MSME IPO | IPO in India | Valuqocapital
The market's relevance returned in 2015 after a protracted absence. INR 60 crores were raised through public equity and the money is still increasing.
There has always been a drastic increase in the market when you consider raising money through MSME IPO. Since 2014 there's been an increase of 844% and the trend continued till 2016.
If we look through the statistics, we find that 20 firms are awaiting fundraising of 7,000+ crores and 11 companies are awaiting fundraising of 5000+ crores following SEBI approval.
While investing in an IPO, there are some considerations you should make.
Get thorough with the company profile
Before applying, thoroughly review the issue's prospectus.
Check if there's any material litigation against the promoter of the company
Always avoid repeat offenders.
Prepare the documentation in advance.
Get the IPO application from any broker's office
Payment is made through a cheque
The form is collected by agents of merchant bankers or collecting bankers
watch out for the oversubscription
Every IPO has a pre-defined and limited set of shares allocated proportionately to each investor.
There can be a situation when the demand for a particular IPO in India is high and this means that the application exceeds the listed shares, so shares are allotted proportionately.
IPO Valuation
The process is biased as investment bankers assume the quality and management of IPO before the final offer
Comparing the valuation of the Indian MSME IPO to its listed peers on the secondary market
In addition, there are alternative methods, including return on equity, price-earnings, and VC Funding price-to-book ratios.
This article is a complete guide for you while investing in IPO. Contact our team at info@valuqocapital.com for more details related IPO launch.
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