After a dull period for the initial public offerings (IPOs) in the last few months, the josh is high as companies are now lining up for IPOs. At least 5 IPOs are opening for subscription in the coming week. The last IPO was that of Macrotech Developers in April 2021. Since April, India has been in a grip of a deadly second wave of Covid-19 wherein the peak number of daily new Covid cases topped more than 4 lakh on some days, but now it seems that there is a decline in the number of cases. The country has reported less than 1 lakh cases for four consecutive days..
What Is an Initial Public Offering (IPO)
An initial public offering (IPO) is the process of offering shares of the companies to the public in a new stock issuance. Public share issuance allows a company to raise capital from public investors. The company which offers its shares is known as the ‘issuer’.
Any company, irrespective of its type, business and the number of years from its time of establishment can go ahead and get itself listed in the exchange to go public.
Take a look at the 5 IPOs opening next week
Shyam Metalics IPO
Steel manufacturing company Shyam Metalics and Energy has fixed a price band of Rs 303-306 a share for its Rs 909 crore IIPO. The three-day IPO will open on June 14 and close on June 16. The public issue will open for a day on June 11 for anchor investors.
Sona BLW Precision IPO
Blackstone-backed firm Sona Comstar will launch its IPO on June 14. The issue will close on June 16. The price band for the issue has been fixed at ₹285-291 per share.
Navoday Enterprises IPO
Marketing and event management company Navoday is going to launch its IPO for subscription on 14 June with a price band fixed at ₹20 apiece.. The issue will close on June 17.
KIMS Hospitals IPO
KIMS Hospitals: Krishna Institute of Medical Sciences Ltd (KIMS) opens for subscription from June 16 with a price band of Rs 815-825 per share. The iisue will close on June 18.
Dodla Dairy IPO
The initial public offering of TPG-backed Dodla Dairy Ltd will open on 16 June. Price band for the issue has been fixed at ₹421-428 a share. The issue will close on 18 June.
Should you enter the IPO market
Making money in an IPO market is not as easy as it seems; investing in it is a high-risk high-return game. You need to first look at your investment horizon. What is the purpose of investment? What is your objective of entering into an IPO market?
Never invest in a stock or an IPO market if you do not have a clear understanding. Renowned investor Warren Buffett always says: “Invest within your sphere of competence.”