Upcoming IPOs in 2025

The year 2025 is going to be a year of lucrative opportunities for investors and traders. As the new year approaches, investors and traders can explore imminent initial public offerings that are about to hit the market. While investing in IPOs can be exciting and risky, it is a great way to participate in the growth story of a potentially groundbreaking venture.

However, it is necessary to consider different factors before investing in companies going for an IPO. In this article, we will give you insights and key inputs into companies that are going to launch their IPOs in 2025. It will enable you to make an informed decision and further capitalize on the best opportunities in the financial market.

Factors you should consider before investing in an IPO

1. Read Draft Red Herring Prospectus

Draft Red Herring Prospectus contains all the information regarding how the company is planning to use funds obtained from the public. A company files this document with SEBI before going public. So, to know what the company is intending you must read this document. Then decide to invest in an IPO.

2. Business model of a company

Understanding the company’s business model is very crucial. Know what are the company’s products and services, what is its expertise in the market, etc. You should also try to know what the new market opportunities are for the particular company. It will give you an idea about how much market share the company can gain and how the company will grow.

3. Management and promoters’ background

Promoters and management are the most important factors to consider. A reputable and strong promoter surely indicates positive growth for the company. So, consider researching these.

4. SWOT analysis of the company

Conduct a SWOT (Strength, Weakness, Opportunities, and Threats) analysis of a company that you are going to invest in. You can get details about the strengths and weaknesses of a company through its DRHP document.

5. IPO GMP

Before investing in an IPO, it is a must to know what the gray market is and GMP IPO. First of all, the gray market is an informal and unofficial market where IPO shares are traded before listing on the stock exchange.

GMP is the gray market premium. It is the difference between the share price of an IPO at which they are traded in this market and the price of an IPO issue

6. Company’s financial performance

Check how the company has performed over the past few years. This will give you an idea about whether the company’s sales and profit are regularly expanding.

How to apply for an IPO?

You can apply for IPOs in 2 ways. The first one is through brokers and the second is through internet banking. You can follow these steps to issue an IPO through a broker:

1. Locate the IPO tab on your Demat account.
2. Select the IPO name from the list of companies.
3. Enter the lot size which you have decided.
4. Select the bid price.
5. Enter your UPI ID, click submit, and approve the transaction from your UPI application.
6. You must wait for the mandate notification in your UPI app. This will block the application money until the shares are allotted to you.

If you want to apply for an IPO through Internet banking, then follow these steps:

1. Log in to your Internet banking account.
2. Find the ASBA tab and click on it. tab and click on it.
3. Now click on the ‘Apply IPO’ tab and select the IPO to apply.
4. Fill in details like applicant name and PAN, bid quantity, and price. Then hit the submit button.

The bid will be accepted on the same day if you place it before 2 PM on a working day. Otherwise, the bid will be scheduled for the next day.

Tips to invest in IPOs

By now, you have grasped how to navigate the IPO market and which are the most anticipated IPOs in 2024. So, here are some additional tips for your IPO investment journey:

1. Be skeptical and do thorough research.
2. Don’t overlook the DRHP document.
3. Bid at the cutoff price as it increases the chances of IPO allotment.
4. Know the valuation of companies.

Be prepared with an exit strategy.

Conclusion

Remember, the IPO market is very uncertain. The price movements cannot be predicted easily because there is a lot of volatility. There can be some IPOs that have given around 90% or more returns in a few months, but that’s not the case with all. This could also be the other way around. So, the only takeaway for you is to be cautious while investing in an IPO. Consider the factors and then only decide to invest.

FAQs about Upcoming IPOs