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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.
- IPO scorecard in H1FY24: Only 1 loser, average listing gains at 29%on October 4, 2023 at 10:25 AM
Ideaforge topped the charts with a stupendous return of 93%, followed by Utkarsh Small Finance Bank at 92% and Netweb Technologies at 82%. The largest IPO in the first half was from Mankind Pharma (Rs 4,326 crore), followed by JSW Infrastructure (Rs 2,800 crore) and RR Kabel (Rs 1,964 crore)
- Three cos file draft papers with Sebi to raise funds via IPOson October 4, 2023 at 9:45 AM
Proceeds from the fresh issue will be used to set up new dedicated unit for expansion of the company’s pick and carry cranes manufacturing capacity, payment of debt, investment in the company’s NBFC subsidiary Barota Finance.
- Plaza Wires IPO booked 43.22x so far, driven by 175x retail subscriptionon October 4, 2023 at 8:15 AM
The initial public offer (IPO) of Plaza Wires was subscribed a strong 43.22 times so far on the third day of the bidding process on Wednesday. This was led by massive subscription from retail investors at 175.69 times.
- Tata Technologies IPO: 10% issue reserved for Tata Motors shareholderson October 4, 2023 at 5:58 AM
The issue, which is an offer for sale (OFS) will see the promoter company and two investors offloading a combined 95,708,984 equity shares. Tata Motors will offer up to 81,133,706 equity shares which is 20% of the pre-offer paid-up equity share capital of Tata Technologies.
- Saraswati Saree, Exicom Tele and Vibhor Steel file draft papers with Sebi to launch IPOson October 3, 2023 at 3:16 PM
The IPO of Exicom Tele Systems comprises a fresh issue of Rs 400 crore and an OFS of 74 lakh shares
- Updater Services D-Street debut: What GMP signals about potential listing price on Wednesdayon October 3, 2023 at 1:25 PM
The Rs 640-crore IPO of Updater Services was subscribed 2.9 times overall at the close. The issue comprised fresh equity of Rs 400 crore and an offer for sale (OFS) of 80 lakh shares by promoter and other selling shareholders
- Valiant Laboratories IPO subscribed 29.7 times on last day; Plaza Wires offer booked 17.23x on Day 2on October 3, 2023 at 7:48 AM
The public offer of Plaza Wires is seeing robust response from investors. The overall subscription stood at 27.90 times so far on the second day.
- Waaree plans $350 million IPO fundraise, targets $3 billion valuationon October 3, 2023 at 12:01 AM
The solar panel maker is working with investment banks Axis Capital, Jefferies and Nomura on the proposed IPO, the sources said, adding that the company was likely to file its draft prospectus with the market regulator before the end of the calendar year.
- Valiant Laboratories, Plaza Wires IPOs, 12 SME issues currently open for subscription. check detailson October 2, 2023 at 5:49 AM
Valiant Laboratories & Plaza Wires are open for subscription in the mainstream segment. As many as 12 IPOs in the SME segment are available for public subscription. These issues are Goyal Salt, Sunita Tools, Canarys Automations, Oneclick Logistics, Vinyas Innovative, Kontor Space, E Factor Experiences, Vivaa Tradecom, Karnika Industries, Plada Infotech, Sharp Chucks and Vishnu Priya Projects.
- Demat accounts adding up on IPO rush even as some swing to safetyon October 2, 2023 at 2:34 AM
The number of demat account openings at domestic broking firms in India has increased during FY24 due to the stock market rally, low brokerage fees, and a surge in IPOs. However, the active client base has shrunk as market participants reduce trading due to volatile swings. The total number of demat accounts as of August 31 reached 12.65 crore, a 10.7% increase from March 31. Brokers expect this growth to continue, particularly in smaller cities and towns.
- Popular Vehicles, Azad Engineering file draft IPO papers with Sebion October 1, 2023 at 10:11 AM
Popular Vehicles and Services IPO comprises fresh equity issue of Rs 250 crore and an offer for sale up to 1.42 crore shares. Azad Engineering’s IPO includes a fresh issue of up to Rs 240 crore and an OFS of Rs 500 crore. Under the OFS, Rakesh Chopdar, Piramal Structured Credit Opportunities Fund and DMI Finance will sell shares
- JSW Infrastructure, Vaibhav Jewellers shares to debut on Tuesday. What GMP signals ahead of listingon October 1, 2023 at 7:12 AM
JSW Infrastructure is the fastest growing port-related infra company in terms of growth in installed cargo handling capacity and cargo volumes handled during FY21-23, and the second largest domestic commercial port operator by cargo handling capacity in FY23.
- Updater Services IPO share allotment out. Here’s how you can check statuson October 1, 2023 at 6:17 AM
The company’s shares are expected to get listed on the exchanges on October 3. Updater Services is commanding a premium of Rs 0 in the unlisted market, which indicates the stock is expected to see a muted to flattish listing. The Rs 640-crore IPO of Updater Services was subscribed 2.9 times overall at close.
- Azad Engineering files Rs 740-cr IPO papers with Sebion September 30, 2023 at 10:11 AM
Azad Engineering is one of the key manufacturers of their qualified product lines supplying global original equipment manufacturers (OEMs) in the aerospace and defence, energy, and oil and gas industries, manufacturing highly engineered, complex, and mission and life-critical components.
- Diagnostic firm Agilus Diagnostics files DRHP for IPO with Sebion September 30, 2023 at 7:52 AM
The issue comprises offer for sale (OFS) aggregating up to 14,233,964 equity shares where International Finance Corporation l, NYLIM Jacob Ballas India Fund III LLC and Resurgence PE Investments will look to divest their stakes.
- Agilus Diagnostics files draft papers with Sebi to raise funds via IPOon September 30, 2023 at 7:16 AM
Agilus Diagnostics, formerly known as SRL Ltd, is one of the largest diagnostics service providers in terms of number of laboratories and the second largest in terms of revenue from operations in India, as of financial year ended March 31, 2023, according to a Crisil report.
- Juniper Hotels submits DRHP to Sebion September 30, 2023 at 12:52 AM
The company proposes to use the net proceeds of ₹1,500 crore towards repayment of outstanding borrowings availed by the company and its subsidiaries and for general corporate purposes.
- Capital Small Finance Bank files papers for IPOon September 30, 2023 at 12:48 AM
Nuvama Wealth Management, DAM Capital Advisors, and Equirus Capital are the book-running lead managers of the issue.
- JSW Infrastructure IPO share allotment expected on Friday. Here’s how to check the statuson September 29, 2023 at 3:25 PM
On the allotment date, investors get to know about the number of shares allotted to them as against the bids made. They can check the allotment status through the BSE or by visiting the registrar’s website. Here’s how you can check the status on BSE
- Dee Development Engineers, Capital SFB and CJ Darcl Logistics file draft papers to launch IPOson September 29, 2023 at 2:08 PM
Dee Development Engineers is an engineering company providing specialized process piping solutions for industries such as oil and gas, power (including nuclear), chemicals and other process industries
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.
