{"id":10018,"date":"2023-02-07T11:58:28","date_gmt":"2023-02-07T06:28:28","guid":{"rendered":"https:\/\/razorpay.com\/blog\/?p=10018"},"modified":"2023-02-17T10:55:17","modified_gmt":"2023-02-17T05:25:17","slug":"ipo-all-about-initial-public-offering","status":"publish","type":"post","link":"https:\/\/razorpay.com\/blog\/business-banking\/ipo-all-about-initial-public-offering\/","title":{"rendered":"IPO: All You Need To Know About Initial Public Offering"},"content":{"rendered":"<p><span style=\"font-weight: 400;\"><strong>July 23, 2021<\/strong><\/span><\/p>\n<p><strong>Zomato launched its IPO &amp; broke the internet.\u00a0<\/strong><\/p>\n<p><span style=\"font-weight: 400;\">But what garnered the excitement of the general public? <\/span><span style=\"font-weight: 400;\">In order to understand that, let us understand all about IPO: Initial Public Offering.<\/span><\/p>\n<h3><strong>What is an IPO?<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">IPO or initial public offering is the process of offering shares of a company directly to the public. The public can buy the shares of the company. This is how they obtain a listing on the stock market (private companies may issue stocks but aren\u2019t provided to the public in the form of an IPO)\u00a0<\/span><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_80 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<p class=\"ez-toc-title\" style=\"cursor:inherit\">Table of Contents<\/p>\n<label for=\"ez-toc-cssicon-toggle-item-69e99063abb31\" class=\"ez-toc-cssicon-toggle-label\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/label><input type=\"checkbox\"  id=\"ez-toc-cssicon-toggle-item-69e99063abb31\"  aria-label=\"Toggle\" \/><nav><ul class='ez-toc-list ez-toc-list-level-1 ' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/ipo-all-about-initial-public-offering\/#What_is_the_process_to_launch_an_IPO\" >What is the process to launch an IPO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/ipo-all-about-initial-public-offering\/#Advantages_and_Disadvantages_of_IPO\" >Advantages and Disadvantages of IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/ipo-all-about-initial-public-offering\/#Eligibility_for_IPO\" >Eligibility for IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/ipo-all-about-initial-public-offering\/#Why_do_Companies_launch_an_IPO\" >Why do Companies launch an IPO?<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/ipo-all-about-initial-public-offering\/#Performance_of_IPO\" >Performance of IPO<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/ipo-all-about-initial-public-offering\/#List_of_companies_launching_IPO_in_2023\" >List of companies launching IPO in 2023<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/razorpay.com\/blog\/business-banking\/ipo-all-about-initial-public-offering\/#How_Can_You_Benefit_from_an_IPO\" >How Can You Benefit from an IPO?<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"What_is_the_process_to_launch_an_IPO\"><\/span><strong>What is the process to launch an IPO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">When a company wants to get listed, they advertise to its underwriters <\/span><span style=\"font-weight: 400;\">by soliciting private bids or by making a public statement to generate interest.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The IPO process is led by the underwriters chosen by the company.\u00a0<\/span><\/p>\n<p><strong><em>Who is an underwriter?<\/em><\/strong><\/p>\n<table>\n<tbody>\n<tr>\n<td><span style=\"font-weight: 400;\">An underwriter explores and evaluates an investor\u2019s risk in any kind of investment. They belong to a financial organization.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h3><strong>Steps to launch an IPO:<\/strong><\/h3>\n<h4><span style=\"font-weight: 400;\"><strong>1. Hiring an Underwriter or Investment Bank<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">To start the initial public offering process, the company approaches an <\/span><span style=\"font-weight: 400;\">investment banker and banker who acts as an underwriter for raising the funds.<\/span><span style=\"font-weight: 400;\"> The investment bank studies the important financial parameters of the company and signs an underwriting agreement. The underwriting agreement has the following components:<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Details of the deal<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Amount to be raised<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Details of securities being issued<\/span><\/li>\n<\/ul>\n<h4><span style=\"font-weight: 400;\"><strong>2. Registration for IPO<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">A registration statement and a draft prospectus are created by the company and the investment bank of their choice.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The company has to submit the Red Herring Prospectus (also known as the RHP) document that the issuer and the underwriters use to market the initial public offering.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">\u00a0All information about the business except the number of shares and their price will be provided in this document. <\/span><span style=\"font-weight: 400;\">This document also provides information to the investors about where the money raised through it will be used. This would enable the investors to trust the developmental process of the business.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">RHP is the most important document that an investor can use to evaluate the offer.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\"><strong>3.<\/strong> <strong>Verification by SEBI (The Securities and Exchange Board of India)<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">Market regulator, SEBI then verifies the facts provided by the company. Once it is verified, the application goes through an approval process and a date is fixed for announcing its IPO.\u00a0<\/span><\/p>\n<h4><span style=\"font-weight: 400;\"><strong>4.<\/strong> <strong>Submit the Application To the Stock Exchange<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">The Stock exchange receives an application form from the company with its initial issue.<\/span><\/p>\n<h4><strong>5. Create awareness in the market<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">Before a company decides to go public, the company advertises the impending IPO in the market all across the country through road shows, company events etc.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">This is basically to attract potential investors so that once the company goes public, investors can pour in and buy their shares.<\/span><\/p>\n<h4><strong>6. Pricing of IPO<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">The Pricing of the IPO can finally begin either through\u00a0<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Fixed Price wherein the stock price of the company is announced beforehand or<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">Book Binding Offering wherein only 20% of the price range is announced and the remaining would be filled in by the investors who can place their bids as per the minimum number of shares to be purchased.<\/span><\/li>\n<\/ul>\n<p><span style=\"font-weight: 400;\">Investors can relook at their bids since the booking is usually open from three to five working days.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">After the bidding process gets over, the company will determine the Cut-Off price will be evaluated by the company.\u00a0<\/span><\/p>\n<p><strong>\u00a0Cut-off price= Final price at which the issue will be sold.<\/strong><\/p>\n<h4><strong>7. Allotment of shares:<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">The number of shares to be allotted to each investor will be decided by the company and the underwriters once the share price is fixed. It takes around 10 days from the last bidding date for the allotment of the stocks to the investors.\u00a0<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Advantages_and_Disadvantages_of_IPO\"><\/span>Advantages and Disadvantages of IPO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Let&#8217;s have a look at the pros and cons of IPO.<\/p>\n<table>\n<tbody>\n<tr>\n<td><strong>Advantages<\/strong><\/td>\n<td><strong>Disadvantages<\/strong><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\"><strong>Increased capital:<\/strong> It provides a company with access to the capital markets, allowing it to raise large amounts of money to fund growth and expansion.<\/span><\/td>\n<td><span style=\"font-weight: 400;\"><strong>Increased cost:<\/strong> It is an expensive process, and companies must spend a lot of money to prepare for the offering.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\"><strong>Greater liquidity:<\/strong> It also gives existing shareholders a way to cash out their investments, providing greater liquidity for the stock.<\/span><\/td>\n<td><span style=\"font-weight: 400;\"><strong>Loss of control:<\/strong> It also dilutes the ownership of the company, resulting in a decrease in control for existing shareholders.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\"><strong>Improved visibility:<\/strong> It gives the company greater visibility, making it easier to attract customers, partners, and investors.<\/span><\/td>\n<td><span style=\"font-weight: 400;\"><strong>Compliance:<\/strong> Companies must comply with a number of regulations and requirements in order to go public, which can be time-consuming and expensive.<\/span><\/td>\n<\/tr>\n<tr>\n<td><span style=\"font-weight: 400;\"><strong>Prestige:<\/strong> It also provides the company with prestige and recognition, which can help attract more investors and partners.\u00a0<\/span><\/td>\n<td><span style=\"font-weight: 400;\"><strong>Risk:<\/strong> Going public also carries a certain level of risk, as the company is now subject to the scrutiny of the public markets.<\/span><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n<h2><span class=\"ez-toc-section\" id=\"Eligibility_for_IPO\"><\/span><strong>Eligibility for IPO<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">Below are the eligibility criteria for a company to go public:<\/span><\/p>\n<ul>\n<li><span style=\"font-weight: 400;\"> The company must have a minimum net worth of Rs. 3 crores.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> It must have been in business for at least 3 years.<\/span><\/li>\n<li><span style=\"font-weight: 400;\">The company must have made profits in at least 2 out of the 3 most recent financial years.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> At least 25% of the company must be owned by the public (i.e. not held by promoters or related parties).<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> The audited financial statements for the past 3 years must be clean, with no qualifications or exceptions.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> It must have a minimum paid-up capital of Rs. 1 crore.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> The net profit in the last 3 years must be positive.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"> The company should not have defaulted on any loan and\/or overdraft from any bank or financial institution.<\/span><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"Why_do_Companies_launch_an_IPO\"><\/span><strong>Why do Companies launch an IPO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p><span style=\"font-weight: 400;\">There are various reasons why a company decides on launching an IPO. The most important reasons are given below:<\/span><\/p>\n<h3><strong>1. Raise Capital for expansion<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">One of the most important benefits of having an IPO is that it helps in raising capital for the business. Raising capital can help increase the growth and development of a company as they can utilise it for more research, infrastructure development, corporate expansion etc.<\/span><\/p>\n<p style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/x.razorpay.com\/auth\/signup?r=blog_cta_business_banking_automation_finance&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Talk to an expert<\/a><\/p>\n<h3><strong>2. Value Assessment<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">\u00a0<\/span><span style=\"font-weight: 400;\">Once a company&#8217;s stock gets listed in the exchange, its value is equal to what an investor is willing to pay for. Hence, it lets outsiders know the current value or worth of the company.\u00a0<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Value assessment is indispensable for a company willing to grow in future and carry out mergers and acquisitions.<\/span><\/p>\n<h3><strong>3. Increase Credibility:<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">A company\u2019s credibility may grow when they go public. The financial data of the company would be accessible to the public with SEBI\u2019s strict regulations. This will enhance transparency and build trust with the public.<\/span><\/p>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/x.razorpay.com\/?r=blog_cta_business_banking_ipo&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Join RazorpayX!<\/a><\/div>\n<p>&nbsp;<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Performance_of_IPO\"><\/span>Performance of IPO<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>IPO performance can be dependent on a few factors. Let&#8217;s have a look.<\/p>\n<p><strong>1. Timing:<\/strong><span data-offset-key=\"22ofc-17-0\"> The<\/span><span data-offset-key=\"22ofc-18-0\"> timing<\/span><span data-offset-key=\"22ofc-19-0\"> of<\/span><span data-offset-key=\"22ofc-20-0\"> an<\/span><span data-offset-key=\"22ofc-21-0\"> IPO<\/span><span data-offset-key=\"22ofc-22-0\"> is<\/span><span data-offset-key=\"22ofc-23-0\"> critical<\/span><span data-offset-key=\"22ofc-24-0\"> to<\/span><span data-offset-key=\"22ofc-25-0\"> its<\/span><span data-offset-key=\"22ofc-26-0\"> performance<\/span><span data-offset-key=\"22ofc-27-0\">.<\/span><span data-offset-key=\"22ofc-28-0\"> Companies<\/span><span data-offset-key=\"22ofc-29-0\"> should<\/span><span data-offset-key=\"22ofc-30-0\"> consider<\/span><span data-offset-key=\"22ofc-31-0\"> the<\/span><span data-offset-key=\"22ofc-32-0\"> current<\/span><span data-offset-key=\"22ofc-33-0\"> market<\/span><span data-offset-key=\"22ofc-34-0\"> conditions<\/span><span data-offset-key=\"22ofc-35-0\"> and<\/span><span data-offset-key=\"22ofc-36-0\"> the<\/span><span data-offset-key=\"22ofc-37-0\"> macro<\/span><span data-offset-key=\"22ofc-38-0\">economic<\/span><span data-offset-key=\"22ofc-39-0\"> outlook<\/span><span data-offset-key=\"22ofc-40-0\"> when<\/span><span data-offset-key=\"22ofc-41-0\"> deciding<\/span><span data-offset-key=\"22ofc-42-0\"> when<\/span><span data-offset-key=\"22ofc-43-0\"> to<\/span><span data-offset-key=\"22ofc-44-0\"> go<\/span><span data-offset-key=\"22ofc-45-0\"> public<\/span><span data-offset-key=\"22ofc-46-0\">.<\/span><\/p>\n<p><strong>2. Pricing:<\/strong><span data-offset-key=\"22ofc-53-0\"> The<\/span><span data-offset-key=\"22ofc-54-0\"> pricing<\/span><span data-offset-key=\"22ofc-55-0\"> of<\/span><span data-offset-key=\"22ofc-56-0\"> an<\/span><span data-offset-key=\"22ofc-57-0\"> IPO<\/span><span data-offset-key=\"22ofc-58-0\"> should<\/span><span data-offset-key=\"22ofc-59-0\"> be<\/span><span data-offset-key=\"22ofc-60-0\"> strategically<\/span><span data-offset-key=\"22ofc-61-0\"> set<\/span><span data-offset-key=\"22ofc-62-0\"> to<\/span><span data-offset-key=\"22ofc-63-0\"> be<\/span><span data-offset-key=\"22ofc-64-0\"> attractive<\/span><span data-offset-key=\"22ofc-65-0\"> to<\/span><span data-offset-key=\"22ofc-66-0\"> potential<\/span><span data-offset-key=\"22ofc-67-0\"> investors<\/span><span data-offset-key=\"22ofc-68-0\">.<\/span><span data-offset-key=\"22ofc-69-0\"> Companies<\/span><span data-offset-key=\"22ofc-70-0\"> should<\/span><span data-offset-key=\"22ofc-71-0\"> evaluate<\/span><span data-offset-key=\"22ofc-72-0\"> current<\/span><span data-offset-key=\"22ofc-73-0\"> market<\/span><span data-offset-key=\"22ofc-74-0\"> conditions<\/span><span data-offset-key=\"22ofc-75-0\">,<\/span><span data-offset-key=\"22ofc-76-0\"> competition<\/span><span data-offset-key=\"22ofc-77-0\">,<\/span><span data-offset-key=\"22ofc-78-0\"> and<\/span><span data-offset-key=\"22ofc-79-0\"> the<\/span><span data-offset-key=\"22ofc-80-0\"> potential<\/span><span data-offset-key=\"22ofc-81-0\"> for<\/span><span data-offset-key=\"22ofc-82-0\"> future<\/span><span data-offset-key=\"22ofc-83-0\"> growth<\/span><span data-offset-key=\"22ofc-84-0\"> when<\/span><span data-offset-key=\"22ofc-85-0\"> determining<\/span><span data-offset-key=\"22ofc-86-0\"> the<\/span><span data-offset-key=\"22ofc-87-0\"> IPO<\/span><span data-offset-key=\"22ofc-88-0\"> price<\/span><span data-offset-key=\"22ofc-89-0\">.<\/span><\/p>\n<p><strong>3. <span data-offset-key=\"ce7qk-4-0\">Fl<\/span><span data-offset-key=\"ce7qk-5-0\">ipping<\/span><span data-offset-key=\"ce7qk-6-0\">: <\/span><\/strong>It\u00a0is the practice of quickly buying and selling shares of a newly-listed stock to take advantage of short-term price movements. Investors often do this to capture quick profits and capitalize on the hype surrounding the new offering. \u00a0Additionally, it can be difficult to predict the performance of a newly-listed stock and investors may end up losing money if they do not properly analyze the fundamentals of the company.<\/p>\n<p><strong>4. Promotion:<\/strong><span data-offset-key=\"22ofc-142-0\"> Companies<\/span><span data-offset-key=\"22ofc-143-0\"> should<\/span><span data-offset-key=\"22ofc-144-0\"> promote<\/span><span data-offset-key=\"22ofc-145-0\"> the<\/span><span data-offset-key=\"22ofc-146-0\"> IPO<\/span><span data-offset-key=\"22ofc-147-0\"> in<\/span><span data-offset-key=\"22ofc-148-0\"> order<\/span><span data-offset-key=\"22ofc-149-0\"> to<\/span><span data-offset-key=\"22ofc-150-0\"> generate<\/span><span data-offset-key=\"22ofc-151-0\"> interest<\/span><span data-offset-key=\"22ofc-152-0\"> and<\/span> <span data-offset-key=\"22ofc-154-0\">attract<\/span><span data-offset-key=\"22ofc-155-0\"> investors<\/span><span data-offset-key=\"22ofc-156-0\">.<\/span><span data-offset-key=\"22ofc-157-0\"> This<\/span><span data-offset-key=\"22ofc-158-0\"> may<\/span><span data-offset-key=\"22ofc-159-0\"> include<\/span><span data-offset-key=\"22ofc-160-0\"> advertising<\/span><span data-offset-key=\"22ofc-161-0\">,<\/span><span data-offset-key=\"22ofc-162-0\"> public<\/span><span data-offset-key=\"22ofc-163-0\"> relations<\/span><span data-offset-key=\"22ofc-164-0\"> campaigns<\/span><span data-offset-key=\"22ofc-165-0\">,<\/span><span data-offset-key=\"22ofc-166-0\"> and<\/span><span data-offset-key=\"22ofc-167-0\"> other<\/span><span data-offset-key=\"22ofc-168-0\"> types<\/span><span data-offset-key=\"22ofc-169-0\"> of<\/span><span data-offset-key=\"22ofc-170-0\"> promotions<\/span><span data-offset-key=\"22ofc-171-0\">.<\/span><\/p>\n<p><strong>5. Management:<\/strong><span data-offset-key=\"22ofc-178-0\"> The<\/span><span data-offset-key=\"22ofc-179-0\"> management<\/span><span data-offset-key=\"22ofc-180-0\"> team<\/span><span data-offset-key=\"22ofc-181-0\"> should<\/span><span data-offset-key=\"22ofc-182-0\"> have<\/span><span data-offset-key=\"22ofc-183-0\"> a<\/span><span data-offset-key=\"22ofc-184-0\"> deep<\/span><span data-offset-key=\"22ofc-185-0\"> understanding<\/span><span data-offset-key=\"22ofc-186-0\"> of<\/span><span data-offset-key=\"22ofc-187-0\"> the<\/span><span data-offset-key=\"22ofc-188-0\"> industry<\/span><span data-offset-key=\"22ofc-189-0\">,<\/span><span data-offset-key=\"22ofc-190-0\"> the<\/span><span data-offset-key=\"22ofc-191-0\"> company<\/span><span data-offset-key=\"22ofc-192-0\">\u2019<\/span><span data-offset-key=\"22ofc-193-0\">s<\/span><span data-offset-key=\"22ofc-194-0\"> products<\/span><span data-offset-key=\"22ofc-195-0\">,<\/span><span data-offset-key=\"22ofc-196-0\"> and<\/span><span data-offset-key=\"22ofc-197-0\"> the<\/span><span data-offset-key=\"22ofc-198-0\"> potential<\/span><span data-offset-key=\"22ofc-199-0\"> markets<\/span><span data-offset-key=\"22ofc-200-0\">.<\/span><span data-offset-key=\"22ofc-201-0\"> They<\/span><span data-offset-key=\"22ofc-202-0\"> should<\/span><span data-offset-key=\"22ofc-203-0\"> also<\/span><span data-offset-key=\"22ofc-204-0\"> have<\/span><span data-offset-key=\"22ofc-205-0\"> a<\/span><span data-offset-key=\"22ofc-206-0\"> strong<\/span><span data-offset-key=\"22ofc-207-0\"> track<\/span><span data-offset-key=\"22ofc-208-0\"> record<\/span><span data-offset-key=\"22ofc-209-0\"> of<\/span><span data-offset-key=\"22ofc-210-0\"> success<\/span><span data-offset-key=\"22ofc-211-0\"> and<\/span><span data-offset-key=\"22ofc-212-0\"> have<\/span><span data-offset-key=\"22ofc-213-0\"> a<\/span><span data-offset-key=\"22ofc-214-0\"> well<\/span><span data-offset-key=\"22ofc-215-0\">&#8211;<\/span><span data-offset-key=\"22ofc-216-0\">defined<\/span><span data-offset-key=\"22ofc-217-0\"> strategy<\/span><span data-offset-key=\"22ofc-218-0\"> for<\/span><span data-offset-key=\"22ofc-219-0\"> future<\/span><span data-offset-key=\"22ofc-220-0\"> growth<\/span><span data-offset-key=\"22ofc-221-0\">.<\/span><\/p>\n<h2><span class=\"ez-toc-section\" id=\"List_of_companies_launching_IPO_in_2023\"><\/span>List of companies launching IPO in 2023<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Here&#8217;s a list of companies that are launching IPO in 2023.<\/p>\n<ol>\n<li>Snapdeal Ltd<\/li>\n<li>Go Airlines India Ltd<\/li>\n<li>One Mobikwik Systems Ltd<\/li>\n<li>One Mobikwik Systems Ltd<\/li>\n<li>OYO<\/li>\n<li>Bharat FIH<\/li>\n<li>Fabindia Ltd<\/li>\n<li>EbixCash Ltd<\/li>\n<li>HMA Agro Industries Ltd<\/li>\n<li>Yatra Online<\/li>\n<\/ol>\n<h2><span class=\"ez-toc-section\" id=\"How_Can_You_Benefit_from_an_IPO\"><\/span><strong>How Can You Benefit from an IPO?<\/strong><span class=\"ez-toc-section-end\"><\/span><\/h2>\n<h4><strong>1. Get in on the action early<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">By investing in an IPO, you can enter the \u2018ground floor\u2019 of a company with high growth potential. An IPO may be your window to rapid profit in a short time period. It may also help grow your wealth in the long run.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Suppose, you invest in a young company that sells disruptive technology. If it manages to sway the market and rake in profits, you would gain from its success too.<\/span><\/p>\n<blockquote class=\"modern-quote\"><p><span style=\"font-weight: 400;\">\u201cIn 1997 when<\/span><span style=\"font-weight: 400;\"> Amazon.com Inc. floated an IPO, each share was priced at $18. So if you had invested $5,000 in Amazon\u2019s IPO, your shares would have been worth $2.5 million in April 2018<\/span><span style=\"font-weight: 400;\">\u201c<\/span><\/p><\/blockquote>\n<h4><span style=\"font-weight: 400;\"><strong>2<\/strong>. <strong>Long-term financial goals<\/strong><\/span><\/h4>\n<p><span style=\"font-weight: 400;\">IPO investments are equity investments.\u00a0 Historically investment in the equity market has given 12-15% return over a 5-year horizon. So keeping in mind the long-term financial goals and returns, investment in equity instruments through IPO can fulfil your long-term financial goals of generating better returns.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">The cumulative returns earned can help you to fulfil long-term financial goals like buying a house.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">Besides, the Indian IPO market is growing. In 2017, $11 billion was generated by the Indian stock market through IPOs.<\/span><\/p>\n<h4><strong>3. Transparency<\/strong><\/h4>\n<p><span style=\"font-weight: 400;\">Anyone investing in an IPO becomes a company shareholder by default. This enables the investors to be associated with the goals and profit levels of the company they have invested in. <\/span><span style=\"font-weight: 400;\">The price per security issued is clearly mentioned in the IPO order document. So, you have access to the same information as bigger investors.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">You will also have access to all the financial statements, and audit reports as will have to be shared with shareholders and in the public domain<\/span><span style=\"font-weight: 400;\">.<\/span><\/p>\n<p>Read More: <a href=\"https:\/\/rbi.org.in\/Scripts\/bs_viewcontent.aspx?Id=3619\" rel=\"nofollow noopener\" target=\"_blank\">Performance of IPO Firms after Issue in India<\/a><\/p>\n<h3><strong>Future Forward Banking for Startups<\/strong><\/h3>\n<p><span style=\"font-weight: 400;\">The startup ecosystem has been booming in India. A number of startups like LIC, Delhivery and Nykaa have recently gone public.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">From choosing the right business banking to dreaming about the day your company goes public, the journey of a founder is overwhelming.<\/span><\/p>\n<p><span style=\"font-weight: 400;\">New-age Business Banking in the same way has helped shape the financial operations of businesses today significantly.<\/span><\/p>\n<ul>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">One-stop banking solutions platforms like <a href=\"https:\/\/razorpay.com\/x\/current-accounts\/\">RazorpayX<\/a> allows business owners to open <a href=\"https:\/\/razorpay.com\/x\/current-accounts\/?utm_source=direct&amp;utm_medium=website\">current accounts<\/a>, <a href=\"https:\/\/razorpay.com\/x\/tax-payments\/\">pay taxes<\/a>, schedule payments, <a href=\"https:\/\/razorpay.com\/x\/vendor-payments\/\">pay vendors<\/a> seamlessly and check invoices from a single dashboard. This saves valuable time and effort.\u00a0<\/span><\/li>\n<li style=\"font-weight: 400;\" aria-level=\"1\"><span style=\"font-weight: 400;\">It is an accounting and banking platform that fills the gap between advanced banking solutions and finance professionals. It allows easy accounting software integration.<\/span><\/li>\n<li><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\"><span style=\"font-weight: 400;\">With <a href=\"https:\/\/razorpay.com\/payroll\/\">RazorpayX Payroll<\/a>, businesses can automate salary payments and provide insurance policies to their employees.<\/span><\/span><\/span><\/li>\n<\/ul>\n<div style=\"text-align: center;\"><a style=\"border-radius: 3px; background: #528FF0; padding: 15px; font-weight: 600; cursor: pointer; text-decoration: none; color: white;\" href=\"https:\/\/x.razorpay.com\/auth\/signup\/?intent=current_account?r=blog_cta_business_banking_ipo&amp;utm_source=blog&amp;utm_medium=cta\" target=\"_blank\" rel=\"noopener\" data-schema-attribute=\"\">Explore RazorpayX-powered Current Account<\/a><\/div>\n<div><\/div>\n<h3>Frequently Asked Questions:<\/h3>\n<div id=\"rank-math-rich-snippet-wrapper\"><div id=\"rank-math-faq\" class=\"rank-math-block\">\n<div class=\"rank-math-list \">\n<div id=\"faq-1\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What is IPO?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>IPO or initial public offering is the process of offering shares of a company directly to the public. The public can buy the shares of the company.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-2\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">How can you benefit from IPO?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>When you invest in a company you become directly associated with the company, their goals and its objectives. Investing in IPO can help bring great returns for your business in the long run.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-3\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Which are the companies that recently launched IPO?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>Some of the companies are Nykaa, Delhivery, Zomato which recently launched IPO.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-4\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">What is the purpose of IPO?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>An Initial Public Offering (IPO) is the process by which a privately held company becomes a publicly traded company on a stock exchange. It is a way for a company to raise additional capital, increase its market liquidity, and gain more visibility and recognition. The proceeds from an IPO are used to expand operations, develop new products, reduce debt, or acquire other companies.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-5\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">Is IPO a good investment?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>It depends. IPOs can be risky investments and not always turn out to be profitable. It is important to carefully research the company before investing in its IPO, and to make sure that the investment fits with your overall investment strategy.<\/p>\n\n<\/div>\n<\/div>\n<div id=\"faq-6\" class=\"rank-math-list-item\">\n<h3 class=\"rank-math-question \">How is an IPO priced?<\/h3>\n<div class=\"rank-math-answer \">\n\n<p>An IPO is priced through a process called book building. During this process, the investment bank managing the IPO (called the \u201cunderwriter\u201d) will consult with the company issuing the shares and gauge investor demand for the stock. The underwriter will then set a \u201cprice range\u201d for the stock, which is a range of prices that investors are willing to pay for the shares. Once the price range is established, the underwriter will then set the final offering price, which is the price at which the shares will be sold at the IPO.<\/p>\n\n<\/div>\n<\/div>\n<\/div>\n<\/div><\/div>\n","protected":false},"excerpt":{"rendered":"<p>July 23, 2021 Zomato launched its IPO &amp; broke the internet.\u00a0 But what garnered the excitement of the general public? In order to understand that, let us understand all about IPO: Initial Public Offering. What is an IPO? IPO or initial public offering is the process of offering shares of a company directly to the<\/p>\n","protected":false},"author":102,"featured_media":11503,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"inline_featured_image":false,"footnotes":""},"categories":[27],"tags":[368],"class_list":{"0":"post-10018","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-business-banking","8":"tag-ipo"},"_links":{"self":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10018","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/users\/102"}],"replies":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/comments?post=10018"}],"version-history":[{"count":0,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/posts\/10018\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media\/11503"}],"wp:attachment":[{"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/media?parent=10018"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/categories?post=10018"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/razorpay.com\/blog\/wp-json\/wp\/v2\/tags?post=10018"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}