Exploring the surge of listed IPOs: Opportunities for investors in 2024

The IPO market in 2024 has witnessed an impressive surge, driven by strong investor interest and favourable economic conditions. With 38 companies achieving an average gain of 25% this year, the IPO market is demonstrating a profitable future for investors who participate in these initial offerings. This growing enthusiasm among investors reflects a broader trend of companies seeking to capitalise on public market opportunities to fuel their growth and expansion.

As more businesses opt to go public, investors are presented with diverse opportunities to engage with companies at a critical stage in their development. One of the key drivers behind this surge of listed IPOs is the strong performance of the Indian stock market in recent years. Moreover, the Indian government’s push for reforms and its emphasis on boosting the ease of doing business has created a conducive environment for companies to consider IPOs.

This article will explore the surge in listed IPOs while highlighting how to apply for an IPO today.

Things to remember before investing in IPOs

While IPOs offer high-value opportunities, investors must consider several factors before making investing decisions. Understanding the company’s fundamentals, industry position, and growth potential is crucial in evaluating the long-term prospects of a listed IPO.

Company fundamentals: Before investing in a listed IPO, it is essential to analyse the company’s financial health, revenue growth, and profitability. Companies with a clear growth strategy are more likely to succeed in the long run.
Valuation: Another critical factor is the company’s valuation at the time of the IPO. An overvalued IPO may lead to poor returns post-listing, while a reasonably priced IPO can offer better opportunities for capital appreciation.
Market conditions: Market sentiment plays an important role in the success of an IPO. During bullish markets, IPOs tend to perform well, while bearish markets may lead to subdued demand and lower returns.
Lock-in period: Investors should also be aware of the lock-in period associated with IPO investments. During this period, shares may not be sold, which could affect liquidity. In addition, you should be mindful of the exit load and expense ratio.

Opportunities for investors in the IPO market

There are various opportunities for investors who are looking to apply for an IPO today.

Diverse sector offerings: The 2024 IPO market is rich with companies from various sectors, including technology, healthcare, and renewable energy. This diversity allows investors to target specific industries that fit well with their financial goals and risk tolerance.
Early-stage investment potential: Investing in listed IPOs allows investors to buy into companies at the early stages of their public market journey. These shares are often available at prices that could be lower than future valuations if the company performs well.
Portfolio diversification: Adding IPOs to an investment portfolio can enhance diversification. Moreover, it will also provide exposure to new market entrants that may outperform established players.
Long-term growth opportunities: While IPOs can be volatile in the short term, they also offer long-term growth potential as companies expand and mature, rewarding patient investors with substantial returns over time.

How to apply for an IPO today?

The process of applying for an IPO has become more simplified and investor-friendly in recent years. Investors can apply for an IPO today through various channels, including online trading platforms, banks, and brokerage firms. Listed below is a step-by-step guide on how to apply for an IPO today:

Choose a trading platform: Select a reliable online trading platform or stockbroker that offers IPO application services. Ensure the platform is registered with SEBI and provides easy access to the IPO market.
Complete your KYC: Before applying for an IPO, make sure your KYC details are updated with your broker. This is a mandatory requirement for participating in IPOs.
Check IPO details: Once you have selected a platform, browse the available IPOs and check the details, including the price band, issue size, and closing date. Remember to assess the company’s fundamentals and growth potential before making a decision.
Apply using UPI: Most platforms now allow investors to apply for IPOs using UPI. Enter your bid quantity and price within the specified range and submit your application. You will receive a UPI mandate request to block the funds in your bank account.

Seize the IPO Surge

The surge in listed IPOs in 2024 offers investors a unique opportunity to participate in the growth of emerging companies across various sectors. By carefully evaluating the fundamentals and market conditions and applying through a trusted platform, investors can capitalise on the potential returns offered by IPOs.

For those eager to seize IPO opportunities, consider contacting Ventura and applying for an IPO today!