What are upcoming IPOs and how do you evaluate them before applying?
Author : Sarah Jones | Published On : 16 Jun 2026
Finding upcoming IPOs is the easy part. NSE, BSE, SEBI filings, and most broker platforms publish the pipeline well in advance. The harder question is which ones are worth your capital. Before you apply for any public issue, there are three areas worth examining: valuation, financial health, and market demand.
Valuation and pricing
Start with the price band. Compare the company's Price-to-Earnings ratio against listed peers in the same sector. A significantly lower P/E relative to competitors can indicate a reasonably priced issue, though it warrants deeper scrutiny rather than automatic confidence.
Check whether the issue is a fresh issue, an offer for sale (OFS), or a combination of both. In a fresh issue, the capital raised goes directly to the company to fund growth, expansion, or debt reduction. In an OFS, existing shareholders are selling their stake, and the company receives nothing. A predominantly OFS structure is worth noting, as it signals early investors exiting rather than the business raising growth capital.
Grey market premium (GMP) reflects informal demand before the issue opens. A consistently positive GMP suggests strong investor appetite, though it is an informal indicator and should not be the sole basis for a decision.
Financial and business health
Pull the Draft Red Herring Prospectus from SEBI's website. Look for consistent revenue and net profit growth over at least three years. A single strong year ahead of listing is less compelling than a steady upward trend. Check the debt-to-equity ratio and return on equity alongside profit margins to build a picture of financial discipline.
Read the Objects of the Issue carefully. This section states exactly how the company plans to use the money it raises. Companies using IPO proceeds primarily to retire existing debt rather than fund business growth deserve additional scrutiny.
Market demand and subscription signals
Once an issue opens, monitor the live subscription data on NSE or BSE. Pay particular attention to the Qualified Institutional Buyer (QIB) category. High QIB subscription rates indicate that mutual funds, foreign institutional investors, and other institutional participants have evaluated the company and chosen to participate. Overall oversubscription levels above 50 to 60 times generally point to strong listing day demand, though high subscription does not guarantee allotment or post-listing performance.
Where to track and apply
The IPO section on your broker's platform consolidates open and upcoming issues, subscription status, and allotment timelines in one place. For raw prospectus data, go directly to SEBI or the exchange websites. Cross-referencing both gives you the clearest picture before committing capital.
No single metric determines whether an IPO is worth applying for. The strongest applications are built on a combination of sound valuation, demonstrated financial performance, credible use of proceeds, and visible institutional interest.
