Upcoming IPOs - List of Latest IPOs in India

When it comes to investing, both avenues carry some degree of risk.

However, unlike listed businesses that have been under public and regulators' scrutiny, most IPOs are untested business models. Further, IPOs are usually priced at exorbitant valuations that do not offer enough margin of safety.

In our view, one should wait for track record post listing and enter well performing businesses at reasonable valuations.

Due diligence and margin of safety are must in our view, whether it's an IPO or listed stocks one wants to invest in.

The issue size is the the total value of the IPO. It is calculated by multiplying the number of shares offered by the company by the issue price per share.

Under the market regulator’s guidelines, there are four types of investors who can bid for shares during the IPO process.

1. Retail investors (RII)

   The category of retail investors is the most popular one. It includes both resident Indians and non-resident Indians (NRI), as well as HUFs. The maximum sum that can be invested in this category is Rs 2 lakhs.

   This category allows bidding at the cut-off price, with retail investors receiving at least 35% of the total offer.

2. Non institutional investors (NII)

   The non-institutional category is open to all retail category applicants who wish to apply for an amount greater than 2 lakh. A minimum of 15% is booked for them.

   NII have the option of withdrawing their bids before the day of the allotment. They are not, however, entitled to bid at the cut-off price.

3. Qualified institutional buyers (QIB)

   QIP in the stock market is a fundraising tool, whereby a company raises capital by issuing equity shares, fully and partly convertible debentures, or any securities other than warrants which are convertible to equity shares.

   The only parties eligible to purchase QIPs are Qualified Institutional Buyers (QIBs), which are accredited investors, as defined by the market regulator.

4. Anchor investors

   Anchor investor category includes QIBs applying to invest Rs 100 million or more through the book-building process. Up to 60% of the QIB group may be allocated to anchor investors.

   Note that the price for anchor investors gets set separately.

   Anchor investors need a minimum application size of Rs 100 m, and merchant bankers, promoters, and their immediate relatives are not eligible.