What is an IPO?
Without getting into a lot of technical details, let us understand what an Initial Public Offering or IPO means in very simplistic terms. Let us say that there is a Company A, which is doing well, and wants to raise money for further expansion.
Subject to fulfilling all conditions laid down by the Securities and Exchange Board of India, the company can raise money by issuing fresh shares to the public and also to select investment banks, mutual funds and institutions.
The fresh issue of capital at a share price would be determined by the merchant bankers and the company. Thus when shares are issued to the public, the company will than get its shares listed and become a full-fledged company. The process of listing a company by offering shares to various categories of investors is called an IPO.
There are many advantages of an IPO. Some of these include:
1) Listing of shares
One of the biggest advantages of an IPO, is that the promoters can get their shares listed. The shares begin to trade on the exchanges after all the listing and other agreements are complied with.The shares would than trade like all other listed companies.
2) Raising Capital
Another advantage of an IPO is that it allows you to raise capital. Say a company has tried to raise money through banks and institutions, but there are limitations there. It can than use the Initial Public Offer Route. However, it has to clearly specify in the offer document how the money raised from the public will be utilized.
3) Compliance in an IPO
In all cases there has to be transparency and abiding with the provisions of guidelines by the Securities and Exchange Board of India, RBI, exchanges and various other authorities. Do feel free to browse our website for all details on forthcoming IPOs and terms that you may not be familiar with in an Initial Public Offering.
Upcoming IPO's
In the past six decades, they have achieved the title of 25 billion groups. The manufacturing plant of the company is located in West Bengal. Their products are certainly strong with the capacity to bear earthquake and repel corrosion. Their industry servings vary with rail, bridges, roads, airports, defence, ports and energy sectors.
The company has a vision that depicts “Leadership through Differentiation”, which is why they facilitate strength through their business model. Popular with the name of “The Park”, this hospitality business chain extends exceptional operational efficiency.
Studds is the flagship brand under the company’s profile and is the largest selling two-wheeler helmet brand with access to the market of 40 countries around the world. Studd Accessories has launched its IPO with shares having a face value of INR 5 each.
The lead managers for this IPO issue are Axis Capital, ICICI Securities Ltd, HSBC Securities, Edelweiss Financial Services Ltd along with Capital markets (India) Pvt Ltd. The registrar for the IPO is Kfin Technologies Private Limited.With the IPO, the company aims to acquire five projects under the sponsor TBCB projects.
The LIC IPO will be regulated and monitored by the Department of Investment and Public Asset Management popularly known as DIPAM. The organisation takes care of disinvestments and investments made by the government. The secretary of DIPAM, Tuhin Kanta Pandey has assured that investors can prepare themselves for the IPO by October 2021.
It’s one of the large scale manufacturers of diversified chemical products in the acetyl intermediates domain. The company comprises two departments or sections for the Department of Scientific and Industrial Research.
Highdell Investment is expected to make a sale of INR 500 crore investment. It’s one of the most valuable IPOs to be seen in 2021 as the brand holds an extensive record in manufacturing and selling a variety of gold, diamond-studded and different jewellery products with different pricing. Also, their jewellery category varies as per special and specific occasions including weddings and more.
With a combination of advanced machinery and proficient computer numerical control tools among other significant technologies and machinery, the manufacturing facilities are certainly exceptional. These units are centrally located in proximity to key customers and allow them to fulfil the customers delivery schedules within the deadlines.
The company claims to have secured the supply of fuel. Not just that, but the company has a potential track record of financing, developing and processing thermal power plants. The company is accurately positioned to grow as per the demand of Uttar Pradesh’s power hub.
Aadhar Housing Finance operates with a financially focused customer-oriented business of providing loans and further believes that their efforts are directed to Foster economic development and improvisation of the focused group of customers.