Net Pix Shorts IPO Will Hit the Market on 18 November 2020

By Angel Broking | Published on 17th November 2020 | 798

Net Pix Shorts IPO Will Hit the Market on 18 November 2020

Net Pix  Short Digital Media Limited IPO will hit the market on November 18. The initial public offering will launch in BSE SME category for Cash at a Premium of Rs 30 per share.

Net Pix is a new-age digital company

Net Pix Shorts Digital Media Limited prepares short film content for digital media publications. The Mumbai-based technology entertainment firm, incorporated in 2019, has produced and distributed eight short films of 155 minutes of video content through their Youtube channel  Net Pix Shorts.  Apart from that, the firm also created content for OTT platforms like Hungama Play, Sony Liv, Shorts TV, Hotstar, and launched very own music channel, Net Pix Raw.

Highlights of Net Pix Shorts SME IPO

  • Net Pix Shorts Digital Media IPO will open in the SME segment of Bombay Stock Exchange
  • It is essential to note the Net Pix Shorts IPO date which will remain open for subscription from November 18 to 23, if you want to bid for it
  • Each share, carrying a face value of Rs 10, will be available to investors for Rs 30
  • Net Pix aims to issue 900000 shares to raise Rs 270 lakhs from the market which they intend to use in improving the company’s creative infrastructure and digital content library
  • Investors will have to place a minimum bid of 4000 shares and in multiples of minimum bid size thereafter
  • The promoter is planning to reduce ownership size by 30 percent post-IPO
  • Net Pix appointed Aryaman Financial Services limited as lead manager and CAMEO Corporate Services Ltd as the registrar of the issue

Picking The Right IPO Involves Challenge

IPOs or initial public offerings give you a chance to invest in a company’s future and in the way, helping you to diversify a portfolio. But picking the right IPO is quite tricky, chiefly because you have no charts or historical data to base your decision.  So, how to tread the choppy water of IPOs? Here are five tips to give you direction.

Objective Research – We have already mentioned that gathering information about a company that is going public is difficult, and the company prospectus is often overblown. But by studying its competitors from the sector, you can make fair assumptions.

Strong Underwriting – Picking IPOs that are backed by strong underwriters is a tested way to avoid red flags. Quality brokers are likely to associate with companies showing strong fundamentals.

Read Prospectus: Sometimes, companies overblow the values in the prospectus, but it is still a great point to start. You can learn as much from the prospectus like their objectives for the IPO. If the company wants to raise money to repay previous loans, it might not be an encouraging sign for long-term growth.

Understand The Sector: There is always a lot of uncertainties surrounding IPOs, but learning about the sector (performance and growth) will help you understand if the projections mentioned in the prospectus are legitimate or not.

Lock-in Period: Lock-in period is the legally binding period that prevents investors from selling IPO shares. It could be three months or twenty-four months. If the share prices are inflated, you will notice a rush from insiders to sell their stocks right after the lock-in period gets over. But if they continue to hold, it is indicative of the company’s bright and sustainable future.

Wait for the lock-in period to get over and the insiders to start selling their shares to plan the next step.

Conclusion

Recent activities of investors are indicative of enthusiasm regarding IPOs. Whether or not you should buy Net Pix Shorts Digital Media Limited IPO, we suggest that you study the market well before investing. Net Pix Shorts Digital Media Limited is a new-age company, means there will be a lot of enthusiasm surrounding it, but also a higher degree of uncertainty.