When companies want to raise money from the market, whether for increasing capitalization, market expansion, restructuring or settling liabilities, they release stocks that can be purchased by both individuals and institutions. During the release of a new Indian IPO, there’s a rush to buy it and a lot of people await prominent IPO releases. But it’s essential to track IPOs well in advance, so that you not only get to know which stock is going to be released when, but also get time to figure out the pros & cons of investing in it.
Market knowledge and understanding of economic sectors also helps a lot in choosing an IPO, but proper tracking is essential. Prior to investing in an IPO, it’s best to get info about company performance, investor history, balance sheets, debt, assets, liquidity etc. As is said, there’s no alternative to doing your homework well before any investment. Here are the simplest ways to track upcoming Indian IPOs in 2021:
All stock exchanges like BSE, NSE have special sections that provide information about IPOs. Fetching information straight from exchange websites is preferable to other methods because it is frequently updated and is bound to be more reliable than others. Official IPO prospectus can also be downloaded from exchange websites. For knowing about all IPOs, checking different exchange websites is a better option than just sticking to one. One of the limitations of exchange websites is that since they upload information only after a rigorous verification process, there may be some delay in recent information. Exchange websites are widely preferred to track IPOs.
The giant search engine has become a one-stop destination for all sorts of information. It has revolutionized information sharing. Relevant information regarding IPOs can be found on Google, along with recent news, analysis, expert opinion, commentary or any untoward event that may impact the latest IPO. Google’s dedicated news feed, known as Google News, is a good way to track IPOs and get the latest information about them.
On Google News, there’s an option to feed the topic that you are interested in and it displays all the recent happenings. If you know what precisely you are looking for then you can feed that, else just creating a personalized news alert for an upcoming Indian IPO would do. One of the main advantages of Google News is that it’s not limited to any stock exchange or even geography. Within minutes, you can get info of all upcoming IPOs from the NSE to BSE to even overseas ones such as NASDAQ and NYSE. All info on a new Indian IPO can be obtained via Google.
National financial mainlines are published daily and contain most up-to-date information along with opinion pieces and market analysis by experts. Most of these newspapers are available in the digital format as well, and in case you are awaiting IPO releases of some prominent company, and they cover it along with market expectations and reactions. Referring to digital editions of financial papers to track IPOs is a good option.
Yahoo may sound to be old and bit outdated now, but Yahoo finance is an altogether different ballgame. It’s one of the most exhaustive portals to get all the info regarding a latest Indian IPO. The dedicated IPO section features release date, symbol, prince and links to the profile and all the news pieces about the IPO, so that potential buyers can get all the clarity they are looking for. All the information on Yahoo Finance is updated real-time, and there are multiple linked brokers for portfolio tracking. It has an option to track the performance of your portfolio as well. This comes quite handy for existing investors. There are charts for better insights and even a watchlist section where different stock prices and their performance can be compared.
As the name goes, this website stores all the information related to IPOs. Apart from the usual news updates and commentaries, there’s also a market dashboard that provides statistical details so that there’s no room for any doubt. IPOs are also categorised based on parameters like release date, expectation and performance indices. IPO Monitor also takes out research reports for its subscribers that provide more detailed insights for those who want to gain in-depth knowledge. IPO monitor can be used to find out about an upcoming Indian IPO.
A lot of financial websites and stock market advisory platforms come up with an IPO calendar, which is a smart and easy way to know about all the IPOs to be released in a calendar year. The IPO calendar includes the date and the month of release as well, so that buyers can well plan in advance and get ample of time to do their own research about the stock, check the company’s record and decide accordingly whether or not investing in it would be a good decision. You can track IPOs via calendars and then do further reading.
Red Herring Prospectus
If you have made up your mind about the IPO that you want to buy, then the next step is going through the draft red herring prospectus (DRHP) to grasp all essential takeaways about the company. As per SEBI (Securities and Exchange Board of India) guidelines, it is compulsory for all companies that want to issue IPOs to release the DRHP. It provides all the relevant financial information about the company that you need to know before investing: company’s past, growth avenues, management structuring, founders, vision, challenges, top management, market reputation. Once you are done with tracking new Indian IPOs, you should check out the DHRP.
Benefits of IPO tracking
Timely tracking of IPO gives you a cutting-edge advantage by equipping you with the requisite knowledge and giving time to explore more options, research about the company and get a thorough understanding of the market, so you can make an informed decision. Diversifying a portfolio is one strategy that most investors rely upon to reduce risk. You can build a diverse portfolio only if you are well acquainted with market trends. Tracking IPOs also gives a better picture on whether the said stock would be undervalued or overvalued, and gives time to strategize well in advance.
At the beginning of a new year, just like other plans, people also chalk out their investment plans. Investing in IPOs in gaining popularity these days due to the returns it yields. But before investing in an IPO, it’s essential to track IPOs, compare their prices and do thorough background research about the company, its promoters and the reason why it’s raising money. There are multiple ways to track IPOs, including getting info from stock market exchanges or dedicated market portals that give a rigorous comparative analysis. Only through constant tracking you can get an idea about upcoming Indian IPOs. All financial decisions require prudence and foresight and for that constant tracking is indispensable.