About IPO
IPO is a process by which private companies go public for the first time and their shares are listed (open for buying and selling) in the stock market. IPO helps investors get the first mover advantage and also assists companies to assess their net worth in the primary market.
Benefits of IPO to Investors
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Opportunity to invest in new companies or startups, otherwise not accessible to general public
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Allows buying shares at a discount to the market price (post listing)
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Possibility of significant listing gains, especially in IPOs of high growth companies
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Absolute transparency with all critical information available in the draft red herring prospectus.
Who can invest in IPO?
While any individual can invest in IPO, there are three distinct categories of IPO investors:
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Institutional investors or Qualified institutional investors
Commercial banks, mutual fund houses, pension funds, foreign portfolio, trusts, etc. QII allotment is capped at 50% by SEBI.
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High networth investors
Non-Qualified institutional investors with net worth of more than ₹2 lakhs. Allotment for HNIs is capped at 15% of the overall subscription.
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Retail investors
Investors with net worth of less than ₹2 lakhs. Minimum allotment capped at 35%.
How to apply for IPO @
How to enhance chances of IPO allotment?
News
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JNK India IPO subscribed 1.03 times
The initial public offer (IPO) of JNK India received 1,14,14,556 bids for shares as against 1,10,83,278 shares on offer, according to stock exchange data at 17:00 IST on Wednesday (24 April 2024). The issue was subscribed 1.03 times.
The issue opened for bidding on Tuesday (23 April 2024) and it will close on Thursday (25 April 2024). The price band of the IPO is fixed at Rs 395 to Rs 415 per share. An investor can bid for a minimum of 36 equity shares and in multiples thereof.
The offer comprises of a fresh issue of equity shares of Rs 300 crore and an offer for sale (OFS) of up to 84,21,052 equity shares from the promoter selling shareholders and individual selling shareholders.
Of the net proceeds from the fresh issue, about Rs 262.69 crore will be utilized for funding working capital requirement and balance towards general corporate purposes. The selling shareholders will be entitled to the proceeds from the OFS (net of its portion of the offer-related expenses). The company will not receive any proceeds from the OFS.
As on 31 January 2024, its borrowings were Rs 157.06 crore on a consolidated basis.
Ahead of the IPO, JNK India on Monday, 22 April 2024 raised Rs 194.84 crore from anchor investors. The board allotted 46.94 lakh shares at Rs 415 each to 19 anchor investors.
JNK India manufactures heating equipment such as process-fired heaters, reformers, and cracking furnaces required in process industries such as for oil and gas refineries, petrochemical and fertilizer industries. Over the years, the company diversified into flares and incinerator systems and has been developing capabilities in the renewable sector with green hydrogen.
The firm reported a net profit of Rs 46.21 crore and sales of Rs 253.39 crore for the nine months ended on 31 December 2023.
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JNK India IPO subscribed 49%
The initial public offer (IPO) of JNK India received 53,86,212 bids for shares as against 1,10,83,278 shares on offer, according to stock exchange data at 17:00 IST on Tuesday (23 April 2024). The issue was subscribed to 0.49 times.
The issue opened for bidding on Tuesday (23 April 2024) and it will close on Thursday (25 April 2024). The price band of the IPO is fixed at Rs 395 to Rs 415 per share. An investor can bid for a minimum of 36 equity shares and in multiples thereof.
The offer comprises of a fresh issue of equity shares of Rs 300 crore and an offer for sale (OFS) of up to 84,21,052 equity shares from the promoter selling shareholders and individual selling shareholders.
Of the net proceeds from the fresh issue, about Rs 262.69 crore will be utilized for funding working capital requirement and balance towards general corporate purposes. The selling shareholders will be entitled to the proceeds from the OFS (net of its portion of the offer-related expenses). The company will not receive any proceeds from the OFS.
As on 31 January 2024, its borrowings were Rs 157.06 crore on a consolidated basis.
Ahead of the IPO, JNK India on Monday, 22 April 2024 raised Rs 194.84 crore from anchor investors. The board allotted 46.94 lakh shares at Rs 415 each to 19 anchor investors.
JNK India manufactures heating equipment such as process-fired heaters, reformers, and cracking furnaces required in process industries such as for oil and gas refineries, petrochemical and fertilizer industries. Over the years, the company diversified into flares and incinerator systems and has been developing capabilities in the renewable sector with green hydrogen.
The firm reported a net profit of Rs 46.21 crore and sales of Rs 253.39 crore for the nine months ended on 31 December 2023.
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BSE SME IPO of Shivam Chemical subscribed 95%
The initial public offer (IPO) of Shivam Chemical received bids for 43,77,000 shares as against 45,87,000 shares on offer, as per BSE data as of 17:00 hours on Tuesday, (23 April 2024). The issue was subscribed 0.95 times.
The issue opened for bidding on Tuesday, (23 April 2024) and it will close on Thursday, (25 April 2024). The price of the IPO is fixed at Rs 44 per share. The minimum order quantity is 3,000 equity shares. The equity shares will list on BSE?s SME platform.
The IPO comprises fresh issue of 45,87,000 equity shares. The promoter and promoter group shareholding will dilute to 73% from 100% Pre-IPO.
About 2,31,000 equity shares will be reserved for subscription by market maker to the issue. The net issue comprises of 43,56,000 equity shares. The issue and the net issue will constitute 27.00 % and 25.64% respectively of the post offer paid up equity share capital of the company.
The company intends to utilize the net proceeds to funding working capital requirements of the company, investment in subsidiary company, Shivam Chemicals & Minerals for financing the augmentation of its working capital capabilities and general corporate purposes.
Shivam Chemicals is a manufacturer of Hydrated Lime (Calcium Hydroxide) and a distributor of various animal feed products, including Poultry Feed Supplement (MBM), Di-Calcium Phosphate (Feed Grade), Magnesium Oxide, and Limestone Powder. They have built a strong network of distributors across India, supplying over 2.5 lakh metric tons of products to well-renowned manufacturers. As on 31 December 2023 the company has 25 employees.
The company recorded revenue from operations of Rs 106.93 crore and net profit of Rs 0.70 crore for the period as on 31 December 2023.
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Vodafone Idea FPO subscribed 6.36 times
The follow-on public offer (FPO) of Vodafone Idea was subscribed 6.36 times on the third day of bidding. As on 17:00 IST on Monday (April 22), the issue received bids for 80,11,82,98,458 equity shares against the issue size of 12,60,00,00,001 equity shares.
The portion reserved for retail individual investors (RIIs) was subscribed by 91% with bids of 5,76,38,65,052 equity shares against offered 6,30,00,00,000 equity shares.
Meanwhile, the portion reserved for qualified institutional buyers (QIBs) has received bids for 63,21,05,38,776 shares, implying a total subscription 17.56 times. The non-institutional investors (NII) category has been subscribed by 4.13 times, recording bids for 11,14,38,94,630 shares.
The FPO consists of fresh issuance of equity shares for an amount aggregating to Rs 18,000 crore.
The price band for the offer was fixed at Rs 10-11 per share and the minimum bid quantity is 1,298 shares. The issue opened for public participation on 18 April 2024, and it will close on 22 April 2024.
The company proposes to utilize the net proceeds from the issue for purchase of equipment for the expansion of our network infrastructure by setting up new 4G sites, expanding the capacity of existing 4G Sites and new 4G sites and setting up new 5G sites; payment of certain deferred payments for spectrum to the DoT and the GST thereon; and for general corporate purposes.
Before the FPO, the Promoter and Promoter Group held 48.75% stake in the company. Post-FPO, the Promoter holding would come down to 36.87%.
Ahead of the FPO, the company on 17 April 2024 raised Rs 5,400 crore from 74 anchor investors by finalizing the allocation of 491 crore shares under anchor portion at a price of Rs 11 apiece.
The investors include GQG Partners, Fidelity Investments, UBS Fund Management, Jupiter Fund Management, and Australian Super, besides Indian investors such as India Infoline, Motilal Oswal, HDFC Mutual Fund, SBI General Insurance and Quant.
Vodafone Idea is an Aditya Birla Group and Vodafone Group partnership. It is amongst India's leading telecom service provider. The company provides pan India voice and data services across 2G, 3G and 4G platforms. The company holds large spectrum portfolio including mid band 5G spectrum in 17 circles and mm Wave 5G spectrum in 16 circles.
The telecom service provider reported a consolidated net loss of Rs 6,985.9 crore in Q3 FY24 as compared with a net loss of Rs 7,990 crore in Q3 FY3. Revenue from operations increased marginally to Rs 10,673.1 crore in Q3 FY24 as against Rs 10,620.6 crore posted in Q3 FY23.
Shares of Vodafone Idea shed 0.23% to end at Rs 12.89 on the BSE today.
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BSE SME IPO of Varyaa Creations subscribed 66%
The initial public offer (IPO) of Varyaa Creations received bids for 8,92,000 shares as against 13,40,000 shares on offer, as per BSE data as of 17:00 hours on Monday, (22 April 2024). The issue was subscribed 0.66 times.
The issue opened for bidding on Monday, (22 April 2024) and it will close on Thursday, (25 April 2024). The price of the IPO is fixed at Rs 150 per share. The minimum order quantity is 1,000 equity shares. The equity shares will list on BSE?s SME platform.
The IPO comprises fresh issue of 13,40,000 equity shares. The promoter and promoter group shareholding will dilute to 72.02% from 100% Pre-IPO.
About 70,000 equity shares will be reserved for subscription by market maker to the issue. The net issue comprises of 12,70,000 equity shares. The issue and the net issue will constitute 27.97% and 26.51% respectively of the post offer paid up equity share capital of the company.
The company intends to utilize the net proceeds to finance the establishment of the new showroom, capital expenditure cost for the proposed new showroom, purchase of inventory for the proposed new showroom, purchase of inventory and general corporate purposes.
Varyaa Creations engaged in the wholesale trade of gold, silver, precious stones, and semi-precious stones. The company utilizes job workers located in Mumbai for their jewellery production. Their product portfolio encompasses necklaces, earrings, tops, rings, bracelets, bangles, gemstones (including diamonds, lab-grown diamonds, and pearls), and they offer customization options to cater to specific customer requests. The company will sell its products through its own online platform, www.bauleberry.com. As on 31 March 2024, the company has 8 employees.
The company recorded revenue from operations of Rs 17.18 crore and net profit of Rs 3.51 crore for the period as on 31 December 2023.
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