In 2021, we are witnessing a wave of IPOs in the market. While some of the companies are part of our daily lives such as Zomato, IRCTC, and others, others are not that much popular yet.
In the first half of 2021, we came across some of the most popular IPOs in India were Zomato, Comstar, IRFC, PowerGrid InVit, and others. In this half of the year, there are a lot more in the pipeline as well.
However, before getting into individual IPOs which are on their way, let us discuss IPO in brief.
To know in detail about the latest upcoming IPOs, .
What is IPO?
IPO stands for Initial Public Offering which means the first instance of selling shares of a company to the general public. An IPO is usually done for raising funds for working capital, expansion, debt repayment, acquisition, and other purposes.
A company coming up with an IPO means it is becoming a public enterprise from a private one. Thus, often an IPO is referred to as "going public". Investors who are interested in buying the shares of the particular company can apply for the same by filling up the IPO application. They need to do the same through a broker or a bank with which the IPO is taking place or associated with.
Things to know about an IPO
Stock Exchange: When a company comes up with its IPO, it means the company is listing its shares on the stock exchanges of India - NSE or BSE.
Issue Size: It is the total amount of the IPO issue or the value of the IPO. It is derived by multiplying the total number of shares offered by the issue price.
IPO Open Date and Issue Close Date: IPO Open Date is the date on which the investors can start applying for the IPO. On the other hand, the Issue Close Date is the date on which the bidding gets closed. These two dates are crucial for anyone who is looking to invest in any of the upcoming IPOs.
Lot Size: When you are applying for an IPO, you need to understand that you have to buy as per lot size. Suppose, lot size is 500 then you have to apply for at least 500 shares and in multiples of the same.
Issue Price: This is the price per share. It can be either a fixed price bid or it can be done through the book-building process. The book-building process refers to bidding within a definite price range. For instance, an IPO is following book building process and the price range is Rs. 200 - Rs. 250. So, you have to bid a price within the range.
Five upcoming IPOs
1. LIC: India's biggest IPO launch is around the corner. The value of the IPO is close to Rs. 7000-8000 crores. It will be launched in 2021 as per recent updates.
2. Paytm: As you may know this is a fintech company in India and one of the most popular ones as well. It is coming up with its IPO in October 2021 (tentatively). The issue size will probably be around Rs. 160 billion.
3. Utkarsh Small Finance Bank: This small finance bank has applied with SEBI for an IPO worth Rs. 1350 crore. The primary issue will be Rs. 750 crores and then the remaining Rs. 600 as an offer for sale. The tentative issue date of this IPO is also October 2021.
4. Sterlite Power: TheDRHP has been filed with SEBI for an IPO of Rs. 1250 crores. It is a power transmission company having 25 projects running, spanning over 13000 circuit km.
5. Keventer Agro: Keventer Group's Keventer Agro is coming up with an IPO of Rs. 800 crores. The present turnover of the company is around Rs. 1000 crores.
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( With inputs from ANI )
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