On this page find out everything related to IPO’s and Upcoming IPOs Review in a detailed way.
What Is IPO?
Initial Public Offering (IPO) is a process through which any company initially(first time) offers shares to all investors (institutional or big investors, retail investors(common people). Through IPO, a company is actually letting common investors to be part of their company through investing their individual money.
When a company decides to file for an IPO, it will issue shares in public domain with a predetermined price band(Rs.50, 100, 200 etc.), investor who thinks that this company is worth investing, they will apply for its IPO. Hence, the name Initial Public Offer(IPO).
Why Companies Open IPO’s?
Companies launch IPO for various reason it can be for raising capital (money), avoiding debt or loan, this can be helpful in growth ,expansion, increasing production, manufacturing units, manpower etc.
Before understanding why does company launch IPO it becomes really important for you to know small difference between share market and stock market:
There are two kinds of share market, the Primary market and the secondary market.
- In the primary market a company gets registered to issue shares and raise money from public or other investors.
- Any company enters primary market to raise capital and the first issuance of share for raising capital is known as IPO (Initial Public Offering).
- Once the shares are sold in the primary market it enters the secondary market for trading. In the secondary market the investors can enter into position or exit as and when they feel like. Any trader or investor now can easily though there fingertips trade or invest its money.
This whole process where one bids for shares, is referred to as the Primary Market. On the other hand when the stock gets listed and debuts on the stock exchange, the stock starts to trade publicly.
This is called the secondary market. Once the stock gets listed it gets traded daily on the stock exchange. Now you can start buying and selling stocks regularly.
Below image represents the same in totality of how share market works step by step.
Let us understand this through an simple example:
Suppose you are owner of a shoe making company, The business is running from last 5 years and you build it with certain other people from scratch. You are producing shoes locally and distributing it in your nearby areas. People are liking it, you came to know through feedback about the demand of your product in different metro cities.
One day you thought of increasing the capacity as well as the manufacturing units. For this you need more manpower as well you may need to acquire land, machine and other requirements.
As you are running the business it will have certain cost attach to it. It can be borrowed from banks, But what if you have borrowed much already? Will the banks still provide them loans?
Any-which ways banks has given you money on interest that you need to pay. So you can’t ask for more now, all your friends or colleagues who are partner in the company does not have enough funds.
The idea seems to be perfect, but how you will going to do that?
For this you need money, The prospects of your company looks good, especially in the booming online industry. Applying for IPO and solve your capital expenditure problem looks like a solution. The reason for any company to go public is to raise funds in order to expand their business & infrastructure or to repay any loans.
This money helps companies in various ways, For example:
- The money that gets generated through IPO helps in growth and expansion.(increasing production, manufacturing units, manpower etc.)
- Through IPO company can also avoid more debt or loan, which increases more profitability.(lesser debt means lesser interest to pay)
- Due to share listing a company credibility also gets increased, which helps to obtain better terms when seeking funds from banks or large investors.
- One more important thing which can be called negative for investors but positive for company is risk. By involving large people they are reducing risk to their business, as being investor you own certain percentage(as you hold shares of that company), if company fails to delivery in future, there shares may hit, company valuation will be down and your money will be lost.
Take this truth as ‘pinch of salt’ but it’s indeed true that you are now part of the risk as a part of the business. But this is also truth that no business can happen with zero risk.
You might have heard of a famous Bollywood Hindi movie inspired by the life of Dhirubhai Ambani named Guru, in which he goes to public to give funds so that he can expand his business, similar to that happens when company launches IPO. By the way reliance went for public offering in the year 1977.
What book building Means?
Book Building is the process of underwriter coming up with the price at which an initial public offering (IPO) will be offered. There is a minimum price and maximum price for the issue. During the time an IPO is open, investor bids for upper/equal price than the floor price. The offer price is determined after closing the IPO.
How Can I apply multiple applications in same IPO using same UPI?
No, you can not apply multiple applications in same IPO using same UPI, For one bank account one IPO application is allowed.
What are the acceptable UPI Apps?
You can use BHIM UPI App, along with BHIM Axis Pay (only android), BHIM SBIPay (only android), Citi Mobile (android & iOS), Google Pay (android & iOS), HSBC Simply Pay (android & iOS), iMobile by ICICI Bank (android users), Phone-Pe (android & iOS) (For more Info Refer – https://www.npci.org.in/upi-live-ipo)
What is cut off price in IPO?
Cut off price in IPO’s is the price at which investors get the shares issued. An investor can place the bid for the desired quantity at either equal to or higher than the price within the applicable range. This bid price is known as “Cut off price”.
How Many Types of Investor are there in IPO?
Under Securities and Exchange Board of India (SEBI) guidelines, there are four types of investors who can bid for shares during the IPO process. Below are these –
- Qualified institutional investors (QIIs)
- Anchor investors
- Retail investors
- Non-institutional investors (NII)
Alright, Below are the Upcoming IPOs which are not launched yet and only DRHP (Draft Red Herring Prospectus) has been filled at SEBI (Securities and Exchange Board Of India).
Upcoming IPOs In India In 2021:
Below are the details of upcoming IPOs in India in 2021,
KIMS IPO aka Krishna Institute of Medical Sciences IPO is launched for subscription on Wednesday 16, June 2021, and will be available for subscription till Friday, June 18, 2021.
The company is looking to raise Rs.2,143.74 crore through public issue with a fresh issue worth Rs 200 crore and a offer-for-sale (OFS) 2.35 crore equity shares from promoters and existing shareholders.
The offer includes Rs 20 crore worth of shares set aside for the company’s employees, who will avail a discount of up to Rs 40 per share on the issue price.
The company has set the IPO price band at Rs 815-825 , which will conclude on June 18. Investors can bid for a minimum of 18 shares and in multiples of 18 thereafter.
Sona Comstar IPO also known as Sona BLW Precision Forgings is getting launched for subscription on Monday 14, June 2021, and will be available for subscription till Wednesday, June 16, 2021.
The company is looking to raise Rs.5,500 crore through public issue with a fresh issue worth Rs 300 crore and a offer-for-sale worth Rs 5,250 crore by a Blackstone entity, Singapore VII Topco III Pte Ltd.
The company is looking to raise Rs.520 crore through public issue with a fresh issue worth Rs 50 crore and a offer-for-sale (OFS) up to 1.09 cr equity shares by TPG Dodla Dairy Holdings, Dodla Sunil Reddy, Dodla Deepa Reddy and Dodla Family Trust.
The Dodla Dairy IPO issue will be sold in the price band of Rs 421-428 per share and the minimum lot quantity is 35 shares and in multiples thereof translating to a minimum investment of Rs 14,735 at upper end.
Zomato IPO Details:
Bidding Date – Not announced
Minimum Investment – NA
Lot Size – – NA
Price Range – – To Be Announced
Issue Size – – 8250 Cr
IPO Doc – DRHP Doc
About Zomato Company:
Zomato was founded as Foodiebay in 2008, and was renamed Zomato on 18 January 2010 as Zomato Media Pvt. Ltd. Zomato is an Indian multinational restaurant aggregator and food delivery company founded by Pankaj Chaddah and Deepinder Goyal in 2008.
Zomato provides information, menus and user-reviews of restaurants as well as food delivery options from partner restaurants in select cities. As of 31, December 2021, the service is available in 24 countries and in more than 10,000 cities. Whereas in India it has presence in more than 530 cities with 3,50,212 active restaurant listings.
If we talk about Zomato revenues in last three years, it has moved up from Rs.487 cr in FY Mar-18, Rs.1,398 cr in FY Mar-19, to Rs.2,743 cr in FY Mar-20.
Where as Zomato total Asset in last 3 years has seen significant drop, it was Rs.1374 cr in FY Mar-18, Rs.3,413 cr in FY Mar-19, to Rs.2,900 cr in FY Mar-20
On the other hand Zomato Profits have also been in negative zone from last three years, it was Rs.-107 cr in FY Mar-18, Rs.-1,010 cr in FY Mar-19, to Rs.-2,386 cr in FY Mar-20.
More on Zomato will be review shortly when all the information will be available through RHP.
LIC IPO Details:
Bidding Date – Not announced
Minimum Investment – NA
Lot Size – – NA
Price Range – – To Be Announced
Issue Size – – NA
IPO Doc – DRHP not submitted to SEBI Yet
About LIC Company:
Life Insurance Corporation of India (abbreviated as LIC) is an Indian government owned insurance and investment corporation. It is under the ownership of Ministry of Finance, Government of India .
The Life insurance Corporation of India was established on September 1, 1956, when the Parliament of India passed the Life Insurance of India Act that nationalized the insurance industry in India. Over 245 insurance companies and provident societies were merged to create the state-owned Life Insurance Corporation of India.
As of 2019, Life Insurance Corporation of India had total life fund of ₹28.3 trillion. The total value of sold policies in the year 2018–19 is ₹21.4 million. Life Insurance Corporation of India settled 26 million claims in 2018–19. It has 290 million policy holders.
Finance Minister Nirmala Sitharaman announced a proposal to conduct an initial public offering for LIC in the 2021 Union Budget. The IPO is expected to be held in FY22. The Government of India will remain the majority shareholder after the public listing.
10% of shares are proposed to be allotted to existing LIC policyholders. In year 2021, government of India had proposed to significantly enhance the authorized capital of Life Insurance Corporation of India (LIC), to INR 250bn ($3.4bn) to facilitate its public listing scheduled for the next fiscal year which will begin on 1st April.
More on LIC IPO will be review shortly when all the information will be available through DRHP.
Apart from above major Upcoming IPOs there are some other IPO’s scheduled in the pipeline to be launched later this year in 2021, these are mentioned below, however the dates are yet to be announced:
Medi Assist Healthcare Services Ltd
Fincare Small Finance Bank Ltd
Nuvoco Vistas Corporation Ltd
Chemplast Sanmar Ltd
Aditya Birla Sun Life AMC Ltd
Glenmark Life Sciences Ltd
G R Infraprojects Ltd
Shriram Properties Ltd
Clean Science & Technology Ltd
List Of IPO’s Launched In 2021:
Below are the lists of major IPO’s that has been launched till now in 2021, you can click on the link to know more about it in detail.
List Of IPO’s Launched In 2020:
Below are the lists of major IPO’s that has been launched last year in 2020,
As, you can see in the image above there were about 14 Major IPO’s tat got listed, out of them only 4 have given negative returns on listing day. Checkout here 2020 IPO Performance List
Moneycontain Upcoming IPOs page gets updated as soon as the new IPOs comes so do check it out, moreover apart from above if you are beginner in stock market and want to learn more about IPO’s do check out everything related to IPO and get all answers here.