What to Expect from Upcoming IPOs in the Next Quarter

09 January 2025

The Indian IPO market is expected to heat up again in the next quarter. With the economy steadying and market sentiments improving, many companies are lining up their initial public offerings (IPOs) in the coming months. As an investor, especially a retail investor, upcoming IPOs present an interesting opportunity to allocate a portion of the portfolio to high-growth businesses early.

However, not all IPOs are created equal. With so many companies hitting the primary market, how do you separate the wheat from the chaff? Which IPOs should one apply for, and what factors should be considered before investing?

This blog post discusses what investors can expect from IPOs in the next quarter and provides a framework for analyzing and shortlisting the best upcoming IPOs for your portfolio.

Strong IPO Pipeline

Investment bankers have a strong pipeline of companies planning to launch their IPOs soon. These include prominent startups from e-commerce, fintech, FMCG, and technology sectors. Some of the major upcoming IPOs to watch out for include the following:

Ather Energy: Ather Energy has recently received approval from the capital markets regulator to float its initial public offer. The e-mobility unicorn plans to raise Rs 3,100 crore through its maiden share sale.

Oswal Pumps: The IPO can supposedly have mixed fresh issues of equity shares that are worth 1000 crore INR. Also, the offer-for-sale (OFS) of close to 11.3 m equity shares will be made available by promoter Vivek Gupta.

Schloss Bangalore: The parent company of Leela Hotel Chains, Schloss Bangalore, is also planning to offer a mix of the latest issue of equity shares (worth 3000 core INR) and the OFS of stocks, which cost around INR 2000 by Project Ballet Bangalore Holdings.

iValue Infosolutions: iValue Infosolutions offers various digital services like security analytics and network security. It doesn’t have any listed peers on the Indian stock exchanges. The IPO is expected to have only OFS components with 18.7 m equity shares but no fresh issue components with it.

Factors to Consider Before Investing in Upcoming IPOs

The fast-growing Indian startup ecosystem provides immense potential for wealth creation. It is, however, crucial to remember that IPO investments usually carry higher risks than investing in established entities. An investor must assess multiple aspects of the issue to make informed decisions. Here are some key factors to evaluate:

Business Model and Market Opportunity

Study the company’s business model, target market, and future growth drivers to gauge the strength of the underlying business. Analyse if the company operates in a large addressable market and if tailwinds exist for long-term growth. For example, the rise of online spending presents a huge opportunity for e-commerce and fintech players.

Financial Health

Review key financial metrics like revenue growth, profitability, cash flows, operating leverage, and capital efficiency to assess the business’s financial health. It is better to prefer companies with a proven track record of predictable and profitable growth.

Valuations

Valuations play a critical role in IPO investing. It is crucial to compare the company’s earnings and price-to-sales multiples with listed industry peers to determine if the IPO is reasonably priced or overvalued. It is important to note that tech IPOs in the recent past have commanded higher valuations due to high growth potential.

Competitive Advantage

It is crucial to understand the company’s competitive positioning and moats, such as network effects, branding, or superior technology, that make its business difficult to replicate. Durable competitive advantages suggest that the company can maintain growth and profitability.

Risk Factors

Carefully read the prospectus’s list of risk factors, including operational, financial, compliance, and external risks. Evaluate whether the company has concrete plans to mitigate these risks.

Purpose and Use of IPO Proceeds

Analyse how the company plans to use the IPO funds. It can be beneficial to look for companies that utilize capital for productive purposes, such as expanding capacity, clearing debt, or gaining strategic capabilities via acquisitions, rather than just providing an exit route for investors.

Promoter Credibility and Skin in the Game

The credibility of the promoters or founders and their commitment to the business matter a lot. This is usually reflected in the portion of ownership they plan to retain post-IPO. Founders with enough skin tend to take a long-term view of steering the company.

Tips for Retail Investors Applying in IPOs

Here are some handy tips for retail investors to increase the probability of getting an IPO allotment:

Open a demat account with a bank or broker that has a higher allocation in public issues. This can help increase one’s chances of allotment.
Ensure sufficient funds are in the bank account linked to the demat account 2-3 days before the IPO opens. These funds will be blocked once one applies for the IPO.
Focus on IPOs with larger offer sizes and avoid oversubscribed issues.

Leverage UPI to apply as it typically has a higher allocation reserved for retail investors.
Fill in the bid details carefully, and do not submit duplicate requests from the same account.

Conclusion

The IPO frenzy is expected to continue in the next quarter. For investors willing to stomach the risk, upcoming IPOs offer an opportunity to allocate a small portion of capital to new-age businesses that could create substantial wealth over long periods. Doing the homework, thoroughly evaluating company fundamentals and valuations, and investing discipline usually helps.

Frequently Asked Questions

Following are some common questions investors and traders may have about the upcoming IPOs.

Q1: What are the key factors one can expect to influence IPO performance in the next quarter?

Ans: The performance of IPOs that hit the markets in the next quarter can be expected to depend on several interlinked factors. These include prevailing market conditions, industry trends, company fundamentals, geopolitical events, and overall investor sentiment. Strong economic performance and growth outlook have historically supported higher IPO activity and valuations.

Q2: How can investors identify promising IPOs in the upcoming quarter?

Ans: Choosing the right IPOs to invest in requires rigorous due diligence by investors. Critical aspects like the company’s financial health, growth levers, business model, competition dynamics, industry outlook, and the strength of the management team must be evaluated. Reading the IPO prospectus and analyst reports can help provide valuable perspectives.

Q3: Which industries will likely dominate the IPO market next quarter?

Ans: Private enterprises from high-growth sectors like technology, healthcare, and green energy can expect to drive IPO volumes in the next quarter. Companies with strong innovation pipelines and a strategy to capitalize on current market conditions will likely draw significant interest.

Q4: What risks should investors consider before investing in upcoming IPOs?

Ans: While upcoming IPOs are expected to provide exciting investment opportunities, they also carry their share of uncertainty and risks that investors should be aware of. These include prevalent market volatility, chances of overvaluation, lock-in periods, and lack of historical performance data, in addition to the industry-specific and macroeconomic risks.

Q5: Are there specific IPOs generating high interest for the next quarter?

Ans: Among the upcoming IPOs, companies with strong brand recognition, unique and innovative offerings, established track records, or those operating in areas with massive growth runways can be expected to generate the most investor interest. Tracking financial media coverage and reports prepared by financial analysts can help highlight the important aspects of upcoming IPOs.

Q6: How can retail investors participate in upcoming IPOs?

Ans: Retail investors should open a Demat account with a leading bank or brokerage firm to access upcoming IPO allotments. They must thoroughly understand the IPO allocation process, categories, and minimum investment thresholds applicable to retail investors.

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Soumava Goswami

A passionate writer and an avid reader, Soumava is academically inclined and loves writing on topics requiring deep research. Having 3+ years of experience, Soumava also loves writing blogs in other domains, including digital marketing, business, technology, travel, and sports.

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Job Security In The Age Of Automation: What To Expect

Automation has been a source of concern for centuries. Starting from the 16th-century mechanization of stockings production to the 19th-century industrial revolution that led to the UK’s textile riots. From the late 20th-century automation of car manufacturing to the 21st century, worries that Artificial Intelligence will eventually take up our jobs. Job security is an issue that brings forth conflict among manual laborers, resulting from the automation of repetitive manual tasks. Automation has replaced many jobs over the years but has also given rise to other specializations in industries. Major manufacturers have employed robots to level with consumer demands. This is because they are efficient and fast in task completion. All the while playing a massive role in keeping these businesses highly competitive. To provide a clear understanding of the impact automation has had in industries, let’s dive deeper into the jobs’ technicalities. Automation By Job Type Robots execute blue-collar jobs faster and more efficiently than the human workforce, an effect that has highly optimized the production process. However, jobs requiring intuition and creativity, such as product design, and artistry require empathy, making them reserved for the human workforce. The human workforce also retains jobs that appreciate soft skills, such as effective communication, collaboration, leadership, and a problem-solving mindset. That being an overview of the automation effect, let’s dive deeper into factory-related jobs and how automation has affected them. Creative Jobs These jobs require a human eye and mind and combine procedural tasking with intuition in their execution. While proper product design does require a certain level of technical know-how, it also asks for a deeper understanding of why people like the look and feel of these products. In manufacturing industries, designing products may require a focus on the technical application of the product and cater to these matters. An API valve manufacturer, for example, may decide to automate the production of the product. However, to tailor for customers that care for factory aesthetics, they require a human understanding of the design process. Automation can play a role in tasks such as drawing, 3D printing, and data analysis. These artistic job descriptions probably have a higher sense of security than others. Technical Jobs Following product design is the manufacturing process involving technical activities such as assembling parts to come up with a wholesome product. A car manufacturing factory may implement robotic arms, each responsible for joining parts of a vehicle together, working with more efficiency and speed than a human. After putting together the product, there is a proper packaging requirement in preparation for shipping. A robot performs packaging tasks as they are repetitive and technical. The packaging process does not engage in human creativity; thus, automation is probably the better option for such work. However, in other industries such as food processing, products’ packaging may require customization. A process requiring making phone calls, listening to ideas, and making constant changes to the product’s packaging. We employ automation for the job’s technical and repetitive parts; however, to understand human needs, a human being is needed. Transportation of the products to the expected locations is the final process in manufacturing. We can automate the package addressing systems in preparation for transport. Soon, however, there is a possibility that autonomous vehicles will replace transport drivers. Currently, smaller package delivery companies employ drones in some parts of the world. Leadership And Collaborative Jobs Top managerial job descriptions have the least possibility of automation because they require effective coordination, communication, and decision-making. These professionals employ a combination of technical know-how, emotional intelligence, and in some, risk-taking– we cannot reach a balance through automation. Automation cannot replace these individuals, partially because they might resist losing their jobs since they decide which tasks to automate and which not to automate. The Solution To The Conflict The fear that automation will eventually take up all jobs exists. To keep the conversation healthy, positive, and practical, we need to educate the masses on what automation means. Including the types of jobs it can take over. The first step towards education is learning, learning fear, and learning communication strategies. Understanding communication techniques will ensure that proper education occurs. The second step is the actual training of professionals. This involves educating employees in preparation for the jobs they are to transition to during automation. However, it is essential to note that automating the training process might result in a larger conflict. Partially because we know that resolutions cannot be sufficient when executed by who causes the conflict. The third step is to ensure regular training occurs by providing relevant and up-to-date information and training materials. At first, individuals will be reluctant to change job descriptions, which we can resolve through the previously discussed process. Factory Jobs That Cannot Be Replaced Although automation has taken over many factory jobs, some still require human beings' special skills. Here are a few such jobs that machines can’t completely do for now. Quality Check Inspector Robots can be programmed to do certain things, but when it comes to catching a small defect or making sure that the product is of the quality you’re looking for, people are much better at it. A quality control inspector uses their experience, intuition and good old fashion “look closely” to make sure that every single product is perfect. A machine can see if there is clearly something wrong with a product but won’t catch everything. If you had automated inspections in place, and you were shipping out luxury products; and something goes wrong. This is where human intervention becomes important. Let’s say there was hardly a speck of dust on your pet hair remover (obviously checked by a robot). Then, suddenly, there was one review on Amazon where someone said they found one pet hair caught in it. You’d lose all your sales because everyone would assume that now your inspection isn’t working as well as humanly possible or you just don’t care about quality anymore. This is where you should always hire a human inspector. Maintenance Technicians Robots can’t fix themselves, at least not yet! Factory machinery requires regular maintenance to function at peak performance. Maintenance technicians are skilled professionals who ensure that machines run smoothly. When something breaks down, these technicians troubleshoot the problem, perform repairs, and get everything up and running again. Automation can monitor equipment. If you want to know what is wrong with it, often, you need to use human creativity and problem-solving skills, which require knowledge that only a human has. Until robots can physically fix something, if they determine a problem, humans will always be required. Health and Safety Officers It is the most important job to ensure that employees are safe in factories. A person could develop an allergy or get their hand crushed by a machine. The fact that machines of such high risk can be worked on by robots does not mean human judgment about the needs of other humans will disappear. Custom Design And Prototyping Repetitive tasks can be automated, but human creativity is necessary for custom design and prototyping. Factories producing one-off products or prototypes on a small scale will require workers who can conceptualize and modify designs manually. This is to produce the desired result each time. As automation advances it becomes apparent that there are some jobs for which relying on human creativity, problem solving, or emotional intelligence is necessary. Therefore, as machines replace the mundane, humans will remain an integral part of factory life. Should You Be Worried? Automation and job security have been and will always conflict. However, a balance is struck each time it has happened. We currently live in a world with fear of automation from watching various films, such as The Terminator, the Transformers, and others. Some still expect to see a world like that in the movies. The reality is that we use robots to perform repetitive tasks that we have complained about for ages. Do not be fearful; instead, educate yourselves on automation. Do this with a keen eye on the jobs that seem impossible to automate. All the best. Read Also: 3 Encryption Trends and How They Make Communication More Secure Why Sensors are Essential in Machine Automation Seven Great Reasons to Use a Car Transportation Company

Addressing Supply Chain Challenges For Medical Consumables In Developing Countries Through Precision Injection Molding

This article explores the significance of precision injection molding in addressing supply chain challenges for medical consumables in developing countries. With a focus on the capabilities of plastic injection molding companies, we highlight how precision injection molding empowers these nations to overcome barriers and ensure the timely availability of essential medical supplies. Precision Injection Molding: Transforming Supply Chain Efficiency Precision injection molding, a state-of-the-art manufacturing process, plays a vital role in improving supply chain efficiency for medical consumables in developing countries. By leveraging advanced technologies and techniques, plastic injection molding companies can produce high-quality and customized medical supplies with precision, consistency, and speed. Empowering Local Production and Accessibility The adoption of precision injection molding enables developing countries to set up local production facilities for medical consumables. This strategic shift reduces dependence on imports, ensures a steady supply of essential items, and significantly shortens delivery times, particularly in emergency situations. Plastic injection molding companies collaborate with local partners, sharing expertise and providing access to cutting-edge machinery and molds to boost local production capabilities. Enhancing Quality Control and Safety Standards Precision injection molding technology offers unprecedented control over the production process, enabling strict adherence to quality control and safety standards. This ensures that medical consumables manufactured in developing countries meet international regulations and guidelines. With plastic injection molding companies providing the necessary know-how, developing nations can effectively address concerns related to inferior or counterfeit products, enhancing patient safety and improving healthcare outcomes. Cost-Effectiveness and Sustainable Manufacturing Precision injection molding presents a cost-effective solution for medical consumables in developing countries. By leveraging economies of scale and local production, manufacturing costs can be significantly reduced, leading to affordable prices for essential medical supplies. Moreover, precision injection molding allows for the use of recyclable and sustainable materials, promoting environmental responsibility and sustainability in the healthcare sector. Promoting Local Job Opportunities and Economic Growth The establishment of local precision injection molding facilities in developing countries offers economic opportunities by creating jobs and boosting the domestic economy. Plastic injection molding companies, alongside government and industry collaborations, help train local talent, providing technical expertise and assistance in establishing high-quality manufacturing practices. This enhances the skill set of the local workforce, driving economic growth and promoting the long-term sustainability of the healthcare sector. The Road Ahead: Overcoming Challenges and Building Resilience While precision injection molding presents numerous advantages, specific challenges must be addressed to ensure its effective implementation in developing countries. These challenges include limited access to advanced technology, lack of infrastructure, and the need for significant investment. However, by fostering international partnerships, knowledge sharing, and targeted investments, plastic injection molding companies and relevant stakeholders can collectively build resilient supply chains that meet the medical consumables needs of developing nations. Conclusion Precision injection moulding has the potential to revolutionize the supply chain for medical consumables in developing countries. By enabling local production, enhancing quality control, promoting cost-effectiveness, and creating job opportunities, plastic injection molding company are instrumental in overcoming supply chain challenges and improving healthcare delivery. With ongoing support, collaboration, and investment, precision injection molding can pave the way for enhanced accessibility, affordability, and sustainability of medical consumables in developing nations, ensuring improved healthcare outcomes for all. Read Also: Tips For Protecting Your Overseas Shipments Role of supply chain management in business Simplify Parts Pricing With A Comprehensive Solution

10 Waste Management Tips For Every Business

A lot of businesses are aware that they need to take care of their waste, but it can be difficult to get started. Here are 10 tips for managing your business' waste. 1. Start With A Strategy A strategy is a plan for the future. It's the process of defining what you want to achieve and how you'll go about it. For example, if your business is a retail store, you might want to increase sales by 10% over the next year. Then, you'd create an action plan that includes how many new products or services you'll offer and what marketing techniques will be used to attract more customers. You can't just decide on a goal without having some idea of how you're going to get there (and whether or not it's even feasible). When developing your waste management strategy, it's important to consider: Your budget and resources The current state of waste management at your company Potential opportunities and challenges 2. Educate Your Employees About Waste Management Make sure you dispose of your waste correctly. If you are unsure of how to do this, or if you want to find out which method is best for your business, speak with an expert on waste management services on how to; Educate your employees. Teach them how to recycle and dispose of waste properly. Make them aware of what not to put in the garbage, such as old batteries and electronics. 3. Reduce Paper Waste You already know how wasteful paper can be. Use it for something important and the rest of your documents can go the way of digital storage. If you have documents that need to be printed, switch to recycled paper to reduce costs and waste. Then, think about using email instead of printing out emails with attachments or sending faxes to clients. There are also more efficient ways to store your documents than storing them on paper—scanning important files into a cloud-based system is an excellent alternative that will cut down on clutter and save you money! 4. Do A Waste Audit A waste audit can be a great way to get your business on the right track when it comes to reducing and recycling. It's a simple process, but it must be done regularly. You will need to identify what types of waste are being generated by your business, how much of each type is being produced, and where they are going after they have been discarded. The goal should be to understand what types of materials are being thrown away so that you can work with employees or partners to find ways around them (or eliminate them). Outsourcing waste management services is also a great way to save time and money. You can outsource the waste management of your business to a professional company that has experience in this area, or you can hire a colleague who has experience with waste management and ask them if they are willing to help you out. 5. Compromise On Cleaning Products For Waste Management You will find that it is not necessary to use toxic chemicals and harsh cleaning products. Instead, you can opt for environmentally-friendly alternatives that are just as effective in maintaining the cleanliness of your business. For example, if you need a surface cleaner or disinfectant that will keep your office equipment free of germs and bacteria, look for an option that does not contain chlorine bleach (which has been linked to cancer and other health problems). Instead, choose something like "green" cleaners that have been specifically designed to be more environmentally friendly without sacrificing effectiveness. 6. Get Creative With Containers As you are trying to figure out how to dispose of your business’s waste, it is important to keep in mind that the most important thing is not what kind of container you use, but rather how easy it will be for your employees to carry around your business’s waste. If you have a lot of waste and it is going to be hard for employees to carry around containers full of garbage, then there are many more eco-friendly options available for businesses like yours than if there was just one kind of container at hand. Another thing worth considering when choosing which type of receptacle or bin will work best for storing all that trash is whether or not reusable materials would work better than disposable ones. For example: If possible (and legal), consider using traditional wooden crates instead of plastic ones because they are reusable and biodegradable! This can also help save money since these types 7. Rethink Your Water System In addition to recycling and reusing, you can also start thinking about your water system. The average American household uses 300 gallons of water per day. That’s a lot! Fortunately, there are several ways you can reduce your water use and help the environment in the process: More efficient use of fixtures. These include solid-surface counters, low-flow showerheads, and faucet aerators. Install rainwater harvesting systems on roofs of commercial buildings or at home (if possible). Rainwater is collected for future use as drinking water, lawn irrigation, or toilet flushing. Use greywater systems in homes where it is allowed by law; these systems recycle wastewater from sinks and showers for irrigation purposes. Get a meter installed on your building's existing plumbing system so you know how much water you're using on an ongoing basis. 8. Recycle Your Electronics Recycle your electronics. Electronic waste is a growing problem, and not only because it contains toxic materials that can harm our environment. The oil and other materials used to make electronic devices are becoming increasingly scarce, which means that recycling electronics is good for the planet. You should always recycle old cell phones or computers at an e-waste recycling center—if you throw them away, they could end up in landfills where they will take years to decompose and release harmful chemicals into the earth's soil and water supply. 9. Consider Food Waste Food waste is a major problem for all businesses, particularly the hospitality and food service industry. Estimates show that the average hotel loses 18% of its room nights due to guests not showing up; this means they're paying for rooms they aren't using—and that's on top of the cost of cleaning and preparing those rooms (which can range from $10–$100 per night). According to an expert in waste oil disposal in Liverpool, buffet restaurants often lose between 30% and 50% of their prepared food due to spoilage or over-ordering. Your company may also be losing money by taking care of its garbage cans improperly: if staff members don't line them with bags or otherwise protect them from water damage, you could end up having to buy new ones every few weeks at a cost that would add up quickly over time! 10. Beware Of Hazardous Waste Hazardous waste is a particular kind of waste that has special disposal requirements. It’s important to know what hazardous waste is and how to identify it because if you don’t dispose of your hazardous waste properly with toxic waste collection services, it can be costly and even dangerous for the environment. Hazardous wastes are those that meet any of these descriptions: Corrosives: substances that burn or destroy living tissue on contact with skin or eyes, like sulfuric acid (pH 1) and sodium hydroxide (pH 14) Ignitable: easily ignited by heat, flame, sparks, or another source at room temperature; includes liquids with flashpoints below 60° F/16° C and solids such as coal dust in air-contaminated dust with ignition temperatures below 130° F/54° C Conclusion - Waste Management Tips So, there you have it! A few simple steps can make a big difference to your business. We know that waste management is not always at the top of everyone’s priority list when they run their business, but it should be. The good news is that our tips will not only help with your waste but also save you money in other areas too! Read Also: Basic Small Business Tips for Noobs Who Want to Start a Venture How A Business Loan Helps Business People In 2023 How To Market A Small Business In A Big City

What to Expect from Upcoming IPOs in the Next Quarter

Strong IPO Pipeline