shares are traded in the unofficial market before they are listed on the stock exchange. A high GMP indicates strong investor interest and potential listing gains, while a low or negative GMP suggests limited demand. Although GMP can provide an indication of market sentiment, it is not an official metric and should be used cautiously when making investment decisions. Investors are advised to consider a company’s fundamentals and the overall market environment alongside GMP.

How to choose the right IPO to invest in?

Choosing the right IPO to invest in requires a thorough analysis of the company's business model, financial performance, growth prospects, and market position. Investors should read the IPO prospectus, assess the company's valuation compared to its peers, and consider the broader industry trends. It's also important to look at the company's management team, the purpose of the IPO, and how the funds will be utilized. Consulting with financial advisors and staying updated with market news can help in making informed investment decisions.