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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-Economic Times IPOs: Get all the latest news on recent & upcoming IPOs. Find IPO Subscription and allotment status, IPO Reviews on The Economic Times.
- Why Hyundai India’s GMP crashed 76% even as market awaits India’s biggest IPOon October 11, 2024 at 8:36 AM
The GMP for Hyundai India is declining ahead of the IPO opening next week, with shares currently commanding a GMP of approximately Rs 139, reflecting a marginal premium of 7% over the issue price. The IPO consists of a complete OFS of 14.2 crore shares by the Korean parent company, priced between Rs 1,865 and Rs 1,960. At the upper end of this range, Hyundai India is valued at Rs 1.6 lakh crore.
- Hyundai India IPO could trigger a sector-wide positive re-rating for auto stockson October 11, 2024 at 8:12 AM
Hyundai Motor India’s upcoming IPO, valued at ₹27,870 crore, is set to be the largest public offering in the sector and is expected to attract substantial global interest and foreign capital. Analysts believe this could lead to a sector-wide re-rating for the auto industry.
- BlackRock, GIC to invest in Hyundai Motor India IPOon October 11, 2024 at 5:20 AM
The so-called anchor book for the IPO, which is set to be the biggest ever in India, has been fully allocated, with half going to domestic institutions and the other half to international investors, the people said.
- DMart Q2 Preview: PAT may rise 13% YoY; revenue growth to be driven by store expansionon October 11, 2024 at 4:16 AM
DMart is expected to show a steady performance in Q2, driven by 14% YoY revenue growth and store additions. Several brokerages forecast net profit increases up to 19% YoY. Revenue growth is primarily attributed to higher inflation and store expansion, with anticipated EBITDA margin improvements.
- Hyundai IPO: How the second largest car maker is planning to take on its nemesis Maruti Suzuki?on October 10, 2024 at 2:27 PM
Hyundai Motor India aims to challenge Maruti Suzuki with benchmark products and premiumization. The company’s IPO opens on October 15, priced at Rs 1,865-1,960 per share. Proceeds will go to the Korean parent.
- Garuda Construction IPO closes with overall subscription at 7.55 times. Check GMP, other detailson October 10, 2024 at 9:02 AM
Garuda Construction and Engineering IPO was subscribed 6 times on the last day, with strong retail demand. As of 2 pm, retail investors had subscribed 9.14 crore bids against 97.3 lakh shares reserved for them.
- Is India’s biggest IPO from Hyundai a damp squib due to entire-OFS offering?on October 10, 2024 at 4:24 AM
Hyundai India plans to launch its biggest ever IPO to raise Rs 27,870 crore through an offer for sale. This IPO will not bring funds directly to the Indian unit, as the proceeds will go to the Korean parent company. Still, Hyundai India’s strong cash reserves and strategic plans for growth remain promising.
- Pranik Logistics IPO opens: Check price band, GMP and other detailson October 10, 2024 at 4:15 AM
Pranik Logistics has opened its SME IPO for subscription today and will close on October 14. The company seeks to raise Rs 22 crore and plans to list shares on the NSE SME platform. The net proceeds will be used for technology investment, capital expenditure, working capital and corporate purposes. Investors can bid for 1600 shares per lot.
- Pranik Logistics’ Rs 22.47 crore IPO opens for subscription tomorrow. Check detailson October 9, 2024 at 9:34 AM
Pranik Logistics IPO opens on October 10, priced at Rs 73-77 per share. Proceeds will be used for working capital, technology development, and expansion of fleet and warehousing capabilities.
- With days to go for IPO, Hyundai India GMP crashes over 70% from highson October 9, 2024 at 7:35 AM
The market is anticipating the initial public offer (IPO) of Hyundai Motor India, which announced its price band today. The subscription period will open on October 15 and close on October 17. Following the price band announcement, the company’s grey market premium (GMP) remains steady at Rs 147.
- Garuda Construction IPO subscribed 4.1 times as on day 2. Check GMP, other detailson October 9, 2024 at 7:16 AM
Garuda Construction and Engineering’s IPO saw robust interest, especially from retail investors who oversubscribed 5.4 times on day two. The price band is Rs 92-95 per share, with plans to raise Rs 173 crore from fresh equity. Analysts recommend subscribing due to strong order books and promising growth prospects.
- SME IPOs faltering under regulatory scrutiny, but the pain may be worth iton October 9, 2024 at 4:45 AM
The SME IPO market in India is slowing down due to stricter regulations. Subscriptions and listing gains have declined. The new norms aim to enhance market stability by ensuring only financially strong companies get listed. This shift follows concerns about price manipulation and inflated valuations, aiming to improve the quality of listed companies.
- Hyundai Motor India’s Rs 27,856 crore IPO opens on 15th Oct; price band fixed at Rs 1,865-1,960on October 9, 2024 at 3:21 AM
Hyundai Motor IPO: Hyundai Motor India will launch its IPO on October 15, aiming to raise up to Rs 27,856 crore. The offer includes up to 14.2 crore shares. QIBs have 50% reserved, retail investors 35%, and non-institutional investors 15%. The tentative listing on NSE and BSE is on October 22.
- At Rs 27,800 crore, Hyundai Motor makes India’s largest IPO even biggeron October 8, 2024 at 11:52 PM
This will be India’s largest public issue, surpassing the previous record set by the ₹21,008-crore public issue of the state-owned Life Insurance Corporation of India in May 2022.
- Swiggy delivers $271 million Esops to top executiveson October 8, 2024 at 3:55 PM
Of this, the food and grocery delivery major’s founder and group CEO Sriharsha Majety gets $200 million worth Esops. The Esop 2024 scheme comes with a vesting period of one to eight years from the date of the grant.
- Hyundai Motor India IPO opens next week with likely price band of Rs 1,865-1,960: Reporton October 8, 2024 at 8:37 AM
Hyundai Motor India is set to launch its IPO next week. The shares will likely be priced between Rs 1,865 to 1,960 each. This will value the automaker at up to Rs 1.6 lakh crore. The IPO opens for big institutional investors on October 14 and for retail investors from October 15 to 17.
- Hyundai Motor plans to offload 14.2 crore shares in upcoming mega IPOon October 8, 2024 at 7:26 AM
Hyundai Motor plans to sell 142 million shares in its Indian unit through an initial public offering, retaining an 82.5% stake afterward. The sale aims to raise approximately $3 billion, valuing Hyundai Motor India at around $20 billion. This marks the first carmaker IPO in India since 2003.
- Garuda Construction IPO subscribed 1.9 times on day 1. Check GMP, other detailson October 8, 2024 at 7:00 AM
Garuda Construction and Engineering’s IPO, opening for subscription today, saw significant demand, particularly from retail investors, achieving an overall subscription rate of 1.91 times. The IPO, priced at Rs 92-95 per share, includes a fresh equity sale worth Rs 173 crore and an offer for sale of Rs 90 crore.
- Sebi approves NSDL IPO, HDFC Bank to pare stakeon October 8, 2024 at 4:16 AM
Sebi has approved the IPO of National Securities Depository Limited (NSDL). The offer for sale will include 57,260,001 shares, with major stakeholders like IDBI Bank, NSE, and SBI reducing their stakes. NSDL is the largest depository in India. The company’s shares will be listed on BSE. Several banks and financial institutions are key stakeholders in this IPO.
- Shiv Texchem IPO opens: Check GMP, price band, and other detailson October 8, 2024 at 3:15 AM
The SME IPO of Shiv Texchem has opened today and closes on October 10, aiming to raise Rs 101 crore through a fresh equity sale of 61.05 lakh shares. The company plans to list on the BSE SME platform. Key details about the offer are provided to help investors make informed decisions before subscribing.
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.
