IPO (Initial Public Offering), is a process by which a private company can go public by sale of its stocks to the general public, allowing the company to raise capital from public investors. After the initial share sale, the company is no longer privately held. It becomes a public listed company with shares that are traded on a stock exchange.
The Upcoming IPO 2020 season has been stirring up the Indian stock market, creating quite a buzz. Pandemic had hit the IPO market hard which led to IPOs taking a break from markets but now they back with a roar. Investors are looking forward to the huge list of IPOs to benefit maximum, as they always have an eye on new companies that enter markets.
Why to Invest in IPOs?
IPOs in the stock market, have always been a trending topic of discussion. Investing in IPOs is a smart move for an informed investor but benefit and risk go hand-in-hand. And this turns true when these IPOs enter the secondary market and get impacted by external factors other than their own strong position.
1. Reasonable Pricing
You get to buy good quality company shares at affordable prices, which shall cost higher after they enter the market because the prices of shares tend to shoot up in fight to buy a good company.
2. Provides Opportunity
Any IPO Investment comes as an opportunity to the investor, providing higher probability of earning big by investing a nominal amount.
3. Long-term investment
Being equity investment, IPO Investment allows investors to meet their long term financial goals due to their tendency of yielding higher returns.
4. Transparent Pricing
IPO documentations clearly mention the pricing, making all the investors, no matter how big or small, eligible to access all the necessary information.
5. To become part owner of the company
Just by investing an affordable sum of money, you tend to become the part owner of the company.
With these benefits, also comes a certain amount of risk that an investor needs to take. It is always advisable to consult an expert and do a thorough research before investing. But, if the small investment leaves you with the chances of getting rich, why not go for it!
How to Track Upcoming IPOs?
During the early days of the stock market, tracking the upcoming IPOs was a tedious process, however, the scenario has changed exponentially. After the technological revolution, the presence of the internet makes it extremely feasible to get full benefit of IPOs. You can track the Upcoming IPO 2020 through the exchange websites i.e. NSE and BSE. NSE and BSE are the authorized sources and shall provide you with precise and genuine information regarding the forthcoming IPOs. IPO related information is usually available in a dedicated section on their websites. A search on google of NSE upcoming IPO, BSE upcoming IPO can also help to take you to the required website.
You can also connect with Marwadi Shares and Finance ltd. to gain insights regarding the upcoming IPOs. We eagerly await to serve you.