Don’t miss the latest developments in business and finance.

image

IPO

About IPO

Facebook IconLinkedIN Icon

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.
 

Watch Video

Latest Updates on IPO

Companies typically avoid December due to concerns about limited participation from foreign portfolio investors during the year-end holiday period

Updated On: 20 Dec 2024 | 9:20 PM IST

These stellar debuts came despite the benchmark indices logging continuous declines since their initial public offerings (IPOs) closed on Friday

Updated On: 18 Dec 2024 | 11:11 PM IST

Investors can bid for a minimum of 23 equity shares and in multiples of 23 equity shares thereafter

Updated On: 17 Dec 2024 | 8:27 PM IST

Handful of domestic, foreign institutions show large activity in SME segment: Report

Updated On: 16 Dec 2024 | 11:35 PM IST

Industry players note that the sharp rally in the market over the past month has emboldened companies to advance their listing plans

Updated On: 16 Dec 2024 | 11:39 PM IST

The initial share-sale is scheduled to close on December 23 and the bidding for anchor investors will open for a day on December 18, the company announced

Updated On: 16 Dec 2024 | 1:44 PM IST

Jammu-based company DeVANS Modern Breweries also plans to enter the duty-free space with one-litre bottles of its Single Malt brand GianChand exclusively for travel retail

Updated On: 15 Dec 2024 | 9:30 PM IST

Mobikwik subscribed 119x, Vishal Mega Mart 27x, Sai Life 10.3x

Updated On: 13 Dec 2024 | 11:11 PM IST

Public issue will conclude on December 23 and the bidding for anchor investors will open for a day on December 18, the company announced

Updated On: 13 Dec 2024 | 2:53 PM IST

Most of the MF investments in the three companies (Swiggy, Zomato and NTPC) are likely to have happened in the primary market, with mutual funds being major investors during the IPO anchor allotments

Updated On: 12 Dec 2024 | 11:41 PM IST

Other participants included existing investor Evolvence. The Series G round which was a mix of primary and secondary share sales also facilitated exits for certain investors, the company said

Updated On: 12 Dec 2024 | 10:31 PM IST

The IPOs of SaiLife and Vishal Megamart were subscribed 0.84 times and 0.5 times

Updated On: 11 Dec 2024 | 11:28 PM IST

Mobikwik IPO GMP today: Mobikwik shares were trading at Rs 415 apiece, reflecting a grey market premium (GMP) of Rs 136 or 48.75 per cent per share

Updated On: 11 Dec 2024 | 9:08 AM IST

SME IPO is a red-hot market segment. Many of these floats routinely see 100-time subscription and massive gains upon listing

Updated On: 09 Dec 2024 | 11:32 PM IST

With the IPO, the company aims to provide an opportunity for investors to participate in one of the fastest-growing niches in the US healthcare sector

Updated On: 09 Dec 2024 | 6:52 PM IST

Flipkart, valued at $36 billion, is planning to launch its initial public offering by 2025-26, and will be shifting its domicile from Singapore to India

Updated On: 09 Dec 2024 | 10:29 AM IST

Investors led by the People Activism Forum urge Delhi HC to direct Sebi to approve NSE's IPO, alleging unjustified delays that hinder shareholder value and public market access

Updated On: 09 Dec 2024 | 9:21 AM IST

Shares of BSE have surged more than 20 per cent in less than two weeks, defying concerns surrounding the Securities and Exchange Board of India's (Sebi's) new futures and options

Updated On: 08 Dec 2024 | 11:30 PM IST

Unshackling animal spirits: A record Rs 1.1 trillion in foreign flows via IPOs, QIPs, and rights issues

Updated On: 08 Dec 2024 | 11:30 PM IST

Other mainboard IPOs to be launched during this period are Inventurus Knowledge Solutions Ltd and Blackstone-owned diamond grading firm International Gemmological Institute (India) Ltd

Updated On: 08 Dec 2024 | 1:11 PM IST