As the new year begins, many companies have geared up to launch their Initial Public Offerings (IPOs). An IPO marks the beginning of a private company’s journey to go public by offering its shares. Investing in an IPO allows individuals to become stakeholders in a newly listed company. Each of these companies has filed their Draft Red Herring Prospectus (DRHP), an important document detailing their business operations, strengths, risks and financial data. When SEBI, the market regulator, approves these documents, the companies will be fully prepared to launch their IPOs. Continue reading this blog to gain detailed insights about the list of upcoming IPO in January 2024.
Additional Read: Upcoming IPOs in February 2024
Table of Content
List of Upcoming IPO in January 2024
Here is the list of upcoming IPO in January 2024 as shown in the table below.
What Are Upcoming IPO?
Upcoming IPO in 2024 are those public issues for which the issuing companies have filed their Draft Red Herring Prospectus (DRHP) with SEBI. These IPOs are expected to launch within the next few weeks or months of 2024. Many renowned companies that put their IPO plans on hold in 2023 have plans to go public this year.
An Initial Public Offering (IPO) involves the process of conversion of a private company to a public through allotment of shares to investors. New shares are introduced to the public at a certain issue price or a price band. Companies launch IPOs to collect funds from investors for a variety of purposes, including loan repayment, expansion or R&D. Shares can be traded freely among investors once they are listed on stock exchanges.
Most importantly, upcoming IPOs are recognized as future leaders in the business world. Investors here can avail the opportunity of investing in the companies from the very beginning. Interested ones can find out the names of companies on the SEBI website under ‘Public Issues’.
Companies listed under the ‘Upcoming IPO’ section will likely be launched in the upcoming weeks or months.
Additional Read: Interim Budget 2024
What Are the Eligibility Criteria to Invest in Upcoming IPOs?
Every investor must meet certain eligibility criteria to invest in an IPO in India. Following are the eligibility guidelines for investors to follow before they start investing:
- To apply for an IPO in India, investors must reach the age of 18 years.
- An investor should have a Demat account with a depository participant registered under depositories.
- A trading account is a must for selling IPO shares.
- To purchase an IPO in India, it is a must to have a valid bank account and a sufficient balance.
- The bank account linked with the demat account should have an internet banking facility along with ASBA and UPI facilities.
- Every investor must have a Permanent Account Number (PAN). Without this, no investor can invest in an upcoming IPO in India.
You can open a demat and trading account with us and enjoy zero brokerage fees for a lifetime. Our account allows you to easily apply for an IPO of your choice with a few clicks.
How to Invest in the Upcoming IPO?
To invest in the upcoming IPOs in January 2024, an investor needs to follow the below-mentioned steps with our online trading platform.
Step 1: Visit the IPO application page, enter the client code, and click on ‘Proceed’.
Step 2: An OTP will be sent to you; validate it.
Step 3: Select the IPO with the necessary details. Enter your UPI ID and then select the UPI handle. Finally, submit the IPO application.
Step 4: Make sure there is an adequate amount in your account. Open the UPI app and approve the request.
Step 5: With proper allocation of IPO, the amount will get deducted. Otherwise, the amount will remain unblocked in your bank account.
List of Popular Upcoming IPOs in January 2024
In 2023, the Indian primary market was able to raise a staggering sum of Rs. 49,500 crore from 58 IPOs despite a relatively weak global market. With this success, the primary market is expected to perform positively in the year 2024.
There are upcoming issues worth Rs. 28,440 crore hoping to enter the public market.
Ola Electric
Ola Electric, a subsidiary of Ola, expects to launch its IPO soon in 2024. Despite facing challenges of safety concerns and customer services, Ola Electric has experienced a significant rise in its revenue. This is reflected in its rapid transformation from a cab aggregator to a leading electric vehicle manufacturer.
PhonePe
PhonePe, a leader in digital payment in India, will launch its IPO soon between 2024 and 2025. The recent valuation of the company reached Rs. 12 billion. Currently, PhonePe is aiming to reach different digital payment sectors. Following this recent expansion and growth of the company, investors expect the launch of its IPO in 2024.
Aakash (Byju’s Subsidiary)
Aakash, bought by Byju’s in 2021, is hoping to launch its IPO around mid-2024. Since the time of joining Aakash with Byjus, the earnings have tripled. Aakash expects to earn Rs. 4,000 crore in revenue and Rs. 900 crore in EBITDA during the fiscal year 2023-24.
Apart from this, Aakash is also one of the leading player in the test-prep market. Because of its significant growth during recent years, the launch of its IPO will turn out an attractive opportunity for potential investors.
PharmEasy
Because of its strong financial records, PharmEasy is hoping to launch its IPO soon. Owned by Tata, the company generates revenue of more than Rs. 3,950 crore. Once Pharmeasy receives approval from the Competition Commission of India (CCI), Rajan Pai will own approximately 15% of the company.
The funds raised through IPO will be utilized to lower its debt and support the growth of the company.
OYO Rooms
The main aim of raising funds from the public lies in paying off a significant portion of its debt. For this reason, the launching date of the IPO of OYO Rooms is delayed. After its initial filing for an IPO, the company refiled its draft red herring prospectus to the Securities and Exchange Board of India (SEBI). The size issue has been reduced by almost half and is likely to get raised through a primary issuance of shares.
Swiggy
Swiggy, a prominent player in the food delivery industry, expects to go public in 2024. The IPO of the company once launched expects to reflect its growth and position in the market. Zomato is its rival competitor. Swiggy will be the second food delivery platform to go public after Zomato.
First Cry
First Cry, a popular online platform for child care, expects to go public in 2024. This is a Pune-based startup. According to recent news, First Cry will launch its IPO soon after the 2024 Lok Sabha elections.
MobiKwik
MobiKwik has partnerships with DAM Capital Advisors and SBI Capital Markets. With their help, the company is aiming to launch its IPO and raise around Rs. 84 crore. Although it has delayed its IPO launch before, they are expected to launch in 2024.
Being one of India’s significant mobile wallets and pay-later service providers, it is benefitting small and medium-sized companies opting for public offerings in India.
Additional Read: How does an IPO work?
To conclude, investors should stay up to date about the latest IPOs in the stock market. This will enable them to make more informed decisions after carefully weighing the pros and cons. Even if you are not willing to invest in an IPO, you can track the performance of IPOs to be launched. This way you can add up your knowledge of the capital markets.
To know more about upcoming IPO in India, continue exploring our website for the latest details. You can check the DRHP of each company planning to go public to check its business details and financial statements.
Additional Read: IPO Investment Strategy
Frequently Asked Questions
Before investing in an IPO, you must know about the financial health of the company, business model and industry trends. Apart from this, it is important to have a clear understanding of the IPO price, its process of allotment, and the risks associated with an IPO.
When a company is ready with all the necessary paperwork, it is an ideal time to file an IPO in India. Additionally, it should also have a good financial history that shows all its potential investors as a good investment.
For any company, it usually takes around 4-6 months to complete the entire process of IPO application and issue an offering.
It is possible to make an IPO subscription online either through UPI or ASBA.
References
https://www.sebi.gov.in/sebiweb/home/HomeAction.do?doListing=yes&sid=3&ssid=15&smid=10
https://www.bajajfinservsecurities.in/ipo
https://www.bajajfinservmarkets.in/demat/eligibility-to-apply-for-ipo.html
