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An initial public offering (IPO) is the process of offering shares of a private corporation to the public in a new stock issuance. This allows a company to raise capital from public investors. Meanwhile, it also allows public investors to participate in the offering. The investor can apply for IPO Stocks in India by filling an online IPO application offered by the stockbrokers and banks. Brokers offer UPI-based online IPO applications and the banks offer both UPI as well as ASBA IPO applications.
IPOs/FPOs-Markets-The Economic Times IPOs: Get all the latest news on recent & upcoming IPOs. Find IPO Subscription and allotment status, IPO Reviews on The Economic Times.
- Carraro India collects Rs 375 cr from anchor investors ahead of IPOon December 19, 2024 at 5:41 PM
Carraro India, a transmission systems manufacturer, raised Rs 375 crore from anchor investors. The IPO opens December 20-24, with shares priced at Rs 668-704. The offer comprises a Rs 1,250 crore offer for sale by Carraro International SE. The company manufactures axles and transmissions for agricultural and construction vehicles. Carraro India supplies products to major Indian and international OEMs.
- Blackstone-backed Ventive Hospitality raises Rs 719 cr from 26 anchor investorson December 19, 2024 at 4:04 PM
Ventive Hospitality, a luxury hospitality asset owner, has raised over Rs 719 crore from 26 anchor investors ahead of its IPO. The anchor book was oversubscribed 2X, with significant participation from mutual funds, insurance companies, and sovereign funds. The IPO opens on Friday.
- Zetwerk raises USD 90 mn at USD 3.1 bn valuation; plans IPO in 18 monthson December 19, 2024 at 3:57 PM
Manufacturing unicorn Zetwerk has raised USD 90 million, about Rs 766 crore, in a fresh funding round at a valuation of USD 3.1 billion, a top company official said on Thursday. The valuation of the company was USD 2.7 billion early this year.
- 1,976x subscription! SME IPO asking for Rs 10 crore gets bids worth Rs 14,386 croreon December 19, 2024 at 12:55 PM
NACDAC Infrastructure’s IPO received an overwhelming 1,976 times subscription, despite Sebi’s tighter regulations for SME IPOs. The company aims to use the funds for working capital and general corporate purposes.
- Laxmi India Finance files DRHP with Sebi for IPOon December 19, 2024 at 11:25 AM
Laxmi India Finance, a Jaipur-based non-banking financial firm, has filed its DRHP with SEBI for an IPO. The IPO comprises a fresh issue and an OFS. The company primarily focuses on MSME and vehicle loans.
- Mega multibagger! Billionaire Jhunjhunwala family makes 530x return in Inventurus IPOon December 19, 2024 at 9:51 AM
Inventurus Knowledge Solutions saw a successful IPO, listing at a 43% premium. The Jhunjhunwala family, early investors, earned substantial returns, reportedly 530 times their initial investment. The IPO consisted entirely of existing shares being sold. The company provides healthcare solutions and has shown strong financial growth. Revenue and profits increased significantly in the first half of the fiscal year.
- Transrail Lighting IPO oversubscribed by retail investors. Check key dates, price band, GMP and reviewon December 19, 2024 at 8:48 AM
The IPO includes a fresh equity issue of Rs 400 crore and an offer-for-sale (OFS) of 1.01 crore shares by promoter Ajanma Holdings. At the upper price band, the OFS is valued at Rs 439 crore, bringing the total issue size to approximately Rs 839 crore and valuing the company at a market capitalization of about Rs 5,800 crore.
- Identical Brains Studios IPO subscribed 55 times so far on Day 2: Check key dates, GMP, price band and other detailson December 19, 2024 at 8:35 AM
The SME IPO of Identical Brains Studios, which opened for subscription on Wednesday, has been subscribed 55 times by the second day of bidding, driven by strong market demand. By 1 PM, non-institutional investors (NIIs) had subscribed over 16 times, while retail investors had applied for 16.99 crore shares, with 84,946 bid applications.
- Newmalayalam Steel IPO Day 1: Check key dates, GMP, price band and other detailson December 19, 2024 at 8:13 AM
Newmalayalam Steel’s SME IPO has achieved 88% subscription so far, aiming to raise Rs 42 crore. The IPO offers shares at Rs 85-90 and closes on December 23.
- Euro Pratik eyes Rs 700-1,000 crore IPO; plans to file draft papers by Dec-endon December 19, 2024 at 7:43 AM
Euro Pratik, a prominent player in the decorative wall panel industry, is set to file draft papers with the market regulator Sebi for an initial public offering (IPO) worth Rs 700-1,000 crore, sources familiar with the matter said on Thursday.
- NACDAC Infrastructure IPO subscribed 896 times on day 3. Check GMP and other detailson December 19, 2024 at 7:36 AM
The SME IPO of NACDAC Infrastructure was fully subscribed by 12:25 PM on the final day of bidding, with an overall subscription of 896.28 times. The Rs 10 crore IPO, which is a fresh issue, will list on the BSE SME platform. Retail investor subscriptions reached 1,437.20 times, non-institutional investors subscribed 822.60 times, and qualified institutional buyers made bids 6.30 times.
- Transrail Lighting raises Rs 245.97 crore from anchor investors ahead of IPOon December 19, 2024 at 7:11 AM
Winro Commercial (India) secured the top allocation at 19.51%, followed by ICICI Prudential Energy Opportunities Fund and Tata ELSS Tax Saver Fund with 9.35% each, and Bengal Finance and Investments at 8.13%, as per the exchange filing.
- Morgan Stanley, others pick stake in Concord Enviro ahead of Rs 500 cr IPOon December 19, 2024 at 5:32 AM
Morgan Stanley Asia (Singapore) PTE-ODI, along with Societe Generale, emerged as a prominent foreign institutional investor in the anchor bidding round of Concord Enviro Systems’ IPO, which raised Rs 150.09 crore from anchor investors prior to its public offering.
- Concord Enviro Systems IPO opens. Check key dates, price band, GMP and reviewon December 19, 2024 at 2:37 AM
Concord Enviro Systems’ IPO, worth Rs 500 crore, opened for subscription until December 23. The company, specializing in water treatment solutions, priced shares at Rs 665-701. Analysts recommend subscribing, citing strong financials and growth potential. Listing is expected on December 27.
- Mamata Machinery IPO subscribed 5.19 times on Day 1 so far. Check GMP, review and other key detailson December 19, 2024 at 2:35 AM
Mamata Machinery’s IPO saw enthusiastic response on its first day, achieving an overall subscription of 5.19 times. Retail investors drove the demand with an 8.25 times subscription. The IPO, an offer for sale worth Rs 179 crore, is priced at Rs 230-243 per share, with a strong grey market premium.
Important Terms Related to IPO
Price Band
It is generally the lowest for retail investors (i.e. private individuals). If the price band has been fixed at Rs.50-55 per share, you cannot bid below Rs. 50 or above Rs. 55. It is the price range within which investors can bid for IPO shares. It is set jointly by the company and the underwriter and is different for each investor category, viz. qualified institutional buyers (QIBs), retail investors, and high net-worth individuals (HNIs).
Book Building Process
The process of deciding the issue price for an IPO based on the prices bid by investors. The issue price will be closer to the upper end of the price band if investors have shown strong interest in the IPO and bid high. Otherwise, it will be closer to the lower end of the band.
Offer Date
This is the first date when you can apply for shares in an IPO. It is also known as the opening date of an IPO.
Lot size
The minimum number of shares you can bid for in an IPO. If you want to bid for more shares, it has to be in multiples of the lots size. For example, if the lot size for an IPO is 1500 shares, you have to bid for at least these many. If you want to bid for more, it should be in multiples of 1500, such as 3000 and 4,500.
Minimum Subscription
This is the minimum percentage of IPO shares that retail investors need to subscribe to for an IPO to go through. At present, the minimum subscription is 90%. The company has to refund the entire subscription amount if this 90% threshold is not met.
Floor Price
The minimum price per share that you can bid when applying for an IPO is called the Floor Price. In case of IPOs with a price band, this is the lower limit of the price band.
Issue Price
The price at which shares are allotted to investors once the book building process is over. The issue price is different for each investor category and is generally the lowest for retail investors. It is also called offer price at times.
Cut-off Price
This is the lowest issue price at which shares are allotted in an IPO. It is generally reserved for retail investors. If your bidding price is higher than the cut-off price, the difference will be refunded to you.
Oversubscribed
An IPO is oversubscribed if investors have bid for more shares than offered by the company.
Oversubscription
The excess subscription amount received by the company in case of an oversubscribed IPO is called oversubscription.
Underwriter
An investment bank works closely with the issuing company to manage the IPO. They’re called underwriters. Among their many jobs are deciding the offer price, marketing the IPO, and distributing the shares to investors. The underwriter receives an underwriting fee in return for its services.
Listing Date
This is the date on which IPO shares start trading on the stock exchange. You can sell the shares you received in the IPO and buy the company’s shares if you don’t receive them in the IPO.
The Bottomline
IPO can appear to be a very complicated process first up. But that is only because of its many technicalities. It is quite simple to understand once you are aware of some key IPO terms. This IPO glossary will help you master these terms and make the most out of IPOs.
