Why are so many companies going public in 2022? Top 10 IPOs that will shock you!

In 2021, 63 Companies had raised ₹119,882 Crores. This year, it is expected that 80+ Companies will raise ₹150,000 + Crores through the Initial Public Offering (IPO).

What exactly is an IPO?

IPO or Initial Public Offering is when for the first time the company stock is available for purchase by the public. Investors usually invest in IPO stock that increases in value and price over time. There are many reasons to consider investing in an IPO but the risks need to be calculated. Investors need to be aware of the advantages and disadvantages involved before investing in IPOs.

Why do so many Indians invest their money in an IPO?

India is a hotspot for global investors since many of the listed IPOs in recent years have reaped the triple-digit annualized profit. One of the reasons for investing in an IPO is that there is often no cost at all to buy IPO shares. This is because underwriters that are responsible for distributing the IPOs do not charge the companies they work with for this service, unlike how the stockbrokers charge fees with stocks. Another benefit for IPO buyers is that they get immediate access to all information available publicly and non-publicly.  

The most popular reason and the most important one why Indians invest in an IPO is because IPO provides investors to get a chance to be at the beginning of the purchase of the stock when the company is still young and budding. As the success of the company increases, so does the investment skyrocket with time. This form of attractive returns has made many Indians invest in IPOs to achieve their financial goals quickly.

Why are so many major companies going public?

Several major companies have gone public to raise funds. 2021 witnessed a surge in IPOs in India and globally. In 2021, there were 2,338 IPO deals that raised $453.3 billion globally. In India, 63 companies mobilized ₹1.19 trillion through IPOs which is four times the amount raised in 2020 that is ₹26,628 crores.  

Companies go public either to raise capital in the wake of losses or to fund business expansion due to increased demand. For example, most tech and delivery start-ups like Paytm, Mobikwik and Zomato go public to raise capital since the demand grows rapidly.

In the next few years, analysts expect over 50 digital tech companies to be listed.

Advantages of IPO

By investing in an IPO you get early access to a growing company with high growth potential. An IPO may be your window to rapid short-term profit. It may also help you generate wealth in the long run. Since IPO investments are equity investments, they have the potential to bring big returns in the long term. You should always keep an eye out for the top 10 best IPOs in India. For example, if you invest in a young company that sells ground-breaking technology and it manages to disrupt the market and rake in profits, you would gain success from it too. Besides, the Indian IPO is growing every year.

There is more price transparency than ever. The price per share is mentioned clearly in the IPO order document. You have access to the same information as the big investors.

This will, of course, change post-IPO. The share prices would fluctuate based on the changing market rates and the best price the stockbroker can offer. The IPO price is often the cheapest since they are sold at discounted prices. If you miss the window, investing in the company may become difficult once the price starts to skyrocket. Let us take Amazon for example. If you had invested $5000 in 1997 when they went public when each share was $18, you would have had $2.5 million by 2018.

Hottest IPOs of 2022

When the situation of the market improves, more companies will be coming with their IPOs. So always have sharp senses towards the best IPOs to buy in India. These are the top 10 best IPOs in India going public for 2022.

Wrapping Up

IPOs don't just help business, they help your investments grow both short-term and long-term. IPOs have woven a pathway to riches in the last few years alone from Amazon, Facebook and DLF. Find out more about the best to buy IPOs in India through 500 per crore.

There is caution to keep in mind that not all IPOs are a pot of gold. It is always logical to do your research and get the facts straight. 500 per crore can help you find the right IPO as your second source of income. Join now by creating your free of charge Demat account with 500 per crore.