When a private company needs capital, it has the choice of borrowing from lenders and lending institutions or it can sell shares to retail and institutional investors through the issuance of new stock. This is known as an initial public offering. Many startups and companies prefer to go in for IPOs as it is a great way to raise capital while investors can get underpriced stocks early on and build their wealth when the same stock prices rocket.
So, if you are keen to find out about upcoming IPOs, here are some proven and tested methods to get the information you desire.
Stock exchanges like BSE and NSE have websites that are regularly updated to keep investors informed. These platforms have a dedicated page for upcoming IPOs. So, if you are keen to know which companies are going to launch an IPO, you can check these websites. BSE has a tab called Public Issue that you can access from the homepage to find out about an upcoming IPO while NSE has a tab called Market Data that will keep you up to date.
Most investors who are keen to invest in IPOs and other financial instruments on the stock market make it a point to devour business news. While newspapers do have a business news section, the information that you will find there is often a day or so old. So, if you are looking for the latest news, online news portals are perfect choices. You will be able to get the latest reports on upcoming IPOs and that will allow you to do your research on each company before its initial public offering.
When you open a free trading account with a brokerage house, you have the option of subscribing to newsletters. That will enable you to track upcoming initial public offerings with ease. You can even check the news section on the homepage of the brokerage house website, where you will be able to find nearly real-time information to make an informed choice. Besides this, the brokerage house will also provide expert analysis that you can read to understand whether an upcoming IPO is worth investing in.
Why Should You Track Upcoming IPOs
It is good to be an informed investor. When you track upcoming initial public offerings, you get insights into the market trends and will also be ahead of other investors who want to invest in IPOs. You will be able to get a lot of information and that, in turn, will allow you to take advantage of opportunities that come your way.
Today, more and more retail investors, including newbies, are tilting towards IPOs as they enable them to generate great returns. Many well-known startups, as well as existing private companies, are going public and that has created a lot of interest among investors. Hence, keeping an eye on upcoming IPOs is a great way to build wealth.
SEBI has stringent rules for companies that want to go public. Most companies usually announce well in advance that they will be going public and under normal circumstances, this announcement comes with the regulatory filings for registering as well as issuing new shares. Thereafter, it can take anywhere from a few weeks to over a year before the IPO becomes a reality. However, you would get information about upcoming IPOs around six months in advance and that should be adequate to determine whether an IPO is worthwhile.
When you invest in an IPO, you can profit from the jump in share prices after the stock gets listed on the stock exchange. If you feel that a company has the potential to grow, it makes sense to invest in its IPO. Getting an early start can help you build wealth and that is why you should not neglect the different methods of tracking upcoming initial public offerings.
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