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Long-Term Gains: Building a Strong Portfolio with 2024 IPOs

Are you looking for ways to diversify your investment portfolio while keeping an eye out for future corporate growth? In this article, you will discover the benefits and risks of investing in 2024 IPOs, get introduced to some promising companies that are going public in 2024, and learn a balanced strategy to incorporate IPO exposure into your portfolio. 

Overview of Strong Portfolio with 2024 IPOs

Investing in initial public offerings (IPOs) can be a great way to get exposure to new companies and add potential long-term growth opportunities to your portfolio. As we look ahead to 2024, several major Indian companies are gearing up to go public, and investors should keep this on their radar. Doing the proper research and planning ahead of time is key to capitalising on these IPO opportunities.

Understanding the Benefits and Risks

Before deciding to invest in any IPOs coming in 2024, it’s important to understand both the potential upsides as well as the inherent risks. The main appeal of IPOs is the ability to get in early on a company that may experience remarkable growth in the coming years. Investing at the IPO price can mean substantial returns down the road.

However, there’s also substantial risk and uncertainty involved. There’s no guarantee a new public company will perform well or that the stock price will go up over time. Do thorough research before investing to determine if the valuation and long-term business fundamentals seem strong.

Picking the Right 2024 IPOs

As investors look ahead to all the major Indian companies that may go public in the upcoming IPO 2024, there are a few key names that seem especially promising.

1. Ola Electric

The electric vehicle industry is red hot in India right now. One of the most anticipated IPOs is from Ola Electric, the EV arm of the popular ridesharing platform Ola. With skyrocketing gas prices and government EV incentives, Ola Electric may be at the forefront of mainstream EV adoption in India in the coming years.

2. Boat Consumer Electronics

Over the past decade, Boat has established itself as one of the most popular headphone and earbud brands in India. The company is planning to raise ₹2,000 crore from its 2024 IPO. Given India’s growing consumer class and increasing electronics demand, Boat looks well-positioned for strong future growth.  

3. Delhivery 

As one of India’s largest logistics startups providing delivery and freight services, Delhivery has experienced massive growth amid the e-commerce boom. The company filed draft IPO papers in 2021 and is expected to launch its offering in 2024 officially. With ample room to expand and a clear leadership position, Delhivery’s IPO valuation may quickly rise.

These companies represent just a sampling of the major 2024 IPOs Indian investors should monitor. As the IPO dates get closer, investors can dive deeper into financial reports and growth projections to determine if these stocks may be a smart long-term addition to portfolios.

Creating a Balanced IPO Investment Strategy

While the most exciting part of investing in IPOs is identifying the specific companies with the biggest upside potential early on, it’s also crucial to mitigate risk through proper portfolio construction. 

Rather than putting all your investable capital into one or two 2024 IPO stocks, build a balanced portfolio that aligns with your risk tolerance and also includes more established stocks across different sectors. This balanced approach allows you to participate in the possible substantial gains from exciting new IPOs while also insulating your investments from volatility through diversification.

Additionally, you must wait to invest in IPOs on the first day of trading. Allow some time after the initial launch to measure market sentiment, trading patterns, and analyst opinions. 

Investing in an Initial Public Offering (IPO)

An Initial Public Offering (IPO) is the first time a private company offers its shares to the public. It is an opportunity for common investors to own part of a company before it gets listed on a stock exchange. 

Who Can Apply for an IPO?

In India, an IPO issuance follows guidelines set by the Securities and Exchange Board of India (SEBI). As per existing standards, the following investor categories are eligible to apply for IPO allotment:

• Non-Institutional Investors (NIIs) 

• Qualified Institutional Buyers (QIBs)

• Retail Individual Investors (RIIs)

• Employees of the company

Additionally, investors need to have a PAN card, can open a free Demat account, and a linked bank account to apply for any IPO.

Applying for an IPO Online

Today, most investors prefer to apply for IPOs through online modes. Here are the two most popular ways to bid for an IPO electronically:

1. Through Net Banking: Log into Net Banking and locate the ASBA (Application Supported by Blocked Amount) section. Select the ongoing IPO, fill in bidding details like bid quantity and price, and submit the form. The bid amount gets blocked in the linked account.  

2. Through a Stock Broker App/Website: Register on the broker’s portal, find the IPO section, choose the IPO details similar to net banking, and submit the form. The amount gets blocked after receiving a UPI mandate approval.  

In both cases, applications can be modified until 11 am on the issue closing day in case investors wish to revise their bids.

Applying for an IPO Offline

To apply offline, visit the nearest branch of the brokerage firm or the bank that has enabled the ASBA facility. Fill in the physical ASBA form with the desired IPO details, PAN, account and DP ID, after which the application amount will be blocked in the account. One can track the issue status later through the acknowledgment slip.

Tips for Applying

Here are some useful things to remember when bidding for an IPO:

• Read offer documents like prospectus carefully

• Assess company financials, business model and valuations  

• Give preference to long-term growth potential over listing gains

• Allocate a higher amount for subscription in popular issues

• Do not borrow money for applying to IPOs  

Following the above eligibility conditions and methods simplifies investing in an IPO. Staying informed of the latest SEBI regulations can also help investors apply smoothly.

Staying on Top of Financial News

As the upcoming IPO 2024 approaches and specific dates are officially announced, there are a few key financial publications in India that investors should follow closely for breaking news and in-depth analysis on all major approaching offerings. These include Bloomberg Quint, MoneyControl, Business Standard, Financial Express, and The Economic Times.

Reading opinions from multiple expert sources can help provide you with a balanced, well-rounded view of expected valuation and growth forecasts for all the major Indian companies going public in 2024. Take time to analyse the facts from multiple lenses instead of making knee-jerk reactions.

Conclusion

Researching upcoming IPO details, including valuation and long-term prospects, from trustworthy financial publications can help target promising investment opportunities before the official launch. Although IPOs present risks, incorporating a balanced selection of maturing and emerging firms into your holdings allows participation in future upside amid broader diversification.

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