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What is an initial public offering (IPO)?

When a company decides to offer its shares to the public for the very first time, it makes an IPO, giving everyone a chance own a slice of the pie and stand to gain if the company takes off. Think of it as snagging up a new gadget for a steal, except here you get a shiny new stock.

Click to know all about IPO

The upcoming IPOs happen when a company achieved the unicorn status because of its potential growth and decided to go public. These companies need to apply for IPOs to SEBI and follow the IPO procedure set by SEBI.

The IPO company needs to declare various technical aspects; those are the fixed price and book building IPO. According to that the company share valuation will take place.

The IPO announced through two different methods one is the fixed price issue or book building issue.

In fixed price issues, companies along with underwriters evaluate different factors such as company assets, liabilities and other financial aspects. According to the financial evaluation, the fixed price of per share is declared in the market. This price is printed in the order document of the IPOs.

Second one is the book building issue where the price is decided during the process of IPO. It is not a fixed price, here the price band is decided, which is termed the floor price as the lowest price & the cap price which is the highest price. According to the demand of the IPOs, investors get the allotment of the IPO.

IPO taxation is governed by the Income Tax Act and is influenced by several factors such as the type of investor, holding period of shares, and profit earned on investment. Long-term capital gains (LTCG) arise if shares acquired through an IPO are held for over 12 months, and gains from the sale of shares are taxed at 10% if the gains exceed Rs. 1 lakh Short-term capital gains (STCG) are realized if shares are sold within 12 months and are taxed at a rate of 15%. In the case of dividend income on IPO shares, resident individuals are taxed at a rate of 10%

It is important to note that the prevailing tax laws in India may result in changes to the above tax rates

Any adult who wishes to invest and has a valid document such as a PAN card and Aadhaar card, can easily invest in the IPO.

You can check the new IPOs and open your demat account to make an investment in the following IPOs. It's not compulsory to have a trading account for your IPO investment.

Why IPOs are cool

Potential for High Returns

Potential for High Returns

Investing in IPOs has historically offered greater returns than other conventional investing strategies like equities or bonds.

Diversification at ease

Diversification at ease

By making investments in newly listed firms, investors might possibly spread their risk and limit losses while diversifying their portfolio.

Liquidity

Liquidity

The tremendous amount of interest in freshly listed shares makes IPO trading extremely liquid, allowing investors to purchase and sell shares accordingly.

Transparency

Transparency

Companies that go public are required to provide information that is transparent, giving investors a clear view of their financial accounts and other pertinent information.

IPO - Initial Public Offerings
CompaniesOpen DateClose DatePriceIssue sizeMin Investment
JNK India LtdApr 23, 2024Apr 25, 2024395649.47 Cr14220
Varyaa Creations LtdApr 22, 2024Apr 25, 202415020.1 Cr150000
Emmforce Autotech LtdApr 23, 2024Apr 25, 20249353.9 Cr111600
Shivam Chemicals LtdApr 23, 2024Apr 25, 20244420.18 Cr132000
CompaniesOpen DateClose DateListing DatePrice
Vodafone Idea LtdApr 18, 2024Apr 22, 2024Apr 25, 202412
Bharti Hexacom LtdApr 3, 2024Apr 5, 2024Apr 12, 2024755.2
SRM Contractors LtdMar 26, 2024Mar 28, 2024Apr 3, 2024225
CompaniesOpen dateClose datePriceIssue SizeMIN INVESTMENT
Storage Technologies & Automation LtdApr 30, 2024May 3, 20247328.03 Cr116,800.00
Amkay Products LtdApr 30, 2024May 3, 20245211.92 Cr104,000.00
Sai Swami Metals and Alloys LtdApr 30, 2024May 3, 20246015 Cr120,000.00

IPO Terms

Some of the terms that you must be aware of before investing in an IPOs.

IPO open date/ Issue close date: It is termed as the opening and closing date of the IPO bidding process. In the duration of open & close date, investors can apply for the IPO.

Lot size: The lot size of an IPO, refers to the quantity of shares that you need to buy for investing in the IPO.

Exchange: The stock exchange where the IPO is going to be listed after the IPO process. In India, there are two most famous stock exchanges which are the NSE and the BSE.

Issue price: There are two types of issue price which is the book building and the fixed price IPOs. Fix price refers to a specific price of an IPO. And the book building price refers to the price range of an equity, that is ₹320-₹400.

Issue Size: The issue size is referred to as the total monetary value of the IPO. You can get the issue size by multiplying the number of shares offered by the company with the issue price per share of the IPO.

Features of BlinkX trading app

High speed trading: Trade with ultra speed, and capture every trading opportunity.

Lot size: The lot size of an IPO, refers to the quantity of shares that you need to buy for investing in the IPO.

Easy UI: Navigate & explore more ways & options of investments

Frequent market update: Get regular updates & alerts about the stock market

Multiple strategies: Try & adapt new trading strategies for your online trade.

How To Apply for an IPO Online?
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Step 1

Research about the IPO and the company you want to invest in and identify the company's future plan, financial and other aspects.

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Step 2

To apply for IPO, you need to Open a demat account with BlinkX.

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Step 3

Add the required funds, select the IPO you want to invest in, enter the lot size and bid amount and execute the order.

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Download app

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Get your FAQs right

You can initiate an IPO bid by following simple steps through blinkX: 

Login to blinkX via any of our offered platforms. 

Under services menu, click IPO option. Select the IPO you want to apply for. 

Enter your UPI ID, bid price and quantity and click Submit. 

Approve the mandate received in your UPI application to complete the bid process.

IPO trading starts when the market opens on listing day. You can sell your shares only during the market hours, not before.

IPO pricing depends on multiple factors. The Lead managers provide the basis of issue price in the red herring prospectus. They compare the price of stock with the listed companies and try to find out the right price at which investors also make money.

The price of stock is also dependent upon the prevailing condition of stock market. If the market is in bull mode, the IPO can be priced higher and vice-versa. The price of IPO is also depend upon the factors like monopoly of the business, great management, growing business etc.

Kickstart your investment journey today. You've got this.

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