Many IPOs will hit stock market soon: Why you need to be cautious about investing in these
The stock market is characterised by excesses during bull runs and the primary market is no exception.
Synopsis
There was a significant spurt in IPO collections in 2020-21 the second-highest in the past 10 years. Does this filing rush make the Indian IPO market overheated? This week, let us explore how investors can successfully navigate this imminent flood of IPOs.
The benchmark indices are still below 52-week highs, but retail investor interest in the stock market shows no sign of waning. Companies are cashing in on this increased interest by lining up initial public offerings (IPOs) to raise money. There was a significant spurt in IPO collections in 2020-21 the second-highest in the past 10 years. As the secondary market witnessed a correction on the back of a raging second covid wave, the roll-out of
Many IPOs will hit stock market soon: Why you need to be cautious about investing in these
The stock market is characterised by excesses during bull runs and the primary market is no exception.
Synopsis
There was a significant spurt in IPO collections in 2020-21 the second-highest in the past 10 years. Does this filing rush make the Indian IPO market overheated? This week, let us explore how investors can successfully navigate this imminent flood of IPOs.
The benchmark indices are still below 52-week highs, but retail investor interest in the stock market shows no sign of waning. Companies are cashing in on this increased interest by lining up initial public offerings (IPOs) to raise money. There was a significant spurt in IPO collections in 2020-21 the second-highest in the past 10 years. As the secondary market witnessed a correction on the back of a raging second covid wave, the roll-out of
Timing the IPOs is another important factor. Companies are tempted to often announce IPOs right after strong quarterly results. Investors must be careful not to extrapolate recent performance into perpetuity and pay a high price.
Synopsis
During the year 2020, SPAC or Special Purpose Acquisition Company raised an estimated Rs 6,15,000 crore in the US. Also known as blank cheque companies, SPACs raise money to buy start-ups or invest in existing companies. Here is an explainer about how such companies work.
The year 2020 was extraordinary for IPOs in India, with 14 public issues raising nearly Rs 27,000 crore. It’s a big amount but pales before the estimated Rs 6,15,000 crore ($82 billion) raised by SPACs in the US during that year. A SPAC or a Special Purpose Acquisition Company is created with the sole purpose of raising capital through an IPO in order to deploy the funds in the acquisition or merger with a private company.
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IPO vs NFO: Which is better for investment - Basic difference, risk assessment
Investing in any fund or scheme involves some amount of risk. And when it comes to investing in securities, the risks are very high. But a deep understanding of the fund or scheme could help you minimize the risk and multiple your money many fold. Here we will discuss about two most lucrative investment options  Initial Public Offering (IPO) and New Fund Offering (NFO).
Government and private companies need funds to expand their operations and therefore they turn to public investors to raise funds. There are two common ways a company can collect funds from the public investors. The options are IPO and NFO. It is often noticed that investors get confused between IPOs and NFOs as they presume that both offer similar opportunities for investment because they are primary market offerings. But both are no way similar to each other.