All that you want to know about IPO

All that you want to know about IPO

All that you want to know about IPO

Investing in IPOs (initial public offerings) has been picked up lately. The trend is going to be here with Indian companies minting millions including the likes of Nykaa, who made its employees millionaires overnight with the listing. In the year 2021 alone, we saw nine startups to went public raising funds to the tune of $5.86 Bn. The year 2022 might see 16 startups to go public out of which two have received SEBI’s approval and five DRHPs are yet to be approved. There are quite a few Indian companies including MobiKwik, Delhivery, travel giant Ixigo, OYO, Droom to file their draft-red-herring-prospectus (DRHP). We consumers invest in IPO to get good returns. On the other hand, IPO is a similar process in which companies raise money from the market with the condition. So, what are the procedure to try one’s luck at the bourses? Let us check here.

Subas Tiwari

IPO or Initial Public Offering occurs when a company issues its common stock or shares to the public for the first time. IPO is issued by limited companies so that they can get listed on the stock exchange. After listing on the stock market, the shares of the company can be bought in the stock market. The company issues IPO to raise funding in case of investment or expansion. The two main reasons for a firm to start an IPO are to raise capital and to enrich former investors.

There are two types of IPO

  • Fixed Price IPO- Fixed Price IPO can be referred to as the issue price that some companies set for the initial sale of their shares. Investors get to know about the price of the shares which the company decides to take public. The demand for shares in the market can be ascertained after the issue is closed. If investors participate in this IPO, they must ensure that they pay the full value of the shares at the time of applying.
  • Book Building IPO- In the case of book building, the company initiating the IPO offers investors a 20 per cent price band on the shares. Interested investors place bids on the shares before the final price is decided. Here investors need to specify the number of shares they wish to buy and the amount they are willing to pay per share.

The lowest share price is known as the floor price and the highest stock price is known as the cap price. The final decision regarding the price of the shares is determined by the bids of the investors. 

Some recent examples

IPOs are ready to make the stock market buzzing in the new year as well. Companies are expected to raise up to Rs 1.5 lakh crore (IPO of 2022) from IPOs in 2022 as well, after the spurt in 2021. The IPO of the company (Ruchi Soya IPO) from Gautam Adani to Baba Ramdev is going to hit this month. Significantly, 2021 was the best year for IPO in the last two decades in the Indian market. Excess liquidity and increased participation from retail investors continued to fuel the IPO’s enthusiasm and companies raised over Rs 1.2 lakh crore this year amid the gloom of the pandemic. LIC’s IPO is also about to come.

Gautam Adani and Baba Ramdev’s companies to hit IPO

Adani Wilmar’s IPO is going to come this month, which will be around Rs 4500 crore. Ruchi Soya’s IPO of about Rs 4300 crore is also going to hit this month. Go Airlines is also going for close to Rs 3600 crore IPO. MobiKwik’s Rs 1900 crore IPO is also expected this month. Apart from these, Rs 998 crore IPO of ESAF Small Finance Bank Ltd and Rs 500 crore IPO of Traxon Technologies will also come this month. On the other hand, Skanray Technologies will have an IPO of Rs 400 crore as well as OFS. ESDS Software Limited’s IPO of Rs 332 crore is also coming with OFS.

LIC’s IPO will come this year

In the year 2022, massive fund raising through the primary market will start with a big IPO of public sector company Life Insurance Corporation (LIC). Apart from this, many new age digital players are ready to enter the IPO market. 

However, some believe that the enthusiasm will be a bit low in 2022. The market sentiment next year will be affected due to the new nature of Covid-19 and in such a situation the uncertainty is taking a toll on the markets and the economy. The 2022 IPO will not be as encouraging as 2021 for the markets, especially considering that some of the big public issues like Paytm has not done well post listing in the recent past.

Let’s know how does IPO work

IPOs can be rewarding investments. As an investor, you definitely don’t want to miss out on these opportunities that don’t present themselves all too often. Here’s what you need to know about IPOs before investing.

  • An IPO is an offer of new shares of a private company to the public for the first time. Ownership changes hands – from being entirely privately held, the company is now giving ownership to the masses
  • Not every company can afford to raise enough money from private investors. Also, going public presents other benefits than just raising capital
  • As an investor, you stand to make extremely high returns on your investment if you pick the right IPOs

Let’s get the basics right first

  • An IPO is an offer of shares by a company in exchange for capital
  • The entire process is regulated by SEBI – the Securities & Exchange Board of India
    To buy shares of any company in an IPO, you have to bid for these shares
  • If your bid is accepted, you are allotted shares. In case shares aren’t allotted in case of over subscription, you’ll get your money back
  • If you participate and buy stocks in an IPO, you become a shareholder of the company
  • As a shareholder, you can enjoy profits from sale of your shares on the stock exchange, or you can receive dividends offered by the company on the shares you hold
  • To file an IPO, companies must measure up to strictly enforced criteria and regulations to get SEBI’s (Securities Exchange Board of India) approval
  • IPO issues is open to all retail investors. Any client can apply through a broker.


Car Safety Workshop-Hyderabad 15 Sept.2017

Car Safety Workshop-Hyderabad 15 Sept.2017

Consumer VOICE, in collaboration with its state partner Consumer Awareness Research Centre  Hyderabad organized a  workshop on Car Safety on September 15, 2017 at Banjara Hills, Hyderabad.

The main objective of the programme is to spread the message that safer cars are needed on Indian roads to save the precious lives.

Mr.Krishna Reddy (Managing Trustee, CARC), welcomed the guests. In his inaugural speech he explained the need of “CAR SAFETY” and requested the guests to give the best solutions on the same.

Chief Guest was Mr.Raghunath (Joint Secretary,Transport Department, Government of Telangana State). Other guests included Mr. Ravi Mantri (Vice President, RKS motors Pvt Ltd), Mr.Vemula Gouri Shankar (Chairman CATCO), Mr.Hemant Upadyay (VOICE), Mr.A.Krishna Murty (Chairman Model Group)and dignitaries from civil society organizations and media.

Mr.Hemant Upadyay (VOICE) in his speech explained the reasons for the workshop on “Car Safety”. He also explained how VOICE as an organization is working with global organizations to reduce accidents and create awareness on Car` Safety. Later in his presentation he gave a detailed information on CAR SAFTEY.

Chief Guest Mr.Raghunath (Joint Secretary, Transport Department, Government of Telangana State) in his speech explained about Car Safety. Further he said that Telangana State is already  discussing about the new safety rules with central government. Before purchasing a car every consumer must focus on safety. Consumers should not compromise on the safety. Telangana is ready to create awareness about Car Safety with the support of Consumer Organizations. He feels that Central Government shall bring more stringent rules in Car Safety.

Mr.Ravinder (G.M Services, RKS Motors PVT LTD) also gave an important presentation.

Other guests Mr. Ravi Mantri (Vice President, RKS motors Pvt Ltd), Mr.Vemula GouriShankar (Chairman CATCO), Mr.Hemant Upadyay (VOICE), Mr.A.Krishna Murty(Chairman Model Group) also spoke about “CAR SAFETY”

Mr. Hemant Upadyay presented participation Certificates to the participants. The programme ended with a question-answer session.

Car Safety Workshop 14th September 2017 – Bengaluru

Car Safety Workshop 14th September 2017 – Bengaluru

Car Safety Workshop 14th September 2017 – Bengaluru

Consumer VOICE, in collaboration with its state partner National Law School of India Bengaluru   organized a workshop on Car Safety on September 14, 2017 at International Training Centre National Law School of India University , Bengaluru.

The main objective of the programme is to spread a message that safer cars are needed on Indian roads to save the precious lives.

A total of 47 candidates from various law colleges, car service centres and NGOs attended the workshop.

Prof. (Dr.) Ashok R. Patil introduced the topic and explained the need of manufacturing cars with safety features. He also introduced Prof. Dr. O.V. Nandimath and Shri. Hemanth Upadhayay with their brief profile. Later it was followed by self-introduction by the participants.

The subject was introduced by Hemanth Uphadhayay consumer VOICE, New Delhi. He in his speech explained how the issue of car safety has gained importance in the last 30 years. Four years back policy makers started thinking about safety of drivers, pedestrians and passengers. He further explained how the policy makers made a study to examine the safety features that are essential.

Chief Guest of the workshop Prof. Dr. O.V. Nandimath, Registrar National Law School University of India (NLSIU), Bangalore, emphasized the importance of car safety. He said for every three and half minutes a motor vehicle accident takes place in India.

He further explained how a person is compensated in case of accident i.e. compensation in no fault liability and negligence based liability. He also explained matrix method of compensation. When the vehicle is insured, the insurance company tries to settle for no fault liability and insurance company takes the defense to not compensate when the vehicle is used for some other purpose against the permitted use. The calculation of compensation by multiplier method was also discussed by him.

Why manufactures are hesitant to manufacture the car loaded with safety measures was elaborated in the workshop by Chief Guest of the workshop Prof. (Dr.) O.V. Nandimath.

He also talked on policies that are necessary to ensure car safety measures and said policies and regulations should be made to make roads safe and vehicles safe.

Expert speaker of the program Shri Hemanth Uphadhayay made a presentation to address the participants over the issue of car safety.

He discussed about the policies around the world for car safety. He said United Nations Organisation has set various minimum car safety measures and it is important to note that India is party to the UN regulations. On the basis of safety requirements 3 categories are made in cars i.e. 5 star category, 4 star category and 3 star category, 3 star category signifies a category which represents presence of minimum safety measures in a car.

In 2016, five Indian cars which made market share of nearly 20% in Indian market were tested, and then it was found that none of them have minimum safety standards. The cars before making to the market should pass through testing. And it is current demand that crash testing should be made at the speed of 64Kmph.

Further in his address he also spoke about 12 established car safety measures that are Electronic Stability Control (ESC), Electronic Brake Force Distribution (EBFD), Brake Assist (BA), Autonomous Energy Braking (AEB), Lane Keeping Technology, Visibility Aids, Seat Belt Enhancements, Airbags, Head Restraints, Child Car Seat Fixing Points, and Pedestrian Protection.

At the end of his presentation he suggested various recommendations such as Adoption of Global NCAP’s two stage minimum car safety regulation plan by the end of the U N Decade of Action in 2020, increasing role of consumer organisations in promotion of safety of cars, and Fiscal incentives and discounts to car buyers opting for safer models to encourage more rapid deployment of new technologies through the passenger car fleet. Suggestions such as to introduce Safety desk at Car Showrooms were made by him. Tips for consumers were also given at the end of his presentation, i.e. Consumer Awareness of Indian and Global Safety regulations is the first step, Consumers should give car safety a top priority, which in turn creates a demand for safer cars and regular emission checks, tyre pressure checks and making sure we ourselves buy safety and prevention tools like fire extinguisher spray.

Shri. Hemanth Uphadhayay informed that with effect from October 2017 the car manufacturer have opined that the new cars will be brought into the market with maximum safety features embedded in them.

At the end of the programme experts answered the questions of the participants and clarified their doubts. Various questions regarding efficiency of the safety measures, requirement of minimum safety measures, requirement of laws and regulations for car safety and creation of awareness among the consumers were put by the participants.

The Seminar concluded with the valedictory session by vote of thanks by Prof. Anita A. Patil.

Safer Cars Workshop in Patna in Collaboration with Janaki Foundation (August 11, 2017)

Safer Cars Workshop in Patna in Collaboration with Janaki Foundation (August 11, 2017)

Safer Cars Workshop in Patna in Collaboration with Janaki Foundation (August 11, 2017)

On August 11th, 2017, a workshop on Safer Cars was organized by Consumer Voice in collaboration with the State Partner for Bihar – The Janaki Foundation. The initiative is part of the campaign to advocate for safer cars for consumers. The consumer demand for safer cars will push for better safety regulation and standards in India at par with global safety standards.
Mr. Ravi Shankar, Senior Program Manager, The Janaki Foundation welcomed all the participants and officials for the program. Elaborating on the objectives of the consultation, Mr. Ravi said that these types of program must be organized regularly in Bihar to spread Car Safety/Road Safety awareness among the people to minimize the death occurred in the accident. People must follow the traffic rules and ensure that they drive carefully. Mr. Anup Kumar, Master Trainer from NEXA, Maruti Automobiles spoke about the importance of awareness regarding Car Safety and discussed various aspects of the safety such as seat belts, airbags, break assist, Electronic Control system etc.

Ms. Rinki Sharma from Consumer Voce New Delhi mentioned the various aspects regarding the Road safety measures with the presentation. She described the different safety measures of Car Safety She said that only 4% of car buyers place safety at the top of their list of criteria for choosing a new vehicle. Car safety is so important, not only for drivers but for all road users. He also said that in India when buyers go to buy a car they usually see- price, value for money, brand, mileage, colour, appearance, performance, fuel economy, Size and their last priority is safety. She has briefly discussed about Bharat New Vehicle Assessment Programme and urged the government to implement the same without compromising on any quality standards.

She also mentioned that by knowing more about the safety options that are available, we hope that this will lead to more informed buying decisions and, hopefully, safer choices leading to safer roads.”

Post the presentation, a short film was shown to the participants on car safety/road safety measure and to sensitize them of the loss one faces in life post the accident.

After the film Mr. Vijay Kumar, Public Health  Discussed briefly about importance of safety in this fast changing scenario and emphasized on the need of the implementation of BNCAP on time.

Participants asked questions on various safety aspects which were answered by Experts.Consumers, Consumer activist, NGO’s and civil society organizations took part in the programme and appreciated the Initiative.

Car Safety workshop on August 10, 2017 in Ranchi, Jharkhand

Car Safety workshop on August 10, 2017 in Ranchi, Jharkhand

Car Safety workshop on August 10, 2017 in Ranchi, Jharkhand

In continuation of project activities of Car Safety Initiative Consumer VOICE  along with partners Janaki and Rudra Foundations organised a workshop in Ranchi on 10th August at conference hall of Institute of Public Health,Namkum ,Ranchi Jharkhand.

Ms.Rinki Sharma in her introductory session told about the objectives of this initiative and also discussed various aspects of Car Safety in present scenario.She has discussed about safety features of seat belts, air bags, Automatic Breaking System (ABS),importance of safety features in vehicles especially in cars.

Further she also discussed about various steps taken on the global front and in Indian scenario such as Bharat New Vehicle Safety assessment Programme.

A short documentary film based on real life experiences of the victim/victim’s family members was shown to the audience. They appreciated the efforts through short film to make people aware about importance of safety aspects.

Another short video was shown to audience on safety belts and their importance.

Shri Vinay Kumar of Maruti Motor Driving Training School and Shri Tariq, experts from automobile sector discussed various safety aspects while driving on roads and how these safety features play an important role in today’s fast changing scenario. They discussed with audience through interactive session about technologies involved, how safety features works and why they are important.

They also asked audience to ask queries on safety features from manufacturers /car dealers while buying cars.

Shri Saket Singh of Rudra Foundation told that consumers prefer colour designinteriors and comfort over safety features while buying a car.He has also urged the audience to spread the message across and demand for basic safety features to be mandatory in all cars to government.

Shri Anjum of Prajwala foundation also emphasized on implementation of BNCAP without delay in consumer friendly way.

Consumers, representatives from Consumer and Civil Society Organsations, students and women participated in the programme with great enthusiasm .There was an interactive session of question answer and queries were answered by experts.

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