Top Launches as IPO and FPO in the Coming Financial Year| Espresso

Top Launches as IPO and FPO in the Coming Financial Year

Traders worldwide wish to have maximum returns for their investments for minimum associated risk. Regular trading in general financial instruments and derivatives can offer limited returns. Do you wish to trade with instruments offering exponential returns? You should try IPO and FPO.

Published on 26 June 2024

Trading in either enables traders to harness the utmost trading potential and delivers the best possible outcomes. However, traders must be additionally diligent when placing their trades in IPOs. Any mistake in the calculation may cause adverse outcomes. You should have a nuanced fundamental understanding of IPOs and FPOs and their various facets. Let us explore the labyrinth of IPOs and FPOs and top launches with high trading potential.

What are IPOs and FPOs?

IPO, the abbreviation for Initial Public Offering, allows a company to make the shares public and available for trade in the stock market. With the same, traders access the shares of an esteemed organization for the first instance. There are several reasons why a company may go public it could be to minimize the debt, to increase capital for myriad corporate endeavors, or for other financial reasons. IPOs are launched in the primary market. Whatever the motivation or underlying reason behind IPOs, it is a perfect opportunity to place trades in the associated stocks. The IPO launches offer traders and investors with enhanced liquidity, providing them a perfect opportunity to implement their long-term and short-term trading strategies. All such things make IPO a compelling case, but traders must place their bids in IPOs after a thorough consideration.

Another related thing you may encounter while navigating your way with your stock market investment app is FPO. FPO is a Follow-on Public Offer. Unlike IPO, a company whose shares are already trading in the secondary market launches FPO to raise capital. If the company is fundamentally stable, FPO investments offer an upper hand to traders and investors.

Benefits of Investing in IPO and FPO

The following are some advantages that traders prefer to invest in IPOs and FPOs using top stock market apps:-

  • High Returns: Traders and investors receive the opportunity to earn higher returns by placing their trades in IPOs. Yes, IPOs offer traders an upper hand by allowing them to have shares at relatively low prices. Since 2006, 25.05% have appreciated between 0-100%. There are also instances when traders have received double returns on investment on the same day of the launch.
  • Access to Promising Companies: Trading with IPOs fosters traders and investors access to shares of reputed companies at a relatively nominal price. Traders can do their bidding to gain access. With the same, they increase the likelihood of having a favorable financial outcome.
  • Increased Liquidity: Traders and investors encounter a rush when IPO opens, and it gives them the ease to implement their bullish or bearish trading strategies. The increased liquidity also decreases the susceptibility to adverse financial outcomes and allows traders to make an effortless exit.
  • Diversified Trading Portfolio: Traders can place their trades in multiple companies when investing in IPOs. It delivers absolute value for their investment and makes things more efficient for them.

Coming IPOs and FPOs With High Potential

Traders need to invest in IPOs that are fundamentally stable. It allows them to have the benefits of IPO/FPO investments. Some of the IPOs with the highest trading potential are:-

  • Swiggy Ltd: It raised the issue on April 30, 2024, and intends to raise a capital of 8000 cr. The inclination of the market can take an adverse or favorable turn, and the IPO may be over or undersubscribed, depending on the situation and various factors. However, the approval for the launch is pending from SEBI.
  • Bajaj Housing Finance: It filed on June 8, 2024, and intends to raise a high-end capital of 7000 cr.  
  • Afcons Infrastructure Ltd: It filed on April 2, 2024, and its approval is pending. The company estimated the issue to raise a capital of 7000 cr.
  • Ola Electric Mobility Ltd: It filed for approval on 26 December 2023, and SEBI is still monitoring to finalize the approval. The company estimates the issue size to expand by 5500 crore.

Concluding Remarks

IPOs are the most suitable opportunities for traders and investors to maximize their capital by investing from scratch. Traders need to be additionally careful while investing in an IPO and must monitor the crowd sentiment to avoid further issues. Several launches are in process that will deliver the best investment opportunity to traders and investors. 

Chandresh Khona
Team Espresso

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