New Normal Concept – Initial Public Offering

Concept of Initial Public Offerin
Jan 5, 2024 Reading time : 3 min

We are aware of the concept when a private company decides to make itself public. This scenario is not very common as it happens. When a private company goes public by selling its shares, this type of concept is known as IPO or initial public offering. Any type of company-new, old can decide to go public with the help of their offerings. IPO helps the company by issuing shares to the public without giving a raise to new capital. Some companies take help from an IPO to raise funds for the company.

With the help of an IPO, the shares are traded to the open market and then these shares are sold by the investors to other markets. But companies should be really careful while taking the help of IPO because there are many benefits but the risk is involved too.

Time is changing and new things are coming every year.

Now, talking about the UPCOMING IPOS in 2021’s here they are :

  1. Utkarsh Small finance bank – Like a normal bank, this bank also provides all the services. This bank is thinking of raising funds with the help of IPO’s. IPO can help this back to become public. The bank is planning for the fresh issue of share which worth ₹165 crores.
  2. Fincare small finance bank – Fincare does all the other works which a back do and provides the banking services to the customers. It is also planning to file a   draft paper for the initial public offering. This company planning for a fresh issue worth Rs 330 crore.
  3. Nuvoco Vistas – It is another company in fact more fifth largest cement company in India. It is also planning to make itself public by selling the shares and raising the funds with the help of these offerings. The size of the issue is around Rs 5,000 crores of which  Rs 1,500 crores is a fresh issue and the rest can be offered for the sale.
  4. Shriram Properties – It is a company that is based in South India. Its work is to complete real estate projects. This company is planning to raise ₹800 crores by public offering. The fresh issue was worth ₹250 crores and an offer for sale worth ₹ 550ccrorese.
  5. Paytm IPO – With the growth of digital India, they are coming to highlight. It is a big company and gaining attention nowadays. Now this company is planning for a draft prospectus for initial public offerings. The fresh issue worth₹8,300 crores and offer for sale worth ₹8,300 crores

 All these companies are about being public and opening themselves in the private market. Other information related to these concepts is available in 5paisa. It is a tough job for every company to come out to the open market, it is a difficult process for them. These IPO’s helping them to come out and raise funds through offering shares. If the company is ready to take a risk because the risk is involved in this process, if the company is fully ready for it them then they can apply for the IPO concept.

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