After a recent lull in activity, the primary market is experiencing a resurgence, with three initial public offerings (IPOs) hitting Dalal Street and a listing scheduled for the upcoming week. These developments indicate renewed investor interest and confidence in the primary market.
- The primary market experiences a resurgence with three IPOs and a listing.
- IRM Energy leads with a Rs 545-crore IPO focused on expansion and debt repayment.
- IRM Energy’s IPO price band is set at Rs 480-505 with a closing date of October 20.
- Grey market premiums show strong investor interest, with an 18 percent premium on IRM Energy.
- Investment opportunities in the primary market for diversification and financial rewards.
- Steps to invest in the latest IPOs, including Demat and Trading accounts, research, bidding, and allotment.
IRM Energy Leads the Way
Gujarat-based gas distribution company IRM Energy will take the lead by launching its Rs 545-crore IPO on October 18. This marks the first IPO in the mainboard segment for the current month. The offering consists solely of a fresh issue, ensuring that all proceeds go toward expanding the city gas distribution network in Tamil Nadu, debt repayment, and general corporate purposes.
Pricing and Dates
The IRM Energy IPO’s price band has been set at Rs 480-505 per share, and the offering will conclude on October 20.
Grey Market Premium
In the grey market, the IPO shares have attracted a notable premium. IRM Energy shares are trading at an 18 per cent premium over the upper price band.
In these revitalised primary market activities, astute investors encounter exclusive prospects to diversify their portfolios and potentially harvest financial gains. Engaging in these initial public offerings (IPOs) and listings empowers investors to align with promising companies at an early juncture, potentially paving the way for capital appreciation over time.
How to Make Smart IPO Investments
Embarking on the journey of investing in the latest IPOs is a fairly straightforward process. As you embark on this path, consider these steps:
- Secure a Demat Account: Ensuring you possess a Demat (Dematerialized) account is paramount, as it’s instrumental for safeguarding and trading shares in electronic form.
- Open a Trading Account: If you haven’t already, open a trading account with a reputable stockbroker or brokerage firm.
- Delve into IPO Research: Conduct in-depth research on the IPO you intend to invest in. Scrutinize the company’s financials, its business model, and its growth prospects.
- Online Application: In this digital age, most IPO applications can be completed online through your trading account. Just fill out the application form and provide the requisite information.
- Ensure Adequate Funding: Verify that your trading account holds the necessary funds to cover the desired investment amount.
- Bidding Process: Place your bid for the IPO within the specified price band during the subscription period.
- Allotment Evaluation: Following the IPO’s closure, the allotment process comes into play. Success in your bid translates to receiving the allotted shares.
- Listing Commencement: Once the IPO is officially listed on the stock exchange, you can commence trading the shares in the secondary market.
It’s pivotal to seek guidance from a financial advisor or meticulously conduct due diligence before venturing into any IPO investment, thus ensuring that your decisions harmonise with your investment aspirations and risk tolerance.
Disclaimer: Investments in the securities market are subject to market risks; read all the related documents carefully before investing.