UpComing IPOs List:
The Detailed list of UpComing IPOs in 2021.
The New Year is here, and the finance world is all abuzz about Chartered Speed IPO which have lowest IPO size in our list. What are we looking at this year, after a slightly disappointing IPO world in the latter half of 2020? You got it: the Chartered Speed IPO is slated to finally hit the charts this year.
Another one to watch for 2021 IPO is the Kalyan Jewellers IPO, which actually is a big player, this company manages more than a billion in assets. The Kalyan Jewellers IPO has been in the making for years, but 2021 may finally be it.
Get ready for the other UpComing IPOs like RailTel, Studds Accessories, Shyam Steel, some more finance companies, and perhaps even as exciting as the LIC IPO which has 70k crore IPO size, maybe the biggest of all time.
Up Coming IPO Listing
|Upcoming IPO||Issue date||IPO size|
|Lodha Developers||Up coming||5500 cr.|
|Bajaj Energy||2021||5450 cr.|
|NCDEX||Up coming||500 cr.|
|UTI AMC||Up coming||3000 cr.|
|Angel Broking||Up coming||600 cr.|
|Chartered Speed||Up coming||250 cr.|
|Barbeque Nation||Up coming||350 cr.|
|NSE||Up coming||4000 cr.|
|Montecarlo Limited||Up coming||550 cr.|
|Kalyan Jewellers||Jan to Mar, 2021||1,750 cr.|
|CAMS||Up coming||1500 cr.|
|Policy Bazaar||Up coming||1200 cr.|
|Studds Accessories||Feb 2021||450 cr.|
|Laxmi Organic Industries||2021||800 cr.|
|Shyam Steel||2021||500 cr.|
|Annai Infra Developers||2021||200-250 cr.|
Price band for all IPO mentioned above is not mentioned yet. All the above IPOs will held in up coming days. Issued Date of IPO is also not mentioned because it is not determined yet.
As soon as the issue date and price band finalized we will update it immediately. Even NSE (Stock Exchange) and CAMS (Registrar & Transfer Agent) gets SEBI nod for IPO.
IPO Full Form And It’s Meaning :
The full form of IPO is Initial Public Offering. In Layman terms IPO means to raise money from general public and in return offer them partnership in your company in the form of shares.
IPO is generally open for three working days for public. In IPO shares are offer to investors in lot size. Generally the price of one lot is Rs.15000. While the size of IPO could be around hundreds of crores. As you can see IPO size of various companies in above table of IPO Coming up.
IPO are of Two types:
- Fixed price IPO : The company in advance decide the fixed price for their shares.
- Book Building IPO : the company issue share price bandwidth.
The price bandwidth of company is determined by their foundars. Price bandwidth of IPO should be in the permitted range. The Bandwidth range should not be more than 20%.
In IPO, very first shares are offered to Anchor investor (Institutional investor) like banks, FIIs , Mutual funds, etc. After that shares are offer to general public.
General public can be characterized in two types:
- Retail Investors: If you applied to IPO of some company and the cost of your application is below Rs.2,00,000 then you belong to the category of Retail Investors.
- HNI (High Net worth Individual) : If you applied to IPO of some company and the cost of your application is above Rs.2,00,000 then you belong to the category of Retail Investors.
IPO Process With Practical Example:
Let say you have are founder of an Early stage startup and you want to raise funding for your startup to expand your business by increasing number of branches and employees. Now for that u need significant amount of capital. To raise funding you have four options.
Four Options To Raise Funding for Startups :
- Venture capital : Venture capital firm raise money for Startups from High Net worth Investors who wants to invest in Startups. Venture capitals mostly invest in Growth stage startup. They rarely invest in early stage Startups.
- Angel Investor : Angel investors are High Net worth Individual who invest in Startups. They mostly invest in Early Stage Startups unlike venture capitals.
- Business loan : Most banks offer loans to companies on collateral and valuation of company. If your company didn’t have sufficient collateral and valuation then bank can’t offer you loan.
- IPO : raise money from general public and you offer them partnership in your company in form of shares by bringing IPO and by listing your company in Stock Exchange.
As your startup is at early stage so you can raise funding for your startup Another option left is IPO. To raise funding through IPO you need to take approval of Stock Market Regulator (SEBI).
To list your company for IPO you first need to approach Merchant Banker. They make take some fees and will create DRHP for your company. DRHP being short for Draft Red Herring Prospectus.
DRHP consist of all information related to company like : when was company started, why it was started, who is the founder and what kind of business company does and DRHP also covers information about the management and promoters of the company.
After that you need to submit DRHP document to SEBI. They will verify the DRHP document , if all the provided information about company are accurate only then they will approve it.
When DRHP is approved then they would give your approval to bring IPO of your company but there is a rule that you need to bring IPO within a year after approved.
As you can see in the above Table of IPO Coming up, we didn’t mentioned issue date. This is because the date is yet to be finalized. The issue date will be finalized within a year after getting approved.
During IPO Allotment it is not necessary that all people will get allotted for shares if they applied. Let say the company is issuing only 1000 shares, but the application is for 2500 shares.
So, application for some investor might rejected. Those who apply for for 10 share may get around 3-4 shares. And those who apply for 2 shares may get none. Mostly Retail Investors get rejected.
After allotment of shares the company get’s listed in Stock exchange like BSE and NSE. Now all the shareholders who got shares during IPO can sell shares in Stock Exchange if they are interested. And those Retail investors who get rejected when applied for shares in IPO can now buy shares at open market in stock exchange.
A Breakdown Of The IPO Process:
Once a company decides to go public, it typically goes through the following steps leading up to its IPO:
Hiring the Bank:
The first step in the IPO process is hiring an underwriter, or the investment bank that will help guide the company through its IPO. The company and the underwriter will figure out the company’s financial needs and how much money it hopes to raise in the IPO. Typically, a company will bring on more than one bank helping to guide its IPO.
Submitting documents to the SEBI:
To go public, a company needs to register its IPO with the Securities & Exchange Board of India (SEBI). The SEBI is the Indian Regulatory Authority that regulates stock trading and stock exchanges, enforces industry regulations and protects investors.
The registration statement, is the formal document that explains the company’s business, potential risk factors, ways it will use the money raised in the IPO, and current ownership of the company’s stock.
The SEBI looks over the registration statement to determine if the company has provided enough information for potential investors.
Handing out the Preliminary Prospectus:
Next, those involved in the IPO can hand out the preliminary prospectus to seek interest in the IPO from potential investors. This document lists the estimated price range for one share of the company’s stock and other important information about the offering.
This first version of the prospectus is also known as a “red herring” because the first page has a red warning that the prospectus is not final.
Going on the Road Show:
The road show is an event where a company’s management team travels to seek interest in its IPO. During the roadshow, management will make live presentations to potential investors, usually large institutional investors. If prospective investors want to invest in the IPO, underwriters can take conditional offers or reservations for shares.
Finalizing the IPO:
At the end of the road show and right before IPO pricing, the company asks the SEBI to declare the registration statement effective so that purchases can be made. After getting an idea of demand for the IPO, the company and underwriters determine the share price of the company’s stock, which is listed in the final version of the prospectus.
After the IPO price is finalized, the underwriters and others involved in the IPO decide how many shares each investor will receive. This last step in the IPO typically occurs just before the stock begins trading on the stock market.
Real Life Example:
Imagine that you already have an established company. You decide you need Rs.1,00,00,00,000 to get the business to the next level by procuring new Technologies, hire skilled experts and make strategic acquisitions.
You already have leveraged enough with the Banks and Investors and the fact is they will all be charging you Heavy Interests for the same. Although you have been successfully paying your EMIs wouldn’t you wish there were a cheaper option.
You do… By Going Public!!!
But what does going Public mean?
It Means you are ready to consolidate your company into let’s say one huge pizza and put it up for sale. If your Pizza is popular enough (Pizza = Your Company), People would want a bite of it and seek to reap some benefit of your wares.
Only difference is that this Pizza is perpetual and the buyer can keep the piece for him/herself as long as desired and can be traded for cash whenever they feel like. They Own a part of your Pizza …. They now own a part of your Company.
If the company becomes more popular, more people will be wanting a slice of your company… But hey there is no more Stock / Pizza Slice that you want to offer. Naturally one would be forced to seek people who already own a slice and be ready to pay a premium for it. Hola you have entered the Secondary market for your Stocks.
Why did the NTPC French auction method not work?
Around the globe whenever the French auction route has been adopted the trading in the underlying security has either not existed or if it has then it has been stalled for some time, say a month or so, before the issue. This is due to the reason that French auction is always helpful on price discovery if no concurrent price is available as in the case of any IPO.
On the other hand, in the matter of NTPC’s FPO the secondary market price was always available which restricted investors from bidding for a much higher price than the available market price.
So it would have been a different story if trading in the NTPC stock in the secondary market was stalled for at least 15 days before the issue because then investors would have got inquisitive about the stock price. Another lacuna in the French auction route that surfaced during the time of the NTPC FPO was that it didn’t allow institutional investors to revise their bids.
However, a lesson has been learned and the government has now given greater flexibility to institutions for the REC FPO so that bids can be revised.