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IPO

About IPO

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What is IPO

An unlisted company (A company which is not listed on the stock exchange) announces initial public offering (IPO) when it decides to raise funds through sale of securities or shares for the first time to the public. In other words, IPO is the selling of securities to the public in the primary market.  A primary market deals with new securities being issued for the first time.  After listing on the stock exchange, the company becomes a publicly-traded company and the shares of the firm can be traded freely in the open market.
 
The company which issues shares to the public is referred to as the issuer. There are two common types of IPO.
 
Fixed Price Offering
 
Fixed Price IPO can be referred to as the issue price that some companies set for the initial sale of their shares.
 
Book Building Offering
 
In the case of book building, the company initiating an IPO offers a 20% price band on the stocks to the investors. The interested investors bid on the shares before the final price is decided.
 
IPO is used by small and medium enterprises, startups and other new companies to expand, improve their existing business. An IPO is a way for companies to acquire fresh capital, which in turn can be used to finance research, fund capital expenditure, reduce debt and explore other opportunities. An IPO will also bring in transparency into affairs of the company since it will be required to inform financial numbers and other market-related developments on time to the stock exchanges. The company's investment in various equity and bond instruments will come under greater scrutiny after it gets listed. IPO of any company brings great deal of attention and credibility. Analysts around the world report on investment decisions of the clients.
 
Investing in an IPO:
 
Investors betting on an IPO can earn handsome returns if they are wise and have some expertise. The investors can form a choice by going through the prospectus of the companies initiating IPO. They need to go through the IPO prospectus carefully to form an informed idea about the company’s business plan and its purpose for raising stocks in the market. However, one must be watchful and have a clear understanding of analysing financial metrics in order to identify the opportunities.
 
An unlisted company (A company which is not listed on the stock exchange) announces initial public offering (IPO) when it decides to raise funds through sale of securities or shares for the first time to the public. In other words, IPO is the selling of securities to the public in the primary market.  A primary market deals with new securities being issued for the first time.  After listing on the stock exchange, the company becomes a publicly-traded company and the shares of the firm can be traded freely in the open market.
 

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Latest Updates on IPO

Short & sweet: Reduced IPO timeline to boost investor participation

Faster fund release will allow retail investors to apply for multiple issues, say experts

Updated On: 01 Mar 2024 | 1:57 PM IST

Test1 - We continue to hold 30% in Manipal Health: Manipal group chairman

In a Q&A, Dr Ranjan Pai also confirms that Manipal Health will look for a listing going forward

Updated On: 13 Apr 2023 | 3:20 PM IST

IPO of Avalon Technologies subscribed 2.21 times on final day of offer

The offer comprised new shares worth Rs 320 crore and an offer for sale component of Rs 545 crore

Updated On: 06 Apr 2023 | 10:49 PM IST

Go Digit General Insurance re-files preliminary IPO papers with Sebi

This came after Sebi returned Go Digit's draft IPO (Initial Public Offering) papers on January 30 and asked the company to refile the documents with certain updates

Updated On: 06 Apr 2023 | 10:51 PM IST

Avalon Technologies' IPO gets subscribed 9% on second day of offer

The IPO comprises a fresh issue of aggregating Rs 320 crore and an offer for sale of up to Rs 545 crore by promoters and existing shareholders

Updated On: 05 Apr 2023 | 9:37 PM IST

ESAF SFB to refile IPO prospectus with Sebi; eyes listing in H2 of FY24

Pegs capital need at Rs 1,000 cr for three years

Updated On: 05 Apr 2023 | 11:11 PM IST

Avalon Tech, largest IPO so far this calendar year, subscribed 8% on day-2

Issue closes tomorrow; firm had allotted shares worth Rs 389 cr to anchor investors Nomura Trust, Ashoka India Opportunities Fund, Goldman Sachs and Neuberger Berman

Updated On: 05 Apr 2023 | 11:07 PM IST

IPO only after achieving overall profitability: PhonePe CEO Sameer Nigam

We have raised $650 million as part of PhonePe's ongoing fundraise of up to $1 billion, said Sameer Nigam, CEO and founder of PhonePe

Updated On: 04 Apr 2023 | 10:23 PM IST

Mankind Pharma plans to brand medicines with API quality assurance

Firm to hit markets this year, to raise over Rs 4,000 cr

Updated On: 04 Apr 2023 | 11:12 PM IST

Cyient rejigs top leadership, appoints Karthik Natarajan as CEO

The company has elevated executive director (ED) and Chief Operating Officer Karthik Natarajan as ED and CEO

Updated On: 04 Apr 2023 | 11:17 PM IST

IPO of Avalon Technologies subscribed 3% on first day of issue

The retail investor portion of the issue was subscribed 16 per cent

Updated On: 03 Apr 2023 | 10:19 PM IST

Aeroflex Industries files draft papers to raise Rs 350 crore through IPO

Pantomath Capital Advisors is the sole book-running lead manager to the issue. The company's equity shares are proposed to be listed on the BSE and NSE

Updated On: 01 Mar 2024 | 1:58 PM IST

Street Signs: Covid trot to winning run, Avalon Tech's premium, and more

Banking stocks outperformed in the just-concluded financial year (2022-23), with the sectoral gauge gaining 12 per cent, against a 0.6 per cent decline in the benchmark National Stock Exchange Nifty

Updated On: 03 Apr 2023 | 6:10 AM IST

Byju's-backed Aakash expecting to cross Rs 3,000 cr in revenues this year

Byju's acquired AESL in 2021 for about $1 billion. Since then, Byju's said AESL's revenue and profits tripled

Updated On: 31 Mar 2023 | 8:53 PM IST

Oyo pre-files DRHP with Sebi, cuts issue size to $400-600 million

The DRHP was filed under the confidential pre-filing route with a reduced issue size of $400-600 million, all of which will be raised through a primary issuance, in a bid to repay the firm's debt

Updated On: 31 Mar 2023 | 10:21 PM IST

Equity fundraising in FY23 put through Fed wringer; IPO mop-up down 52%

The IPO activity was sporadic in FY23, with 25 of the 37 IPOs taking place in just three months

Updated On: 31 Mar 2023 | 8:35 AM IST

Fund raise via IPO more than halves to Rs 52,116 cr in FY23 from FY22

Overall public equity fundraising also dropped by 56 per cent to Rs 76,076 crore in the reporting year from Rs 1,73,728 crore in FY22

Updated On: 30 Mar 2023 | 4:53 PM IST

Eye on expansion, Haldiram family to invest Rs 2,500 crore in 5 years

Mulls IPO upon the merger of Noida, Nagpur businesses

Updated On: 29 Mar 2023 | 12:28 PM IST

Alibaba splits into six units, plans new IPOs in historic overhaul

The move frees up the Chinese company's main divisions from e-commerce and media to the cloud to operate with far more autonomy, laying the foundation for future spinoffs and market debuts

Updated On: 28 Mar 2023 | 10:28 PM IST

Mamaearth IPO in the works, engaged with regulators: CEO Varun Alagh

The firm's annual profit was Rs 14 crore the last year

Updated On: 27 Mar 2023 | 7:36 PM IST