How to Enhance Return on your Savings Account Bank Balance through IPO Applications
IPO application is moderately safe idea tornenhance return on the balance in your savings account. It works like this. Yourncan apply for IPO online, invest minimum subscription amount for a few days. Ifrnyou are allotted the shares, you can sell those shares in market after the dayrnof allotment or keep invested depending upon your outlook and risk appetite.
We offer easiest and simplest way to apply forrnIPO online. Click here.
We herewith summarizernuseful information about upcoming IPOs in year 2021.
IPO | rn Tentative Issue Size (in Rs Crores)* | rn Tentative Date* | rn rn |
LIC | rn 70,000 | rn — | rn Life Insurance Corporation of India’s (LIC)rn IPO is going to be India’s largest-ever public issue in India. The divestmentrn in LIC was announced by the Finance Minister, Nirmala Sitharaman in the 2020rn Union Budget. |
Nykaa | rn — | rn 2021-22 | rn In a first by anrn online beauty market place, Nykaa is looking at a stock exchange listing byrn the end of 2021 or early 2022 at a valuation of $3 billion. |
Indian Railway Finance Corporation (IRFC) | rn 4,600 | rn January 2021 | rn IRFC primarily is inrn the business of financing asset creation or acquisition for the Indianrn Railways or any other business/entity under the Ministry of Railways. In itsrn words, it is the “dedicated financing arm” for the railway’s ministry. |
Indigo Paints | rn 1,000 | rn January 2021 | rn Thern issue size is expected to be around Rs 1,000 crore, of which fresh issue mayrn be worth Rs 300 crores whereas the rest will be an offer for sale. Thern company may use the proceeds from the IPO to expand existing manufacturingrn facilities. rn |
RailTel | rn 700 | rn January 2021 | rn RailTelrn is planning to launch its IPO sometime this year with 8.66 crore shares onrn offer. The IPO size is worth almost Rs 700 crores and most probably is a completern offer for sale. Thern company was incorporated in 200 and it provides telecom network andrn infrastructure services. The company is arn Central Public Sector Enterprise (CPSE) and a Mini Ratna company. |
Kalyan Jewellers | rn 1,750 | rn January to March, 2021 | rn Kalyanrn Jewellers, a jewellery brand based out of Kerala, is planning to raise aroundrn Rs 1,750 crores through its IPO. It was earlier expected to launch itsrn IPO in December 2020. Thern IPO may consist of a fresh issue of Rs 1,000 crores and the rest would be anrn offer for sale. rn |
Bajaj Energy | rn 5,450 | rn 2021 | rn Thern IPO size of the company is expected to be around Rs 5,450 crores, of which Rsrn 5,150 crores will be a fresh issue. The company has said that it is lookingrn to acquire Lalitpur Power’s 1,980 MW from the proceeds of the IPO. Any amountrn left will be used for general expenses. rn |
Studds Accessories | rn 450 | rn February 2021 | rn Thern company is a manufacturer of helmets, motorcycle accessories and ridingrn gears. Studds had begun its operations in 1973. Thern company’s managing director had said in an interview in August 2020 that thern company has an approximate market share of around 30%, which it aims to scalern to 40% in the next three years. rn |
Suryoday Small Finance Bank | rn 400 | rn 2021 | rn Suryodayrn Small Finance Bank is planning to launch an IPO of 2 crore equity sharesrn which comprises a fresh issue of 1.6 crore shares and the rest isrn offer-for-sale. The approximate IPO size is Rs 400 crores. Thern bank has branches in Maharashtra, Gujarat, Madhya Pradesh, Tamil Nadu, Delhi,rn Karnataka and few other states and union territories. rn |
Laxmi Organic Industries | rn 800 | rn — | rn Thern IPO size is worth Rs 800 crores approximately, of which the fresh issue isrn worth Rs 500 crores and the rest is offer-for-sale. Laxmirn Organic is a specialty chemicals company. It’s peers Rossari Biotech andrn Chemcon Specialty were subscribed 80 and 149 times respectively and listed inrn 2020. rn |
Craftsman Automation | rn 150 + | rn — | rn Thern IPO will have a fresh issue of Rs 150 crores and an offer for sale of 45.21rn lakh shares. The IPO proceeds may be used for clearing some of the debt andrn general corporate purposes. Thern company manufactures auto components. rn |
Barbecue Nation | rn 1,000-1,200 | rn 2021 | rn Barbecuern Nation, which operates a chain of restaurants across many cities, is planningrn to raise Rs 1,000-1,200 crores through its IPO issue. Ofrn the total issue size, around Rs 275 crores will be a fresh issue. The IPOrn proceeds may be used for outstanding borrowings and corporate purposes. Thern company operates more than 130 outlets in India. rn |
ApeejaySurrendra Park Hotels | rn 1,000 | rn 2021 | rn Thern hotel chain may raise up to Rs 1,000 crores in its IPO. The IPO may comprisern a fresh issue of up to Rs 400 crores and an offer-for-sale (OFS) of up to Rsrn 600 crores. Parkrn Hotels have a presence in most metro cities. rn |
Home First Finance Company | rn 1,500 | rn 2021 | rn Homern First will be raising around Rs 1,500 crores through an IPO, of which, Rs 400rn crores will be a fresh issue and the rest will be an offer for sale. Thern proceeds may be used to enhance capital base and growth opportunities. Thern company is a mortgage financier. rn |
Shyam Steel | rn 500 | rn 2021 | rn Thern IPO size will be around Rs 500 crores, which will be a combination of anrn offer for sale and fresh issue. Thern company is based out of Kolkata and plans to see the proceeds to repayrn borrowings and general corporate purposes. Shyamrn Steel operates all its steel manufacturing plants in West Bengal itself. rn |
Annai Infra Developers | rn 200-250 | rn 2021 | rn Thern IPO size is expected to be around Rs 200-250 crores. Thern company is an engineering, procurement and construction firm in the waterrn management and irrigation segment specifically. rn |
*Both, the issue size and date, is tentative and might varyrn once the issue goes live in the markets. | rn rn |
Here is an important generalrnknowledge about IPO applications.
Initial Public Offering (IPO) is the issue of shares to thernpublic for the first time and the listing of stock exchanges. It can be a freshrnissue of shares, an offer for sale by the existing shareholders or a mixture ofrnboth. The application for subscribing to the IPO can be done both online &rnoffline modes.
How to apply for IPO online?
The following are required forrnapplying for IPO:
· rnDemat account - To hold your shares.
· rnTrading account - To sell your shares.
· rnUPI ID - To block funds in your bank account.
Demat account:
In order to open a demat account, you must get in touch withrna SEBI registered Depository Participantrn(DP). The DPs can be banks or brokers.
Tradingrnaccount:
You must possess a trading account which is used to placernbuy or sell orders in the stock market.
UPI id:
UPI stands for Unified Payment Interface which is a uniquernid that allows you to carry out digital transactions.
Here are the key steps to applyrnfor an IPO online:
· rnLogin to your trading platform and select therndesired issue (company) in the Current IPO section.
· rnEnter the number of lots and price at which yournwish to apply for IPO.
· rnEnter your UPI ID and click on submit. Once yourncomplete this step, your bid will be placed with the exchange.
· rnAfter this, you will receive a notification tornblock your funds in your UPI app. You should now approve the block request.
· rnOnce you approval is successful, the requiredrnamount will be blocked in your bank account.
· rnThis is followed by allotment, where the blockedrnamount will be deducted from your bank account and the shares will be creditedrninto your Demat account. If there is any extra amount which is beyond thernextent of shares applied but is not allotted, it will be unblocked by yourrnbank.
How to apply for IPOs offline?
To submit an offline application, you must visit therndesignated collection centre( Self Certified Syndicate Banks: SCSB) and submitrnthe completed application form.
You would be required to fill inrnthe following details:
• rnName
• rnPAN number
• rnDemat number
• rnBid quantity
• rnBid price
Once you submit these details at the SCSB, the bank willrnupload the details of the aspects in the bidding platform. It is important thatrnyou provide the correct details so that the application is not rejected.
How to make money inrnIPOs
· rnFor retail investors, in case of overrnsubscription, it is important to note that allotment is done on a lotteryrnbasis. Therefore, it is advisable to apply for lots from multiple familyrnaccounts rather than applying for more lots from a single account.
· rnIn order to increase the chance of allotment, itrnis advisable to place the IPO bid price at a cut off as opposed to selecting arnlower price for the IPO. This implies that you are ready to buy the stock at therndecided final price.
· rnGrey market premium (GMP) refers to the premiumrnat which the people are ready to pay for the shares even before the stock isrnlisted on the exchange. A high GMP signifies a higher demand in the market andrnbenefits from getting more listing gains and is also an indicator of how thernIPO will behave in the market.
For further details, you can refer to the Red Herringrnprospectus. You are highly advised to thoroughly read the risk factors beforernapplying.