Senco vs Alphalogic Industries vs Tridhya Tech: Know key risk factors before investing in these IPOs

The Indian IPO market is buzzing with activity this week as three companies, Senco Gold Limited, Alphalogic Industries Limited, and Tridhya Tech, prepare to go public. Given the potential opportunities these IPOs offer, investors are eagerly watching, but they should be aware of the key risk factors associated with each before investing.

Senco Gold Limited IPO

Kolkata-based jewelry retailer, Senco Gold, is preparing for its initial public offering (IPO), which will open on July 4 and close on July 6. The IPO consists of a fresh issue of up to Rs 270 crore and an offer for sale (OFS) of up to Rs 135 crore. The proceeds from the IPO will be used for working capital and general corporate purposes. Risks for potential investors include fluctuations in gold prices and the performance of the jewelry market in India.

Alphalogic Industries Limited IPO

Alphalogic Industries, a subsidiary of ATL, a previously listed entity on BSE, is in the business of industrial and institutional storage systems installation. The IPO will open on July 3 and close on July 6, with a price of Rs 96 per share, offering 12.88 lakh shares to the public. The company posted strong performance for FY23 with optimal utilisation of capacities. However, based on FY23 earnings, the issue appears fully priced, and investors should consider their investment from a medium to long-term perspective, according to market experts.

Tridhya Tech IPO

The Tridhya Tech IPO is set to open on July 5 and close on July 8, 2023. The issue price is expected to be around Rs 120 per share, with a total of 8.5 lakh shares on offer. Tridhya Tech, a leading IT services provider, plans to use the proceeds from the IPO for expansion into new markets and further product development. Potential risk factors for investors include the competitive nature of the tech industry and the risk of fluctuating revenues due to reliance on a few major clients.

Crucial risk factors before investing in IPOs

Prior to staking a claim in any initial public offering, investors are urged to carefully weigh the following crucial risk elements:

Performance Metrics of the Firm: Assessment of the company's fiscal vitality, rate of expansion, profitability, along with additional pivotal financial indices, is fundamental.

Market Instability: Present market conditions possess the capability to sway the IPO's introductory price. Any instability could instigate shifts in the stock price following its listing.

Sector-Specific Risk: Hazards tied to the distinct sector the firm is part of could directly influence its operational outcomes.

Regulatory Concerns: Corporations are governed by numerous laws and regulations. Any amendments in this legislative framework could impinge upon the firm's profit margins.

Quality of Leadership: The skillset and ethical standards upheld by the management cadre are vital components in determining the company's success.

Exercising diligent prudence before investing in any of these three upcoming IPOs is of utmost importance. It's highly recommended that potential investors delve into the company's prospectus, comprehending the business model, financial landscape, and associated risks prior to solidifying their investment decision.