IPO Prospects for 2024: 36 Companies across engineering, finance, and technology await SEBI nod

As 2024 enters the month of June, 36 companies are waiting for the Securities and Exchange Board of India (SEBI) approval to make their Initial Public Offerings (IPOs) available. These companies have filed their Draft Red Herring Prospectuses (DRHPs) with SEBI, an essential part of the IPO process. A DRHP is an initial offer document that discloses detailed company information concerning potential investors, thus guaranteeing transparency and conformation to regulations.

List of Companies

As of 2024, SEBI is currently considering 36 companies waiting for its approval as they proceed with their IPO plans in India. These companies are engaged in a wide range of activities and are therefore ideal for small-scale investors who would like to take part in the stock market.

In 2024, India’s IPO market comprises many different types of companies and sectors. Most IPOs (24 out of 36) combine fresh issues with an offer for sale (OFS) and this enables companies to collect new capital while also diluting some of their shares.

Six companies are solely opting for fresh issues, indicating a focus on capital for business expansion, while three are pursuing only OFS, suggesting a move to reduce promoter stakes. Industries represented include engineering, textiles, infrastructure, finance, retail, technology, and pharmaceuticals, showcasing broad sector interest. Promoter holdings vary widely, from 100% to lower percentages like 34% but most of them are with above 90% stake, influencing investor perceptions.

Following is the list of IPOs waiting for SEBI Approval in 2024

What is a Draft Red Herring Prospectus?

A preliminary registration document known as a Draft Red Herring Prospectus is created by the company together with its underwriters before initiating an IPO process. Information contained in this document is extensive ranging from the company’s business model and financial metrics, competitive advantages as well as risks it is exposed to its management team among other things SEBI examines DRHP thoroughly to ascertain that the provided information is true.

Conclusion

Understanding the significance of the DRHP and the approval process by SEBI is crucial for investors looking to capitalise on IPOs. Investors should keep watch on SEBI’s approval on the above-given companies waiting for IPOs if you do not want to miss the chance of early investment in your favourite company from the above list.