In 2024, the Indian stock market will see many new companies go public. It’s important to consider which sectors lead this charge, such as healthcare, finance, technology, and consumer services. Understanding these trends can help investors plan their strategies effectively.
What is an IPO?
An IPO, or Initial Public Offering, is when a private company offers shares to the public for the first time. This process allows companies to raise funds from public investors, which helps them expand their operations and enter new markets. IPOs are an excellent opportunity for retail and institutional investors to own a stake in growing businesses. Investors often flock to IPOs hoping to secure shares in companies with high growth potential, leading to substantial returns.
The Biggest Upcoming IPOs of 2024
Understanding these upcoming IPOs in 2024 and take a look at the sectors that are poised to dominate.
KRN Heat Exchanger and Refrigeration IPO
- Issue Date: 25 Sep 2024 – 27 Sep 2024
- Allotment Date: 30 Sep 2024
- Sector: Engineering
- Issue Size: To be announced
KRN Heat Exchanger and Refrigeration is part of the engineering sector, known for its role in providing essential equipment in various industries. The IPO details are yet to be disclosed, but the company’s strong market presence could make it an attractive investment.
TechEra Engineering IPO
- Issue Date: 25 Sep 2024 – 27 Sep 2024
- Price Range: ₹75 – ₹82
- Allotment Date: 30 Sep 2024
- Issue Size: ₹35.90 Cr
- Sector: SME/Engineering
TechEra Engineering is another key player in the engineering sector, specifically focusing on small and medium enterprises (SMEs). Priced reasonably, the TechEra IPO aims to raise ₹35.90 crores, and its competitive pricing could attract retail investors.
Unilex Colours and Chemicals IPO
- Issue Date: 25 Sep 2024 – 27 Sep 2024
- Price Range: ₹82 – ₹87
- Allotment Date: 30 Sep 2024
- Issue Size: ₹31.32 Cr
- Sector: SME/Chemicals
Unilex Colours and Chemicals is preparing to raise ₹31.32 crores in its IPO. The company specialises in chemicals, which are crucial industries supporting sectors like manufacturing and agriculture. Investors looking for opportunities in SMEs and industrial materials might find this IPO appealing.
Sahajanand Medical Technologies IPO
- Issue Date: To be announced
- Sector: Healthcare
- Issue Size: To be announced
Sahajanand Medical Technologies produces medical devices in the healthcare sector. With the ongoing rise in demand for healthcare services and innovations in medical technologies, this IPO is set to attract considerable attention from investors.
ESDS Software Solutions Ltd IPO
- Issue Date: To be announced
- Sector: IT/Software
- Issue Size: To be announced
ESDS Software Solutions is a tech-driven company specialising in cloud services and software solutions. The IT sector has shown substantial growth, and the IPO for ESDS is expected to benefit from the increasing demand for digital infrastructure and cloud computing.
PharmEasy IPO
- Issue Date: To be announced
- Sector: Healthcare
- Issue Size: ₹6,250 Cr
PharmEasy, a well-known digital healthcare company, wants to raise ₹6,250 crores through its IPO. With a solid user base and increasing adoption of online medical services, PharmEasy’s public offering could be a big success in 2024.
Navi Technologies IPO
- Issue Date: To be announced
- Sector: Financial Technology
- Issue Size: To be announced
Founded by Sachin Bansal, Navi Technologies is involved in fintech, lending, and health insurance. With the increasing popularity of digital finance and the fintech revolution in India, this IPO is expected to create a buzz.
Upcoming IPOs in Key Sectors
Finance and Fintech
With Navi Technologies leading the pack, the finance and fintech sectors are rapidly evolving. The shift towards digital banking and online financial services has opened new avenues for companies offering innovative financial products.
Navi Technologies, which operates in multiple financial domains, from microfinance to mutual funds, is positioning itself as a critical player in fintech. The sector’s growth potential is immense as more consumers embrace online banking and investment platforms. The upcoming IPOs in this sector reflect the growing importance of fintech in reshaping how people manage their finances.
Technology and IT
The technology and IT sector dominate the IPO landscape, with companies like ESDS Software Solutions and Navi Technologies planning their market debuts. As India embraces digitisation across various industries, demand for software services, cloud computing, and fintech solutions will only grow.
Navi Technologies is one of the most anticipated IPOs in the fintech space, thanks to its diverse lending, health insurance, and mutual funds offerings. The rapid adoption of financial technology in India, combined with the increasing need for cloud solutions, is driving the growth of tech companies, making it a crucial sector for investors in 2024.
Engineering and Manufacturing
The engineering and manufacturing sectors remain at the forefront of India’s industrial growth. Companies like TechEra Engineering and KRN Heat Exchanger and Refrigeration are gearing up for their IPOs, reflecting the sector’s importance in providing essential infrastructure and equipment for various industries.
These companies play a crucial role in India’s growing manufacturing and export landscape, and their IPOs are likely to attract investors looking for long-term industrial growth. As India aims to position itself as a global manufacturing hub, the engineering sector is bound to see further expansions.
Healthcare
Healthcare has emerged as one of the most critical sectors, especially in a post-pandemic world. With IPOs like PharmEasy and Sahajanand Medical Technologies lined up, the healthcare industry continues to show immense promise. Companies in this sector want to raise capital to meet the rising demand for healthcare products, services, and technologies.
PharmEasy, in particular, is capitalising on the growth of telemedicine and online pharmaceutical delivery. The company’s IPO is one of the largest in the healthcare space, and its focus on digital services makes it a trendsetter in the industry. Investors seeking long-term growth potential should keep an eye on the healthcare sector as it expands digitally and physically.
How to Invest in Upcoming IPOs?
Investing in upcoming IPOs can be an exciting opportunity to be part of a company’s growth journey. However, it is essential to conduct thorough research before making any decisions. Here are a few steps to help you get started:
- Research the Company: Before applying for any IPO, understand the company’s financials, business model, and market potential. Reading the Draft Red Herring Prospectus (DHRP) can provide valuable insights into the company’s goals and risks.
- Open a Demat Account: To invest in any IPO, you need a demat account, where your shares will be held electronically. You can open a demat account with any registered stockbroker.
- Place Your Bid: Once the IPO opens, you can place a bid for the number of shares you wish to purchase. Make sure to bid at the right price to increase your chances of getting an allotment.
- Allotment: After placing your bid, the company will allocate shares based on the number of applications received. If the IPO is oversubscribed, you may not get the full allotment of shares, but it’s still worth applying.
- Monitor the Performance: After the shares are listed on the stock exchange, monitor the stock’s performance to decide whether to hold or sell based on market conditions.
Conclusion
The IPO pipeline for 2024 is filled with promising companies from various sectors, offering a wide array of investment opportunities. You can decide which upcoming IPOs to invest in by staying informed and doing proper research. Sectors such as healthcare, technology, and finance are likely to continue dominating the IPO landscape. With companies focusing on digital transformation, infrastructure development, and financial innovation, 2024 could be a great year for IPO investments.
