#pre ipo companies in india

[lunamehta]

Want to Invest in Unlisted Companies

If you want to invest in unlisted companies then content Planify. Planify will provide you best assets and also recommend where you can invest for a good return.

[suhaliyaqureshi]

Special Purpose Acquisition Companies (SPACs) and Their Relevance to Indian Firms

Special Purpose Acquisition Companies, or SPACs, have become a buzzword in global financial markets. As an innovative way to take companies public, SPACs offer a faster and more flexible alternative to traditional Initial Public Offerings (IPOs). While the model has gained significant traction in the United States, it presents a unique opportunity for Indian firms looking to expand and raise capital abroad. However, challenges related to regulatory frameworks and market risks still persist. This blog explores what SPACs are, their advantages, and how they might fit into the Indian corporate landscape.

What is a SPAC?

A SPAC is essentially a “blank-check” company with no commercial operations. Its sole purpose is to raise funds through an IPO to merge with a private company, allowing the target company to become publicly listed without going through the traditional IPO process. Investors buy into a SPAC based on the expertise of its sponsors, trusting them to identify and acquire a promising target. If no acquisition takes place within a set timeframe (usually 24 months), the SPAC must return the money to investors.

Key Characteristics of SPACs:

Speed and efficiency: Companies can become publicly listed faster than via a standard IPO.

• Lower regulatory scrutiny: SPAC mergers avoid much of the red tape associated with IPOs.

• Pre-negotiated valuations: Target companies can negotiate valuations with the SPAC sponsors rather than relying on fluctuating market conditions.

The Global Rise of SPACs

SPACs became especially popular in 2020 and 2021, accounting for nearly half of all IPOs in the United States during that period. Successful companies like Virgin Galactic and DraftKings used SPACs to go public, paving the way for others to explore this model. Investment banks, venture capitalists, and private equity firms have embraced SPACs as a quick, lucrative way to introduce companies to public markets.

Why SPACs gained momentum:

1. Volatile markets: During periods of market uncertainty, SPACs offer companies more predictability in terms of valuation and timeline.

2. Demand for faster capital access: Startups and high-growth firms, particularly in sectors like technology and healthcare, found SPACs an attractive way to secure investments.

The Relevance of SPACs for Indian Firms

Indian firms, especially those in technology, fintech, renewable energy, and pharmaceuticals, are increasingly eyeing global markets. SPACs offer a convenient way for these firms to list abroad, particularly on exchanges such as the NASDAQ or the New York Stock Exchange (NYSE).

Advantages of SPACs for Indian Firms:

1. Global Market Access: Companies looking to expand internationally can benefit from SPACs by gaining a listing on prestigious foreign exchanges.

2. Flexible Valuation Models: Indian startups and unicorns often find it challenging to secure favorable valuations through traditional IPOs. SPACs offer them the opportunity to negotiate more favorable terms.

3. Capital for Growth: Indian firms in growth-intensive sectors can leverage SPAC mergers to secure quick funding for global expansion.

Challenges Indian Firms May Face

While SPACs hold immense potential, Indian companies encounter several regulatory and market barriers in leveraging this route effectively:

1. Regulatory Uncertainty: The Securities and Exchange Board of India (SEBI) has yet to create clear guidelines on SPAC transactions, adding a layer of uncertainty for companies and investors.

2. Foreign Exchange and FEMA Regulations: Indian firms must navigate the complexities of Foreign Exchange Management Act (FEMA) regulations to raise capital abroad.

3. Speculative Nature of SPACs: Not all SPACs find suitable acquisition targets, leading to market skepticism and reputational risks.

Examples of Indian Companies Exploring SPACs

Some Indian firms have already started testing the SPAC model. For instance, ReNew Power, a leading renewable energy company, merged with a U.S.-based SPAC to get listed on the NASDAQ. This case shows that Indian firms, especially in industries aligned with global trends like sustainability, can find success through SPAC mergers.

In addition, startups in the tech and digital economy sectors are increasingly considering SPACs to bypass the lengthy regulatory processes involved in listing on Indian exchanges. However, SEBI’s reluctance to recognize SPACs domestically means these companies currently need to explore foreign exchanges for listings

What Lies Ahead: Will SPACs Become a Mainstay in India?

As Indian companies continue to expand globally, SPACs offer an alternative path to raise capital and build international credibility. If SEBI introduces SPAC-friendly regulations, India could see a surge in SPAC-based listings—both domestically and internationally. Additionally, financial hubs such as Singapore and Hong Kong are emerging as attractive venues for SPAC deals, offering Indian firms new avenues for public listings.

Conclusion

SPACs present a promising yet challenging opportunity for Indian firms looking to expand and raise capital in global markets. With advantages such as flexible valuations, quicker listings, and access to foreign capital, this model can benefit high-growth Indian companies in technology, healthcare, and renewable energy. However, regulatory uncertainties and market risks need to be addressed for Indian firms to fully capitalize on this trend.

As the world watches the evolution of SPACs, Indian firms and regulators must adapt to these changing dynamics. With the right policies in place, SPACs could become a pivotal part of India’s global corporate strategy.

By understanding and engaging with this evolving financial mechanism, Indian firms can position themselves for success in global markets. As you build your corporate law portfolio, tracking these trends will showcase your knowledge of innovative legal and financial strategies—an essential skill for future corporate lawyers.

[arpitfy]

OYO Unlisted Shares as an Investment Opportunity: A Comprehensive Analysis

OYO, officially known as Oravel Stays Limited, has emerged as one of India’s most prominent hospitality chains, offering budget-friendly accommodation options across the globe. The company, founded in 2013 by Ritesh Agarwal, has expanded its reach to over 80 countries and operates thousands of properties. With its massive growth trajectory and strong market presence, OYO has become a topic of interest among investors, especially those looking to invest in OYO unlisted shares or participate in its potential IPO. This article delves deep into OYO as an investment opportunity, focusing on its financials, market positioning, and the potential of OYO pre IPO shares to deliver significant returns.

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[bharatunlisted]

Bharat Unlisted- The best space to Buy and Sell Unlisted Shares in India Unlisted shares are gaining popularity among Indian investors for early access to high-growth companies pre-IPO. we offer the potential for high returns, portfolio diversification, and first-mover advantage. Platforms like Bharat Unlisted simplify buying and selling with curated company lists, transparent pricing, and expert support. While risks like liquidity and pricing volatility exist, thorough research and guidance from reliable platforms make investing in unlisted shares a rewarding option.

[altiusinvestech]

Investing in Swiggy Unlisted Shares: Growth Prospects in the Food Tech Industry

One of the leading food tech companies in the country, Swiggy has been known to be a major player in the sector of online food delivery. It had its inception in 2014, and soon after it expanded into quick commerce with offerings like Instamart, which has diversified its revenue streams as well as increased the market footprint. With an upcoming IPO anticipated by the end of the year 2024, the demand for the unlisted shares of Swiggy has surged, making it a popular choice for pre-IPO investors.

Current Financial Performance and Valuation

1) Revenue and Losses

Swiggy reported revenues of Rs 5,476 crore in 2024, reflecting a 58% increase from the previous year. However, its losses remain substantial, at around Rs 1,600 crore in 2024. Despite these losses, Swiggy's valuation reached $14.74 billion as of June 2024, with an IPO target of $15 billion​.

2) Pre-IPO Share Price

Swiggy's unlisted shares have been trading actively, with prices rising from ₹350 to ₹460-₹450 per share amid the IPO buzz. This increase signals investor confidence, driven by the company's growth trajectory and potential market performance post-IPO.

3) Market Dynamics

The food tech industry is witnessing robust growth, with Swiggy capturing 43% of the Indian market. Swiggy’s quick-commerce arm, Instamart, has also become a key driver, positioning the company well against competitors like Blinkit​ and Zomato.

Buy Swiggy Unlisted Shares from Altius Investech!

Prospects of Investment

1) Potential for high returns

The demand for Swiggy's unlisted shares is due to the anticipation of an impressive IPO performance, which is similar to the performance of its competitor Zomato. Early investors stand to benefit greatly in the form of capital gain, especially when the company's valuation matches or exceeds expectations following the listing of Altius Investech.

2) Growth Strategy

Swiggy's expansion into other services than food delivery, including grocery deliveries (Instamart) along with express delivery (Swiggy Genie), has improved their business plan. The diversification approach could assist Swiggy gain a larger market share, increasing its revenue streams, and increasing overall profitability over the long run.

You Can Also Read Our Other Blogs

Zomato vs Swiggy: A Detailed Comparison of India’s Leading Food Delivery Giants

Unveiling Swiggy: A Comprehensive Overview of India’s Prominent Food Delivery Platform

3) Risks to be Considered

Despite its promising growth, Swiggy has yet to gain profitability and this could affect its value post-IPO. The company's cash burn and negative financial bottom line pose serious issues, particularly in a market that is volatile. Investors need to weigh these concerns against potential gains, taking into consideration the potential gains in the short term from the IPO as well as the long-term potential growth

Final Thoughts

Despite the high risks, it could be a very rewarding opportunity to be investing in Swiggy Unlisted Shares, as it is driven by strong market interest, alongside the company’s extended offerings of service. However, prospective investors should consider the ongoing losses of the company too. Additionally, they should also look at the competitive dynamics of the food tech industry.

Thorough due diligence and consideration of personal risk tolerance are important considerations before making investment decisions. If you are keen to explore this investment further, then consulting a financial advisor, and staying updated on Swiggy’s IPO timeline and market developments remain advisable.

[financesaathi]

John Cockerill India Secures Major Contract from ArcelorMittal Calvert LLC

John Cockerill India Limited has recently announced a significant milestone in its journey as a leading player in the engineering sector by securing a major contract valued at ₹103 crores. This contract has been awarded by ArcelorMittal Calvert LLC, one of the largest steel manufacturing companies globally. The contract has been assigned to John Cockerill India by its international subsidiary, John Cockerill Industry North America Inc., which operates as a fellow subsidiary within the John Cockerill group. This transaction exemplifies the company's expanding footprint in international markets and reinforces its commitment to delivering high-quality engineering services.

Nature of the Contract

The contract encompasses a comprehensive scope of services, including the overall detailed engineering of an Annealing and Pickling Line. This includes the supply of terminal equipment, pre-assembly of refractory materials, the supply of annealing furnaces, and the provision of associated hydraulic and lubrication systems. The execution of this contract will ensure that the new CCL (Cold Coiling Line) is operational by the end of September 2027. This timeline underscores the urgency and importance of this project in enhancing production capabilities for ArcelorMittal.

The international nature of this contract highlights the growing collaboration between Indian companies and global entities, showcasing the expertise and reliability of Indian engineering firms on a worldwide platform. Such contracts not only contribute to the revenue growth of the companies involved but also foster international business relationships that can lead to future opportunities.

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[sanjana-s]

 Investment Company in India: Unlocking Financial Growth and Stability

India’s dynamic economy offers fertile ground for investments across various sectors. As investors seek diversified returns, investment companies in India provide a gateway to wealth generation through innovative financial strategies. These firms manage portfolios of assets, giving investors access to opportunities in equities, debt instruments, real estate, and more. In this article, we explore how Indian investment companies are reshaping the financial landscape and how investors can capitalize on this evolving market.

 What is an Investment Company?  

An investment company is an entity engaged in managing funds and portfolios for clients, helping them earn sustainable returns. These firms collect funds from individual or institutional investors and invest in diverse assets, including stocks, government bonds, fixed deposits, mutual funds, and alternative assets. Their role is not limited to investments but also includes providing advisory services and designing customized financial products to meet varying investor goals.

 Benefits of Investing Through Investment Companies  

 1. Expert Financial Management  

Investment companies in India employ experienced professionals who leverage market insights to optimize returns. Their in-depth analysis and monitoring ensure that investments are aligned with changing market conditions.

 2. Portfolio Diversification  

By investing through these firms, investors can diversify across sectors and asset classes, minimizing risk. This reduces the impact of market volatility on individual portfolios.

 3. Access to Exclusive Opportunities  

Investment firms often offer exclusive opportunities such as IPO allocations, pre-IPO shares, or high-yield NCDs, which are otherwise difficult for retail investors to access.

 4. Liquidity and Transparency  

Many investment companies ensure liquidity by allowing investors to redeem their investments easily. Additionally, they maintain transparency through regular reports and updates.

 Top Investment Companies in India  

Several companies in India have built a reputation for delivering robust returns and excellent customer service. Here are a few leading players in the space:  

- HDFC Asset Management Company – Specializes in equity and hybrid funds  

- ICICI Prudential AMC – Known for its balanced mutual fund offerings  

- GHL India Assets – A cutting-edge fintech investment platform generating recession-proof income and financial freedom for investors  

- Aditya Birla Capital – Offers a wide range of financial services, including mutual funds and insurance products

 Conclusion  

Investment companies in India provide a gateway for investors to grow their wealth through a range of financial products and services. By offering diversified portfolios, expert management, and access to exclusive opportunities, these firms help individuals and institutions achieve their financial goals. Whether you are looking for steady returns through debt instruments or high-growth opportunities in equity and alternative assets, partnering with the right investment company can make all the difference.  

[riverwoodcapital1]

Star Investors, Strong Financials Among Highlights

Vikran Engineering, a prominent engineering, procurement, and construction (EPC) player, has filed its draft red herring prospectus (DRHP) with the Securities and Exchange Board of India (SEBI) to raise INR 1,000 crore through an initial public offering (IPO). Vikran Engineering IPO filing comes on the heels of significant pre-IPO investments and robust revenue growth, positioning the company as…

[johnthejacobs]

Manjushree Technopack Share Price Heating Up

The Manjushree Technopack Share Price has lately been rising by leaps and bounds. So much so that it is the talking point of investors and analysts alike. This article will go to great lengths to touch upon a host of factors that contribute to this surge: the business model of this company, its market position, and general economic trends impinging on its recent success.

Introduction to Manjushree Technopack

Over the last several decades, Manjushree Technopack has been the prime mover of packaging solutions providers in India. It is a company manufacturing rigid plastic packaging products for categories of FMCG, Pharmaceuticals, Beverages, and other diversified industries. Being highly focused on innovation, quality, and sustainability, the company strives toward maintaining a strong portfolio and a wide client base, comprising a number of global brands. The interest in the Manjushree Technopack Unlisted Shares has grown of late, which is a good sign that investors believe the company will accomplish growth.

Performance in the Stock Market Recently

Manjushree Technopack Ltd.'s share price has been outstandingly outperforming markets over the last few months, which has arisen due to its continuously strong financial performance, strategic acquisitions, and favorable market conditions. An increasing talk related to a Manjushree Technopack Pre IPO has attracted possibilities, and the investor confidence factor has been increasingly demonstrated by an increase in share prices.

Key Drivers to the Share Price Rally

1. Strong Financial Performance

The key reasons that primarily drove the share price of Manjushree Technopack were on account of its sterling financial performance. The company has persistently posted very strong earnings, wherein its revenue growth had been steady while the profit margins were healthy. The reason behind it was its efficiency in managing the cost structure properly, and in this process, it ensured better optimization of production processes and leveraging economies of scale.

2. Strategic Acquisitions and Expansions

Manjushree Technopack has been at the forefront in increasing its market presence by way of strategic buyouts and alliances. Acquisition of its rival firms and entry into newer markets had further consolidated its position in the packaging industry. At the same time, these strategic moves have resulted in more market share, knitting its offerings to a broad range of clients.

3. Agenda on Sustainability and Innovation

It was one of the factors that made Manjushree Technopack take a lead over competition in this world moving fast towards sustainability. Investments were put in research and development to formulate innovative, sustainable packaging products that suited the changed consumer and the regulatory demand. Some, once again, appeal to the sense of being environmentally conscious investors and thus further boost the value of the stock.

4. Growing Demand from the Packaging Industry

Packaging is one global industry that has throve, basically, because of an upward growth trend in the final demand side by consumers. With consumers increasing their spending on food and beverages, this company has been right at the epicenter of this growing trend. One company that had been able to cash in on the rising demand for new-age, innovative, and sustainable packaging solutions was Manjushree Technopack. The increasing positive market sentiment and investor confidence in the very fundamental approach of the business of Manjushree Technopack will enable the company to grow in a big way, as a substantial appreciation in its share price will result from this increased demand.

More manifold opportunities encouraged the growth in a demand for new-age, innovative, and sustainable packaging solutions, and hence there has been a substantial upsurge in the appreciation of the Manjushree Technopack share price.

The positive investor sentiment on Manjushree Technopack has been overwhelmingly vindicated by the stock price now seeing a relentless uptick. This confidence emanates from strong fundamentals, strategic vision, and capability of handling market challenges effectively. Optimism for the outlook on the packaging industry coupled with a leadership position for Manjushree Technopack justifies this stock as an investment destination for retail as well as institutional investors. As the Manjushree Technopack Upcoming IPO comes up, there will be plenty of investors lining up to tread along with it when it hits the market.

Challenges and Risks Ahead

The future outlook for Manjushree Technologies looks quite promising, though there may be a few challenges and risks that will have to be taken into account in view of its future success. Fluctuations in prices of raw materials:

The packaging industry also depends greatly on raw materials, mainly plastics, the prices of which constantly fluctuate. Any drastic change in raw material prices may hurt the business's profit margins and, in turn, the share price.

2. Changes in Regulations

The industry is one of the most heavily regulated, particularly with regard to environmental impact and sustainability. So, any change in the regulations could force Manjushree Technopack to invest substantially in new technologies or process changes in production, which could affect their profit.

3. Competition

Potential Reversal—Current Industry Trends: There is more competition in the packaging industry. As such, though Manjushree Technopack has established a strong market position, product and process innovation, and the ability to quickly adapt to change become imperatives if it has to stay ahead of the competition. I believe that loss of market share will directly impact the share price.

Conclusion: Manjushree Technopack—What Next?

This rally in the Manjushree Technopack share price attests to the strong fundamentals of the company, strategic moves undertaken for its growth, and propitious market conditions that prevail in the packaging sector. Like any other investment, though, it is not devoid of risks. Investors should be cautious about pending challenges and dynamics in the market that might affect the future performance of the said company.

With a strong history of introducing new innovation and market fronts, the company will not allow the growth run to break. For investors who need a position in the high-flying packaging space, Manjushree Technopack would be a good investment. Added to this, expectation of the Manjushree Technopack IPO has built-up interest as to how the company will perform in the public markets. This IPO shall be especially interesting to such investors who were waiting to invest in Manjushree Technopack Unlisted Shares while providing scope for new investment opportunity opened in this vibrant sector.

[arpitfy]

National Stock Exchange Pre IPO: A Golden Investment Opportunity in Unlisted Shares

The National Stock Exchange (NSE) has long been an investment giant in India’s financial ecosystem, known for its influence on the country's capital markets and economic development. With an impending IPO, many investors are eager to understand the prospects of investing in National Stock Exchange Pre IPO and National Stock Exchange Unlisted shares as a way to capitalize on its market position before the public listing. In this article, we’ll dive into what makes the National Stock Exchange IPO such an exciting opportunity, the company’s financial strengths, key business drivers, and what potential investors should consider before buying NSE shares.

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[finowing]

Interarch Building Products Sets IPO Price Band at Rs 850-900

Interarch Building Products Ltd. is launching its IPO with a price band of Rs.850 to Rs.900 per share, aiming to raise Rs.600.29 crore. This Mainboard IPO opens on August 19, 2024, and closes on August 21, 2024. The company, established in 1983, is a leader in pre-engineered steel construction solutions in India, offering comprehensive services from design to on-site project management.

With a 6.1% market share in FY2023 and an annual installed capacity of 141,000 met-tons as of March 31, 2023, Interarch Building Products is well-positioned in the PEB sector. The IPO includes a fresh issue of Rs.200 crore and an offer for sale worth Rs.400.29 crore. The listing is set for August 26, 2024, on the BSE and NSE.

Investors can participate with a minimum lot size of 16 shares. The funds raised will be used for various purposes, including the construction of a new manufacturing facility, renovation of existing plants, and upgrading IT infrastructure.

[tradeunlisted01]

Unleashing the Potential of Unlisted Shares: A Comprehensive Guide

Understanding Unlisted Shares

Unlisted shares, also known as unlisted equity or pre-IPO shares, are securities issued by companies that are not traded on public stock exchanges like the BSE or NSE. These shares offer investors the unique opportunity to invest in promising startups and growing businesses before they go public.

Key Characteristics of Unlisted Shares:

Limited Liquidity: Unlisted shares are less liquid than listed shares, meaning they can be harder to buy or sell quickly.

Direct Purchase: You typically buy unlisted shares directly from the company, intermediaries, or specialist brokers.

Potential for High Returns: Early investment in unlisted shares can offer significant returns if the company performs well and eventually goes public.

Benefits of Investing in Unlisted Shares:

Early Access to Growth: Invest in promising companies before their value skyrockets.

Reduced Market Volatility: Avoid the day-to-day fluctuations of listed stocks.

Higher Potential Returns: Capitalize on the growth potential of early-stage companies.

Diversification: Expand your investment portfolio beyond traditional listed stocks.

Promising Unlisted Shares in India:

OYO: A leading hospitality company known for its budget hotels and rental spaces.

India Potash Ltd.: A key player in the agricultural sector, specializing in potash-based fertilizers.

NSDL: A significant institution in the Indian financial market providing depository services.

Bira 91: A popular craft beer brand with a strong presence in India.

Tata Capital: A financial services provider offering loans, investments, and asset management.

How to Start Investing in Unlisted Shares:

Research: Thoroughly investigate companies you're interested in, including their business model, financials, and management team.

Choose a Reliable Intermediary: Work with a reputable broker or platform that specializes in unlisted shares.

Understand Risks: Be aware of the potential risks involved, such as limited liquidity and valuation uncertainty.

Diversify: Spread your investments across multiple unlisted companies to manage risk.

FAQs:

Are unlisted shares the same as unlisted equity? 

Yes, they are synonymous terms.

Is it safe to invest in unlisted shares in India?

 Investing in unlisted shares involves risks, but with proper research and due diligence, it can be a rewarding opportunity.

Is it legal to buy unlisted shares? 

Yes, it is legal to buy unlisted shares in India. However, ensure you're dealing with reputable intermediaries.

[altiusinvestech]

Investing in Ixigo Unlisted Shares: What You Need to Know Before You Buy

Ixigo, a leading travel tech company in India, operates under its parent company, Le Travenues Technology. It provides a wide range of services, including booking options for flights, trains, buses, and hotels. As it prepares for its Initial Public Offering (IPO), investing in Ixigo’s unlisted shares has gained traction among pre-IPO investors.

Financial Performance and Growth

In the first nine months of 2024, Ixigo recorded a profit of Rs 68 Crores, tripling its previous fiscal year’s profit of Rs 23 Crores. This was driven by a strong revenue of Rs 491 Crores, reflecting its dominance in the travel aggregation space.

Ixigo achieved a significant turnaround, moving from a loss of Rs 21 Crores in 2022 to profitability in 2023 and beyond, demonstrating its operational efficiency and strong market position.

Rising Price of Unlisted Shares

Price Surge in 2024: The price of Ixigo's unlisted shares rose from Rs 100 in December 2023 to Rs 150 by March 2024, spurred by strong financial results and anticipation of its IPO.

Future Potential: With plans to raise Rs 1,600 Crores in its IPO, Ixigo aims to expand its services and enhance its tech infrastructure, potentially boosting its valuation further once it goes public.

Strategic Positioning in Travel Tech

1) Diverse Sources of Revenue

Ixigo can earn through various channels, including convenience fees from advertising and ticket reservations, making it less dependent on a single source of revenue.

2) Expansion and Innovation

Over the years, Ixigo has introduced various innovative features like real-time updates and fare predictions, to improve the overall user experience, and then drive engagement across the platform.

Buy Ixigo Unlisted Share from Altius Investech!

Risks Involved in Unlisted Shares

1) Risks of Liquidity 

Unlisted shares typically are less liquid, which makes it more difficult to sell them promptly compared to shares traded on the market.

2) Regulatory and Market Risks

As unlisted shares are not subject to the same rules as listed shares, they are at higher risk in relation to market movements, fluctuations, and compliance.

3) Uncertainty About IPO

Even though Ixigo has changed its “Draft Red Herring Prospectus” (DRHP), there is always the chance of delay due to market conditions, which could affect liquidity and the value appreciation of shares that are not listed.

4) Tax Implications- Capital Gains Tax

If you hold Ixigo unlisted shares for more than two years, they are subject to long-term capital gains tax, which, as per recent changes, is now taxed at a flat rate of 12.5%. This differs from the indexation benefits typically offered for listed shares.

You Can Also Read Our Other Blogs

Ixigo Receives SEBI Nod for IPO: A Promising Step Forward

Building for Bharat”: ixigo’s Journey from Rejection to Profitability

Can 6,000 Cr Ixigo Pull Off Travel’s Biggest Rollercoaster to IPO?

Can ixigo’s Frugality Playbook Show The Way In The Year Of Cockroach Startups?

Final Thoughts

Investments in Ixigo’s unlisted shares offer high growth potential, especially with its upcoming IPO. However, it comes with associated risks, such as liquidity concerns and regulatory changes. Before making any investment, ensure a thorough analysis of the company's financials and consult a financial advisor to align the investment with your risk tolerance and financial goals.

For more information, you can explore detailed insights on platforms like Altius Investech, which offer up-to-date market prices and detailed analyses of Ixigo's unlisted shares.

[gazetteweekly]

Ola Electric IPO: Prices Set at Rs 72-76 Per Share, Aiming to Raise Over Rs 6,100 Crore

Ola Electric Mobility Limited, the Bengaluru-based electric vehicle (EV) manufacturer, has announced the price band for its upcoming initial public offering (IPO). The shares will be offered at a price range of Rs 72–76 each, with the IPO set to open for subscription on August 2 and close on August 6. Investors can bid for a minimum of 197 shares and in multiples of 197 shares thereafter.

IPO Details

. Price Band: Rs 72–76 per share

. IPO Opening Date: August 2

. IPO Closing Date: August 6

. Minimum Bid: 197 shares

At the upper end of the price band, Ola Electric aims to raise Rs 6,145 crore, while the lower end targets Rs 6,111 crore. The IPO will consist of a fresh issue of up to Rs 5,500 crore and an offer for sale (OFS) of up to 8.49 crore shares worth Rs 645 crore. There is also a reservation for eligible employees.

Use of Proceeds

According to Bhavish Aggarwal, Chairman and Managing Director of Ola Electric, the proceeds from the fresh issue will be allocated as follows:

Rs 1,227.6 crore for capital expenditure by subsidiary OCT

Rs 800 crore for repayment or pre-payment of debt

Rs 1,600 crore for research and product development

Rs 350 crore for organic growth initiatives and general corporate purposes

Company Overview

Ola Electric specializes in manufacturing electric vehicles and core EV components, including battery packs, motors, and vehicle frames, at its Ola Futurefactory. The company aims to capitalize on the growing trend of EV adoption in India and plans to expand into select international markets.

Since delivering its first model, the Ola S1 Pro, in December 2021, Ola Electric has quickly become a leading electric two-wheeler (E2W) brand in India. The company has also introduced additional models, including the Ola S1, Ola S1 Air, and Ola S1 X+.

Future Plans

Ola Electric’s vertically integrated business model includes in-house R&D, manufacturing, supply chain management, and a direct-to-consumer (D2C) omnichannel distribution platform. The company plans to use its Generation 2 platform, initially developed for the Ola S1 scooter, for a new motorcycle range featuring four models: Diamondhead, Adventure, Roadster, and Cruiser.

The company’s facilities include a Futurefactory, Gigafactory, and a Battery Innovation Centre in Bengaluru, with ongoing construction of an EV hub in Tamil Nadu’s Krishnagiri and Dharmapuri districts.

As Ola Electric prepares for its IPO, the company’s focus on innovation and expansion continues to position it as a key player in the EV industry.

[optionperks]

IPO Investment : What It Is and How Does It Work

From fintech and logistics to food-tech and apparel, companies across a diverse range of sectors have launched their Initial Public Offerings (IPOs) in recent times. In 2023 too, the IPO pipeline is robust, with some highly anticipated IPOs likely to be launched soon.

If you are keen on investing in IPOs, but don’t know how to begin, then we have got you covered!

In this article, we will help you get a basic understanding of IPOs:

What is an IPO

Why Does a Company go in for an IPO

How Does an IPO Work

Key IPO Terms to Know

How to Invest in an IPO

Note that for IPO investment, you need to have a Demat account.

Open a Demat account with PL within minutes, by clicking here

What is an IPO

The process through which a private company offers its shares to the public for the first time is called an Initial Public Offering. These shares are offered to investors through the Primary Market, for a specific period. After that, the company gets listed on the stock exchanges and its shares are traded in the secondary market. Simply put, an IPO is the transition from a privately held company to a publicly traded company.

Approval from the market regulator SEBI, i.e. the Securities and Exchange Board of India is mandatory before any company can launch its IPO.

There are two types of IPOs:

Fixed Price Offering: As the name suggests, in this type, the company announces the price per share of the IPO in advance. All applications and allocations will be at this pre-determined price.

Book Building Offering: Here, the company relies on a price discovery mechanism by announcing a 20% price band – comprising an upper and lower limit – for the shares. Investors can bid for the number of shares and the price they are willing to pay. Based on these bids, the final price at which the shares will be issued to the investors is determined.

Why Does a Company go in for an IPO

Opting for an IPO comes with many benefits for a company. Here’s a look at some of the key ones:

An IPO enables a company to raise funds through the capital market.

It can use this money for a variety of reasons, including expanding its business, undertaking capex, paying off debt, and so on.

When the shares are traded in the capital markets, it brings in higher liquidity and price transparency.

An IPO could increase the credibility and publicity of a company.

How Does an IPO Work

By now, you must have a basic understanding of what are IPOs and why companies prefer to go public. Now, let us take a closer look at how an IPO works.

Pre-IPO:

Once a company decides to go in for an IPO, it has to work with investment banks to chalk out all the details of the IPO. It also needs to file a Draft Red Herring Prospectus (DRHP) with the SEBI. This is also called an ‘Offer Document’ and comprises details about the company’s business, risks, why it is going in for an IPO, how the funds will be used, etc. The SEBI may ask for changes, if required, in this document.

After making these changes, and getting approval from the SEBI, the BSE and the NSE, and the Registrar of Companies (ROC), the Red Herring Prospectus (RHP), or the ‘Final Prospectus’ is filed by the company. This comprehensive document enables potential investors to make an informed decision about IPO investment.

Once approved by the SEBI, the company can launch its IPO in the primary market. The company will then announce details such as lot size, price band, and opening and closing date of the IPO.

During IPO:

Investors can apply for an IPO during a specific period.

The allotment of shares depends upon the demand for the IPO. If an IPO is oversubscribed, then the allotment happens through a computerized process, and if it’s undersubscribed, then the investors may get the shares they bid for.

On the Listing Date, the company gets listed on the stock exchanges. Whether it lists at a premium or discount to its issue price is again a result of demand for the shares.

This brings an end to the IPO process. The company is now a publicly listed company, with its shares trading in the secondary market.

Key IPO Terms to Know

For IPO Investment, here are some of the key terms you need to know:

DRHP / RHP: A comprehensive offer document that a company has to file with the SEBI, comprising details about the company’s financials, business model, risks, opportunities, and why it has decided to go public.

Floor Price: The minimum price you can choose, while applying for an IPO

Upper Limit: The maximum price you can choose, while applying for an IPO

Cut-off Price: The price at which shares get allotted to the investors

Lot Size: Minimum number of shares you need to purchase, when applying for an IPO

Listing Date: The date on which the company gets listed on the exchanges

Anchor Investors: A portion of the IPO is reserved for institutional investors, such as banks, financial institutions, mutual funds houses, etc. These are called anchor investors

Oversubscribed & Undersubscribed: If an IPO receives applications for more shares than it offered for sale, then an IPO is said to be oversubscribed. If it receives applications for fewer shares than it offered for sale, then an IPO is said to be undersubscribed