An initial public offering (IPO) is the process by which a privately held company becomes publicly traded on a stock exchange in India. Companies that go public through an IPO in India are known as “going public” companies. There are several different types of companies that list for IPOs in India, each with its own unique characteristics and considerations.
Small and midsize enterprises: Small and midsize companies in India are typically defined as those with revenues of less than INR 35 billion. These companies often go public as a way to raise capital to fund expansion or to pay off debt. Because these companies are typically smaller and less established than larger companies, they may carry a higher level of risk for investors in India.
High-growth companies: High-growth companies in India are those that are experiencing rapid expansion and have the potential for significant future growth. These companies may go public as a way to raise capital to fund their expansion plans in India. Because of their high growth potential, high-growth companies can be attractive to investors in India, but they also carry a higher level of risk.
Established companies: Established companies in India are those that have been in business for a number of years and have a track record of steady growth and profitability. These companies may go public as a way to raise capital to fund expansion or to pay off the debt in India. Because they are established and have a proven track record, established companies may be seen as less risky investments than smaller or high-growth companies in India.
Spin-off companies: A spin-off company is a company that is created when a larger company divides off a portion of its business into a separate, independent entity in India. Spin-off companies may go public through an IPO in India as a way to raise capital and become independently traded on a stock exchange in India.
In conclusion, there are several different types of companies that list for IPOs in India, including small and midsize companies, high-growth companies, established companies, special purpose acquisition companies (SPACs), and spin-off companies. Each type of company has its own unique characteristics and considerations in India, and it is important for investors to carefully evaluate the risks and potential rewards of investing in an IPO in India.
On the stock market, investors can buy and sell shares, bonds, and other types of financial assets. A stock exchange is a platform where investors and traders can buy and sell shares.
The two biggest stock exchanges in India are the Bombay Stock Exchange (BSE) and the National Stock Exchange (NSE). Also, businesses can list their shares for the first time on a market called the primary market. The shares are then bought and sold again on the secondary market.
Roles of Stock Market Participants: A stock market is a place where financial products can be bought and sold. Brokers, traders, and investors must register with SEBI, the exchange (BSE, NSE, or regional exchanges), and the companies they work for before they can trade (listing their shares).
Securities and Exchange Board of India (SEBI): SEBI is the market regulator whose main job is to make sure that the Indian stock market runs smoothly and openly so that average investors can invest without worrying. SEBI has set up rules that all exchanges, businesses, brokerages, and other participants must follow.
Stockbrokers: Members of exchanges are stockbrokers. They are the middlemen who carry out investors’ buy and sell orders in exchange for a fee. In the Indian system, investors must trade through broking houses or brokers, who act as middlemen.
Investors and traders are the two main types of people who take part in the market. When investors buy stock in a company, they want to keep it for a long time and make money from it. traders buy and sell stocks, while investors only buy and hold stocks.
Investors’ actions are influenced by the success of a company, its potential for long-term growth, dividend payments, and other similar things. On the other hand, traders are affected by price changes as well as supply and demand.
Let’s talk about the two types of markets we’ve already talked about. When you trade on the stock market, you try to match buyers and sellers. Your broker sends your offer to buy to the stock exchange, which then compares it to a seller’s offer. Once the price has been set, the exchange tells your broker that the trade is done. At that point, the transaction takes place. In the meantime, the bourse checks the information of the buyer and seller to avoid defaults. After that, the actual transfer of stocks takes place to end trading.
The process used to take days, but digitization has helped cut the time down to T+2, or within two days of the transaction, and work is being done to get it down to T+1.
September is an exciting month for the IPO market. Here are all the upcoming IPOs for this month.
Keventer Agro
The company sells a wide range of products under many different brands and categories. As of March 2021, they were involved in the value chain and had more than 90 SKUs in the fresh, frozen, and ambient long-shelf-life product categories.
The Keventer Agro IPO is made up of Rs 350 crore in new shares and 1 crore shares from existing shareholders.
Capital Small Finance Bank In 2016, Capital Small Finance Bank became India’s first small finance bank. In March 2021, it will be one of the top SBFs in terms of asset quality, cost of funds, retail deposits, and CASA deposits.
Capital Small Finance Bank has a diverse portfolio with a large book value across several types of assets. The bank has a secured loan rate of 99 percent, which is the highest among its competitors.
It’s a first public offering.
Sresta Nature Bioproducts
The business, which is based in Hyderabad, sells packaged organic goods.
The Sresta Natural Bioproducts IPO includes both new shares and shares from existing shareholders. The company plans to sell new shares to raise Rs 50 crore to cover working capital needs and pay off or repay some market loans.
Landmark Cars
The car dealership is ready to start an initial public offering (IPO) of Rs 762 crore, which will include both new shares and an offer to sell equity. The net money made from selling new shares worth Rs 150 crore would be used for general business goals and to pay back or pay off any market loans.
Tracxn Technologies Tracxn Technologies helps new businesses set up customer service that works well by giving them statistical information about their customers. The IPO offer from Tracxn Technologies is a full sale from the shareholders who already own the company.
Ola Cab
The company is one of the biggest app-driven cab services. It has 250 locations in India, New Zealand, the UK, and Australia where it helps people get around. Through the app-based business, customers can get in touch with drivers of motorcycles, e-rickshaws, cabs, and taxis.
The value of the IPO would be about Rs 1500 crore.
Elin Electronics
The company is a major player in the electronics manufacturing services (EMS) sector, with a 12 percent market share in Fiscal 2021. Manufacturers of lights, fans, and small kitchen appliances can get full product solutions from Elin Electronics. They were also the first to make motors with a fraction of a horsepower.
In the IPO, fresh shares worth Rs 175 crore and OFS stocks are put together.
Droom Technology
They run a business that makes it easier to buy and sell cars online by using technology and data science. Droom Technologies is the only company in India that offers a completely online transactional solution and has the largest selection of cars for sale online. About 1.15 million cars, bikes, and other vehicles, both new and used, are listed on their platform.
In the IPO, current shareholders can offer to sell their shares, and new issues of Rs 200 crore are also being made.
One Mobikwik System
Mobikwik is one of the largest companies that offer “Buy Now, Pay Later” services. Fintech is an important part of the field because it makes everyday mobile transactions easy and gives people the option to “buy now and pay later.”
The public offering includes both primary shares and an offer to sell.
Skanray Technologies
They are the best at making medical devices and they design, develop, manufacture, and sell high end equipment. The primary issue includes new shares worth Rs 400 crores and an offer from current shareholders to sell their shares.
Gemini Edibles and Fats
The company makes, sells, and sends out edible oils and fats. Gemini Edibles has had one of the segment’s fastest growth rates. In the south Indian states, they are the market leaders when it comes to making sunflower oil under the brand name Freedom.
Ixigo
Ixigo makes it easy to book travel, tickets, and hotels online. They help travelers make smart travel decisions by using innovations in artificial intelligence, machine learning, and data science.
The company has been given permission to start an IPO for Rs 1600 crore.
API Holdings With respect to gross merchandise value (GMV) in Fiscal 2021, they are India’s largest healthcare provider. API Holdings runs a business that is integrated from beginning to end. This lets them serve all of the stakeholders in the healthcare value chain.
Emcure Pharmaceutical
The company is one of India’s biggest pharmaceutical companies. It develops, makes, and sells drugs around the world in a number of important therapeutic areas.
Final words IPOs can be a great way to invest and give investors a chance to diversify their portfolios. But before putting money into a new company, you must do your homework and research. Invest in an initial public offering (IPO) only if you know the company and understand its value. Without doing research, investing in an IPO can be risky.
With Zebu, you can invest in IPOs that will happen in September 2022. Sign up for a free Demat account.
