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An Overview
The Indian IPO market has been witnessing a boom in 2023, with many companies going public and attracting huge investor interest. IPO stands for initial public offering, which is the process of offering shares of a private company to the public for the first time. IPOs are important for both the company and the investors.
For the company, IPOs help raise capital, increase visibility, attract talent, and create a liquid market for its shares. For the investors, IPOs offer a chance to participate in the growth story of a company, diversify their portfolio, and potentially earn high returns.
What are the upcoming IPOs in December 2023?
There are several IPOs lined up to hit the Indian stock market in December 2023, across various sectors and segments. Here is a list of some of the most anticipated IPOs to watch out for in the last month of this year:
DOMS Industries Limited IPO
The company is a leading manufacturer and exporter of stationery products, such as pencils, pens, erasers, sharpeners, etc. The IPO is expected to open on December 13, 2023, and close on December 15, 2023, with a price band of Rs 121 to Rs 126 per share. The issue size is Rs 1,200 crore, and the lot size is 1,000 shares.
Accent Microcell Limited IPO
The company is a manufacturer and supplier of microcrystalline cellulose, a pharmaceutical excipient used in tablets and capsules. The IPO is expected to open on December 14, 2023, and close on December 16, 2023, with a price band of Rs 51 to Rs 54 per share. The issue size is Rs 100 crore, and the lot size is 2,000 shares.
Sheetal Universal Limited IPO:
The company is a real estate developer and builder, with projects in residential, commercial, and hospitality segments. The IPO is expected to open on December 15, 2023, and close on December 17, 2023, with a price band of Rs 81 to Rs 86 per share. The issue size is Rs 150 crore, and the lot size is 1,600 shares.
Shanti Spintex Limited IPO:
The company is a manufacturer and exporter of cotton yarn, with a capacity of 36,000 spindles. The IPO is expected to open on December 16, 2023, and close on December 20, 2023, with a price band of Rs 41 to Rs 44 per share. The issue size is Rs 50 crore, and the lot size is 3,000 shares.
Additional Read: Upcoming IPOs in India in 2024
How to invest in IPOs and earn profitable returns?
Investing in IPOs can be rewarding, but also risky. There is no guarantee that the IPO will perform well after listing, or that you will get the desired allotment. Therefore, you need to be careful and diligent while applying for IPOs. Here are some tips and strategies to help you increase your chances of getting profitable returns from IPOs:
- Do your homework: Before applying for any IPO, you should do your own research and analysis of the company, its business model, financial performance, growth prospects, competitive advantages, risks, and valuation. You should also read the prospectus of the company, which contains all the relevant information and disclosures about the IPO. You can also refer to the IPO reviews and ratings by various experts and brokerage houses, which can give you an idea of the quality and attractiveness of the IPO.
- Pick a company with a strong underwriter: The underwriter is the investment firm that helps the company go public and manages the IPO process. A strong underwriter can indicate the credibility and reputation of the company, as well as the demand and pricing of the IPO.
- Be cautious: IPOs can be tempting, but also risky. You should not invest in IPOs based on hype, speculation, or peer pressure. You should also avoid applying for IPOs that are overpriced, overhyped, or oversubscribed. You should invest only what you can afford to lose, and not put all your eggs in one basket. You should also be prepared for volatility and fluctuations in the post-listing period, and not panic or sell in a hurry.
- Consider waiting for the lock-up period to end: The lock-up period is the time frame during which the company’s promoters, directors, employees, and other insiders are prohibited from selling their shares in the market. The lock-up period usually lasts for six months after the IPO, and its expiry can have a significant impact on the stock price. If the insiders sell their shares, it can create a downward pressure on the stock price, and vice versa. Therefore, you may consider waiting for the lock-up period to end before investing in an IPO, as it can give you a clearer picture of the company’s performance and valuation.
Additional Read: Tips for investing in an IPO
Wrapping Up
IPOs can be a great way to invest in the growth and innovation of a company, and earn profitable returns in the long run. However, IPOs are not a sure-shot way to make money, and require careful research, analysis, and planning. By following the tips and strategies mentioned above, you can increase your chances of getting a good allotment and a good return from the upcoming IPOs in December 2023.
Disclaimer: Investments in the securities market are subject to market risk, read all related documents carefully before investing.
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