Why invest in IPO and It's Benefits

IPO investment in India

Setting up a brand is critical and involves building trust that attracts the right investors, marketing and sales heads, etc. If a brand is successful in the market, your customers plan to invest, and here comes IPOs. 

What is an IPO?

An initial public offering (IPO) refers to shares of a private company offered to the public in a new stock issuance. It allows a private company to raise capital from public investors. IPO is a fundraising method used by large companies, in which the company sells its shares to the public for the first time. There has been an increased demand for IPO investment in India. Those who are interested in investing can do so through their brokerage firm. Another option can be to invest through a mutual fund or another investment vehicle that focuses on IPOs. 

When the market situation improves, many companies come out with their IPOs. The question that arises here is the reason for investing in an IPO. So we have briefed the benefits of IPO investment in India:

Get in on the action early.

By IPO investment in India, you can enter the foundation of a company with high growth potential. It can be your door to earn profits in a short period and grow your wealth in the long run. 

Meet long-term goals

IPO investments are also known as equity investments, and they have the potential to bring higher returns in the long term. 

More price transparency

The price per security issued is mentioned in the IPO order document. So, you have complete access to the information as an investor.

Buy cheap shares and earn big.

The IPO share price is comparatively the lowest if you invest in a small company, and it is because the company may offer shares at a discounted rate but will yield higher returns.

So these were the fantastic benefits that answer why to invest in IPOs. We have listed some companies expected to come with their IPOs in 2022. So if you're planning for IPO investment in India this year, here are the best IPO options. 

• LIC IPO: LIC, the government-controlled entity, decided to go public, i.e., list on the stock exchange. The government offers 31.62 crores shares or 5% equity in the IPO. The government has come out with an IPO and lists of shares. 

• Oyo IPO: Oyo Hotels, the parent company of hotel-booking startup Oyo, filed a draft document with SEBI to raise Rs 8,430 crore through an initial public offering (IPO). The IPO this year will comprise a fresh issue of equity shares aggregating up to Rs 7,000 crore and an offer for sale to the tune of Rs 1,430 crore. 

• PharmEasy IPO: PharmEasy, one of the best health services providers in India plans to raise Rs 6,250 crore in fresh equity shares this year.

• Ola IPO: Ola is a cab-providing service launched in 2010, competing with Uber on the global markets. Ola has raised about $4 billion initially, and IPO is likely to look for valuations of $8-9 billion this year. This IPO is expected to be around Rs 15000 crore in 2022.

• BYJU'S IPO: BYJU'S is the leading education provider online, and the app focuses on the students from class 4 to class 12. It is expected that Byju's will raise around Rs 4500 crore through its IPO. So you can now invest in an IPO. 

• Delhivery IPO: Delhivery is one of India's largest and fastest-growing fully integrated logistics services players. It is expected to raise Rs 5,000 crore, while it will have is going to offer for sale (OFS) component of Rs 2,460 crore this year.

• Go Airlines IPO: GoAir is one of the fastest-growing airlines in India. It is expected to raise Rs 3,600 crores fresh equity shares. 

Before investing in an IPO in India, you need to compare the best IPOs wisely. If you want to compare them in all aspects, you can also take the help of LKP Securities. LKP Securities will help you reach the best IPOs with all pointers and possibilities and help you with the right way of investing.