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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