Upcoming IPOs

- It is a good hedging mechanism. In India, interest rates are high due to high inflation. However, at some stage, they could go down too. It may be a good idea to protect your borrowing costs against future movements in interest rates.

- There is no Securities Transaction Tax (STT). This makes hedging a reasonably efficient process.

- The real-time dissemination of prices means there is greater transparency in trading.

- Initial Public offering is an excellent source of income for a company that helps in its expansion. If you are an informed investor where you are aware of the fundamentals of the company, then investing in IPO would be a great opportunity for you.

- With the few easy steps and with multiple payment methods you can easily apply for the IPOs. 

There are two types of IPOs - Book building IPO and Fixed price issue. Investors participating in Fixed price issue, must ensure that, when making the application, they pay the full price of the shares. A book-building issue is a comparatively new notion in India. There is no fixed price, but a price band or range. The lowest and highest price is referred to as 'floor price' and 'cap price'. You should bid for the shares you would like to pay at the desired amount. After reviewing the bids, the price of the stock is then set. After each day, when the book is constructed, the demand for the share is known.

Although an initial public offering (IPO) is the first time the public can acquire shares in a company, it's crucial to remember that one of the aims of an IPO is to allow early investors in the company to cash out their assets.

Consider an IPO to represent the conclusion of one stage in a company's life cycle and the commencement of another—many of the initial investors want to cash out on a new venture or start-up. Investors in more established private companies that are going public, on the other hand, may prefer the option to sell some or all their shares.