Upcoming IPO in 2025

About IPO

An IPO, or Initial Public Offering, is the process through which a previously completely private business opens up its shares to be traded in public on an exchange. When a company goes public, it hires investment banks to ensure that the IPO results in a high influx of capital from the public. Share markets are of two types: primary markets and secondary markets. Primary markets involve the public investing in the latest upcoming IPO.

The process involves significant due diligence, advertising, and regulatory compliance efforts. The public buying the newly offered shares includes both retail and institutional investors, while those selling the shares include promoters and initial investors of the company.

What are Upcoming IPO?

Upcoming IPO are initial public offers of companies that have filed the Draft Red Herring Prospectus (DRHP), and are expected to open in the coming weeks or months of 2025.

It is important to be up to date about the latest IPO in the stock market because:

• You can then properly plan your IPO investment strategy based on your research on the companies and market sentiments regarding the IPO. Therefore, you can make a more informed decision about the IPO investment.

• Even if you do not invest in an IPO right away, you can track the developments of the upcoming IPO. This will help you understand the sentiment in the market about IPO and their sectors in general. It will add to your understanding of the capital markets as a whole and help you time your investments in general.

Who Can Invest in an IPO?

The Securities and Exchange Board of India (SEBI) allows 4 categories of investors to bid for shares during an IPO process:

1. Qualified institutional investors (QIIs): QIIs include commercial banks, public institutions, mutual funds, and foreign portfolio investors registered with SEBI. SEBI regulations require that institutional investors sign a contract that locks them in the IPO for 90 days. This is done to keep volatility to a minimum throughout the IPO process.

2. Anchor investors: QIIs who apply for the IPO and have assets worth more than ₹10 crores are considered anchor investors. They are allowed to purchase up to 60% of the shares reserved for the QIIs.

3. Retail investors: Retail investors can invest up to ₹2 lakh in each new IPO. Companies must allocate at least 35% of the issue for retail investors under a quota. SEBI has also mandated that if the offer is oversubscribed, all retail investors are to be issued at least 1 lot of shares. If it is impractical to distribute one lot per investor, a lottery system will allocate the IPO shares to the general public.

4. High-net-worth individuals (HNIs) or non-institutional investors (NIIs): The investor is automatically categorised as an HNI if they opt to invest between ₹2 lakhs to ₹5 lakh investment in the IPO. On the other hand, non-institutional investors are institutions that seek to invest more than ₹2 lakh. The difference between a QII and an NII is that the NIIs are not required to be registered with the SEBI.

How to Apply for IPO?

1. Log in to the Angel One app or website and navigate to the 'IPO' section on the homepage.

2. Choose the IPO you want to invest in from the available list.

3. Review all the important IPO details, such as the maximum number of shares, investment limits, and company information.

4. Click on ‘Apply Now’, then enter the number of lots, your bid price, and your UPI ID.

5. Confirm your application and approve the payment request sent to your UPI app to finalise the IPO application process.

What is the Process of Investing in an IPO Online?

The process of investing in an IPO is a simple one. Follow these simple steps to invest in an IPO via the Angel One app:

1. Login to your Angel One account and go to the IPO section from the Home page. After due diligence, select the IPO you want to invest in under ‘Open & Upcoming’ IPO.

2. Click on ‘APPLY NOW’ to begin the process of investment.

3. Enter the number of lots, the bidding price (in case of a book building issue), and your UPI ID.

4. Click on ‘APPLY FOR IPO’ and confirm your bid.

5. Accept the payment mandate request sent to your UPI ID to block the necessary funds. Your IPO investment process is now complete!

You can also apply for an IPO directly from your bank account via ASBA (Application Supported by Blocked Amount) as long as your account has a sufficient balance. 

Although your application is submitted, you may not receive the number of shares that you applied for. The following are the reasons why that might happen - 

1. Oversubscription of the IPO - If the number of shares demanded exceeds the number of shares offered to the public in the IPO, the company may choose to distribute the available shares on a pro-rata basis.

2. Rejection of your application - Your application for IPO might be rejected if you had entered incomplete or incorrect information or you did not have adequate funds, etc. In that case your money will not be spent and you will not get any shares.

Pre-requisites for Applying for an IPO

The following are the requirements for applying for an IPO in India:

1. You must be an Indian citizen.

2. PAN card 

3. Demat account

You may not need a trading account to apply for an IPO, but you may need it to sell your holdings once the IPO shares are delivered to your account. 

It is also advised that you research the companies whose IPO you want to invest in. Without due diligence, you should not be committing a large sum of money.

How to Increase Your Chances of IPO Allotment?

You can take the following steps to increase your chances of allocation:

• Apply from multiple demat accounts.

• If there is a price band, then try bidding at the highest price.

• Make sure you apply on time i.e. before 5 PM of the final day.

• If the company going public has a parent company, you can invest in the parent company and then apply through the ‘Shareholder’ category. Then, your chances of allocation will increase.