IPO News , Upcoming IPO Issues in India
Initial Public Offerings (IPOs) have been a key source of funds for listed and unlisted
companies in India for a long time. The IPO market is where unlisted companies can
raise funds through equity and list their shares in the stock market. IPO market
is also where existing listed companies (especially PSUs) can get listed through
an offer-for-sale (OFS). There is a key difference between a new issue and an OFS.
An OFS does not result in increase in the equity base; it only results in shifting
of ownership. A new issue, on the other hand, entails the issue of fresh capital.
The IPO News section helps you to know the key IPO news pertaining to the primary
market and also prepare your investment timetable based on the Upcoming IPO issues
How does the IPO market work in India?
The typical IPO process in India begins with the appointment of investment bankers.
The company and the investment banker work out the modalities of the IPO based on
the size of corpus to be raised. Once the pre-issue formalities are completed, the
date for the IPO is finalized. The issue is kept open for a period of 3-4 days after
which the allotment of shares is done based on the extent of oversubscription. Once
the shares are allotted, the new shares are normally listed on the stock exchange
within a period 7-8 days from the closure of the IPO issue. The IPO opening is marked
by a formal bell ringing ceremony at the stock exchange after which the stock is
traded on the normal secondary markets.
Why is IPO News so important for investors?
The success of any IPO largely depends on the response from 3 classes of investors.
The retail investors (who invest less than Rs.2 lakh) represent the retail demand
for the IPO. The non-retail investors (who invest more than Rs.2 lakh) represent
the HNI and corporate demand for the IPO. It is this segment that typically depends
on IPO funding and for them the extent of oversubscription and the listing price
becomes very important. Lastly, there are the Qualified Institutional Buyers (QIBs)
which are the large institutional investors like FIIs, Mutual Funds, Insurance Companies,
Sovereign Funds etc. The IPO news flow on the subscription details of past IPOs
and the timetable of future IPOs becomes critical input for all 3 categories of
IPO News Page – How to make the best of it?
The IPO News page is a comprehensive coverage of everything you need to know about
IPOs. LKP provides a comprehensive section consisting of review of past IPOs, timetable
of forthcoming IPOs, IPO news pertaining to allotment/subscription, post –listing
price performance etc. This provides investors with a comprehensive view of the
IPO. Over the last 30 years, IPOs have emerged as a distinct asset class within
equities, which his seen by investors as more transparent and less risky.
The IPO News Page on LKP and the list of upcoming IPO issues in India are intended
as a one-stop guide for all your IPO needs; pre-IPO, during IPO and post-IPO.